Agenda item

The report presents the financial monitoring information for the Authority for the 2025/26 financial year, using information available up to the end of September 2025.

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

·  The report provides a detailed overview of our financial position at the mid-year point and is a vital part of our commitment to transparency and sound financial management.

·  The current position of the 2025/26 Capital Programme is a forecast spend of £106.2 million against a budget of £146.4 million, giving a variance of £40.2 million.

·  Of this variance, £39.6 million (the vast majority) is anticipated to be rephased into future years, reflecting the reality of project delivery timescales and the need to align spend with actual progress on the ground.

·  At the end of September, the Council is forecasting a £2.4 million overspend against the revised revenue budget. That is after the use of £9.8 million in budgeted contingencies and £1.5 million from the pay and grading reserve.

·  This position reflects the continued challenges facing local government nationally, including rising demand for statutory services, inflationary pressures and the ongoing impact of pay and grading reviews.

·  Children’s Services has a forecast overspend of £6m. This continues to be driven by high-cost residential placements for vulnerable and complex young people, increased demand and continued reliance on agency staff to cover vacancies.

·  Adult Social Care is forecasting a net overspend of £1m.  The main drivers are increased demand for residential care, and home care, as well as pressures in learning disabilities services.

·  Heritage Services are facing a £2.3m shortfall, primarily due to lower than projected visitor numbers at the Roman Baths and associated retails and catering income.

·  There are also pressures in the Corporate and Commercial Estate as well as in Waste and Fleet Services.

·  While the capital programme remains on track overall, the revenue budget continues to be under significant pressure.  Directors are actively developing mitigation plans to bring the budget back into balance by year-end.

Cllr Paul Roper seconded the motion and made the following points:

·  It is very difficult to manage demand-led services such as Children’s Services.

·  Heritage Services have not yet seen the return of the Asian and USA market and visitors are not spending as much as they have in the past.

·  We are seeing some signs of improvement in our High Streets with regeneration.

·  There is still room for optimism as Bath is a great city, and various projects have been undertaken or are underway such as:

o  Somer Valley Enterprise Zone

o  Midsomer Norton High Street renewal

o  Radstock Regeneration Programme

o  Milsom Quarter Masterplan

o  Bath Quays North

o  Fashion Museum

RESOLVED (unanimously):

(1)  To note the 2025/26 revenue budget position detailed within the report (as at the end of September 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 3.32 of the report.

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