Issue - meetings

Business Management & Monitoring Report - Revenue Update and Monitoring Report

Forward Plan Ref: 2025/099

Contact: Kathy Wilcox, Head of Corporate Finance

Kathy.wilcox@oxfordshire.gov.uk

Report by Executive Director of Finance and Section 151 Officer (CA17)

The budget for 2025/26 and Medium-Term Financial Strategy (MTFS) to 2027/28 was agreed by Council on 11 February 2025. £53.6m new funding to meet inflationary and demand pressures in 2025/26 was included as part of the budget along with £6.9m investments and £30.3m savings.

This report sets out the initial revenue forecast and expected outlook for the financial year and includes updates on:

· financial risks which will need to be managed in 2025/26;

· savings and investment position; and

· funding notified since the budget was agreed.

The Cabinet is RECOMMENDED to

a) Note the report and annexes.

b) Approve a £3.5m transfer from Budgets held centrally to Adult Services to meet the financial pressure on contracted costs for the provision of social care (paragraph 24)

c) Approve the following virements relating to funding changes (paragraphs 27 – 31).

· £3.6m transfer of grant funding from budgets held corporately to Children’s Services.

· £0.8m additional un-ringfenced grants transferred to the in-year contribution to General Balances.

· £2.2m increase in the final notified Business Rates funding and Council Tax surpluses transferred to the Collection Fund Reserve.

d) Note the DSG High Need Block update (paragraphs 32 - 35).

Decision:

Recommendations approved.

Minutes:

The budget for 2025/26 and Medium-Term Financial Strategy (MTFS) to 2027/28 was agreed by Council on 11 February 2025. Cabinet had before it a

report which set out the initial revenue forecast and expected outlook for the financial year and includes updates on:

· financial risks which are being managed in 2025/26;

· savings and investment position; and

· funding notified since the budget was agreed.

Councillor Dan Levy, Cabinet Member for Finance, Property and Transformation presented the report.

Councillor Liz Brighouse addressed the Cabinet and drew attention to the high needs block deficit, urging greater understanding and scrutiny of spending patterns. Councillor Levy noted the deficit was largely due to insufficient government funding, with the statutory override allowing temporary off-balance sheet treatment. Members discussed the exponential increase in EHCP (Education Health and Care Plans) and the potential forthcoming reforms which would aim to address the issues.

Councillor Levy moved and Councillor Leffman seconded the recommendations, and they were approved.

RESOLVED to

a) note the report and annexes.

b) approve a £3.5m transfer from budgets held centrally to Adult Services to meet the financial pressure on contracted costs for the provision of social care (paragraph 24)