Issue - meetings

The Cabinet Member for Finance and Corporate Operations introduced the report.

The report provided an update on emerging financial risks and asked the Cabinet to agree the early strategic direction for setting the Council’s 2026/27 budgets.

In response to questions from the Leaders of the Liberal Democrat and Green Party, the Cabinet Members for Finance and Corporate Operations and Housing and the Chief Finance Officer said the following:

      i.         Noted that the comment that the use of the Members’ Finance Working Group was welcomed.

    ii.         Officers appreciated engagement with the Members' Finance Working Group on the design of the consultation before it was made public. 

   iii.         The significant year-end overspend on the Housing Revenue Account had arisen from a combination of factors. The previous year was the first which the full impact of Awaab’s Law was experienced, and demand pressures had been underestimated during budget forecasting. Forecasts were based on the Quarter 2 position, and the seasonal nature of demand, particularly over the winter period, had not been fully anticipated. Lessons had been identified to improve forecasting in future years.

  iv.         Approximately £3 million of the overspend related to clearly identifiable one-off pressures, such as the waking watch and incidents at a number of housing blocks. As a result, around half of the total overspend could be attributable to exceptional, non-recurring expenditure.

    v.         Work was ongoing with the service to bring expenditure back into line with the approved budget. The additional investment approved by the Council had not been limited to increasing repairs budgets but had also funded improvements to staffing processes and contract management arrangements.

  vi.         It was recognised that the benefits of these measures would take time to be realised. An updated position on performance against budget would be provided in the Quarter 1 Monitoring Report to Cabinet in September.

 vii.         Noted that comment that it was important for all forty-two councillors to feel empowered and able to scrutinise the Council’s finances.

viii.         Noted comments that concerns regarding the under-reporting of housing repairs had been raised by the Green Group’s housing spokesperson, supported by evidence from tenant representatives, void property data and customer audits.

  ix.         Improvements had been made to financial reporting, noting that the quarterly performance reports were designed to be accessible and understandable to all. The revised format provided greater transparency and made it easier for all Members and residents to understand the Council's financial position and performance.

    x.         The involvement of Members in budget discussions at an earlier stage could only be seen as a positive development.

  xi.         Encouraged all Members to engage with the quarterly performance reports and associated performance indicators, highlighting their value in improving understanding of the Council's financial and operational performance.

 xii.         In relation to housing repairs, residents should be encouraged to report issues. The housing condition survey and tenancy audit provided important sources of information and helped Officers to identify issues that may not otherwise be reported through standard channels.

xiii.         Progress had been made in relation to housing repairs, particularly in addressing damp, mould and condensation issues. Efforts were continuing to support residents in getting necessary works completed as quickly as possible.

xiv.         Officers were working to bring responsibility for damp, mould and condensation work back in-house. This would give greater control over service delivery and enable repairs to be carried out more promptly.

xv.         Highlighted the importance of fulfilling regulatory requirements, including undertaking stock condition surveys. These surveys identified additional maintenance requirements and provided information to support effective asset management and ensure that properties continue to meet required standards.

xvi.         Highlighted an error on paragraph 6.9 and 6.10, p35 of the agenda pack, the meeting dates quoted in 2026 should be 2027. 

Cabinet unanimously resolved to:

      i.         Note the economic update and emerging pressures set out in sections 4 and 5. 2 of the Officer’s report.

    ii.         Agree the high-level approach to budget setting for 2027/28 set out in section 6. 3 of the Officer’s report.

   iii.         Agree the high-level approach to public consultation set out in section 8 of the Officer’s report.