Issue - meetings

The report presents an overview of services across the Authority with the highest risk of financial pressure or upside for the 2025/26 financial year, using information available up to the end of June 2025.

Cllr Mark Elliott, Cabinet Member for Resources, introduced the report, moved the officer recommendation and made the following points:

·  The report focuses on financial progress since April 2025, based on the first two months of data and aims to identify early risks and enable timely action.

·  Departments used a risk-based assessment due to limited data with an emphasis on identifying services at highest risk of budget variance.

Children’s Services:

·  This is the area identified as the biggest financial risk.

·  8 new residential placements at the end of last year caused a £2.7m pressure.

·  4 more placements since April added £1.5m, with potential for 4 more (£1.5m).

·  This gives a total potential extra pressure of £4m–£8m, on top of an existing £4m budget increase.

Home to School Transport:

·  There is no current additional risk, unlike last year.

·  The full demand for this service is expected to be clearer by the Autumn.

Roman Baths:

·  The Baths are performing well, but visitor numbers may fall short of the 1.1 million target.

·  The national trend shows lower international visitor numbers.

·  The summer period will be critical for final outcomes.

Savings:

·  £10m of the £14m budgeted savings are already showing as delivered.

·  The remaining £4m still poses a material risk at this stage.

Contingency Planning:

·  There is a large contingency fund set aside in anticipation of pressures.

·  The current overall risk exposure is around £1.6m after accounting for contingencies.

Conclusion:

·  The financial outlook remains challenging; this is consistent with national trends.

·  The Council is well-prepared and aims to deliver a balanced budget by April 2026.

Cllr Matt McCabe seconded the motion.  He stated that this administration is fiscally responsible and welcomed the approach to consideration and management of risk.

RESOLVED (unanimously)

(1)  To note the 2025/26 revenue budget risk analysis detailed within paragraphs 3.2 to 3.10 of the report (as at the end of June 2025).

(2)  To note and approve where required the revenue virements listed in Appendix 3(i) of the report.

(3)  To note the capital year-end forecast detailed in paragraph 3.23 of the report.

(4)  To the changes in the capital programme including capital schemes that have been agreed for full approval under delegation listed in Appendix 2(i) of the report.