Further Detail

The Head of Finance provides the routine finance report which outlines the year to date and forecast position for the revenue, capital, and reform budgets.

Appendix A provides the detailed Quarter 1 (Q1) finance report.

Revenue
• The Q1 net expenditure forecast is in line with budget and funding.

• The Q1 forecast position presents a number of challenges, particularly when viewed in the context of the emerging cost pressures. Key risk areas include overtime, ill-health pension costs and non-pay expenditure.

• Pay negotiations for 2025-26 are also ongoing, the outcome of which will have an impact on the final outturn position.

• The forecast will be closely monitored alongside the financial threats and opportunities detailed on page 19 of Appendix A, some of which may crystalise as we move towards the Q2 forecast.

• The year-to-date actual position is £1.1m under budget.

Capital
• The capital forecast at Q1 is £71.3m, £0.3m above the budget position of £71.0m. The forecast overspend is fully funded by additional capital receipts and other grants.

• Budget holders presented their capital delivery plans to Capital Planning Task Force (CPTF) and any updates are reflected in the Q1 forecast.

• The capital forecast at Q1 requires £8.9m of slippage to be achieve throughout the year.

• Finance are engaging regularly with business areas to support delivery of their capital plans, and to ensure there is a pipeline of spend to be brought forward if there is any significant slippage on capital plans.

• The year-to-date capital spend at Q1 is under budget by £2.2m (net of slippage).

Reform
• The reform forecast at Q1 of £20.7m, £0.4m (fully funded) above the budget position of £20.3m.

• The Q1 reform forecast has removed £7.8m of the £16.2m overprogramming included as part of the approved budget, leaving £8.4m of slippage still to be achieved across the remainder of the year.

• The year-to-date reform spend at P3 is over budget by £0.5m (net of slippage).