Agenda item

To receive the 2025/26 Financial Monitoring Report.

The Cabinet Member for Finance, Governance and Customer Services presented the report of the Director for Finance, People and IDT, which provided Cabinet with the latest financial monitoring position for the year in relation to the Revenue Budget, Capital Programme and income collection.

Councillor Hannington said that despite one of the most challenging national financial environments Councils had faced in over a decade, the Council’s position this year was remarkably strong.  Through disciplined in-year financial management and decisive early action, the Council was projecting to deliver a balanced out-turn for 2025/26, which was a significant achievement when many authorities across the country were reporting severe financial distress.

The Council’s planned budgeted contingencies, both for general pressures and those specifically ringfenced for social care, had been used exactly as intended and had absorbed the pressures experienced without drawing on reserves. As a result, the Council’s budget strategy reserve of £21.7m and general balances of £4.1m remained completely untouched, which demonstrated genuine financial resilience and gave the Council stability heading into next year.

Adult social care continued to face high national demand and cost pressures, but the Council’s approach was working.  It had delivered almost £5m in-year savings and cost avoidance and, importantly, the rate of growth in long-term care demand had begun to slow.  The Council’s home first and prevention focused strategies were not only improving outcomes for residents but also helping to stabilise expenditure.

The Council’s £124m Capital Programme for 2025/26 was progressing well with major regeneration, education and infrastructure schemes advancing and projected to complete on budget.  Capital receipts were on target and the Council’s investment programme continued to deliver visible improvements across the borough.  The Council had again demonstrated the strength of its overall financial governance, a consistent record of balanced outturns and unqualified audit opinions.

The Council’s 2024/25 accounts had been signed off on 10 February 2026 with an unqualified audit opinion ahead of the backstop deadline of 27 February.

A positive, multi-year funding settlement had been secured that increased the Council’s spending power by 8.8 % next year.

The Cabinet Member thanked the whole team for its outstanding work. The positive feedback from KPMG and the Audit Committee was a real testament to the team’s dedication, professionalism and excellence. In summary, this report showed a Council that was financially stable, well managed and proactively addressed pressures whilst protecting frontline services. It reflected the hard work of teams across the organisation, and it positioned the Council strongly for the year ahead.

The Leader of the Liberal Democrat Group said it was not every local authority that got their accounts out as quickly as Telford and Wrekin did, and he congratulated the team for doing so.  Also, to get an unqualified audit report, which meant the figures that had been presented were accurate for the accounts for the previous financial year and were sound meant that the Council was considered to deliver value for money services. He was pleased that this Council took governance, the accounts and audits etc. seriously.

The Leader of the Conservative Group said he was well aware of the challenges to try and square the social care budget and that there was a lot of work to be done there.  It did not alter the fact that the Council had used over £7m worth of reserves to deal with the gap caused partly by adult social care.

RESOLVED – that Cabinet noted:

a)    the 2025/26 revenue budget position, which showed that due to the proactive in-year financial management, the Council was projecting to be within budget at year end;

b)   the estimated total reserves at the end of 2025/26 were £57.3m including the £21.7m Budget Strategy Reserve and £4.1m in General Balances which both remain unused during 2025/26;

c)    the position in relation to capital spend

d)   the collection rates for NNDR, Council Tax and Sales Ledger