URL: https://glostext.gloucestershire.gov.uk/ieDecisionDetails.aspx?ID=2497

Decision Maker: Cabinet

Outcome:

Is Key Decision?: Yes

Is Callable In?: Yes

Purpose: To provide an update on the Quarter 1 forecast for the 2025/26 County Council’s Revenue and Capital Budgets

Content:   Cllr Colin Hay provided an update on Quarter 1 end of year forecast for the 2025/26 County Council’s Revenue and Capital Budgets. He reported on the Council’s performance and risk during Quarter 1 2025/26.   Having considered all of the information, Cabinet noted the report and RESOLVED to:   1. Note the forecast revenue year end position, as at Quarter 1, for the 2025/26 financial year, is an overspend of £224k. 2. Approve the £56.656 million forecast use of reserves. The £56.656 million includes £44.991 million in respect of Dedicated Schools Grant, as well as a net £11.665 million in respect of Useable Revenue Reserves. 3.Approve a drawing of £300k from the Risk & Investment Reserve to fund concept design and policy development in respect of 20 mph speed limits and road traffic speed reduction measures, as set out in paragraph 28. This is included in the Useable Revenue Reserve figure shown in recommendation 2. 4. Approve the transfer of £1.827 million to the Business Rates Retention Reserve to mitigate the potential impact of the Fair Funding Review as set out in paragraph 37. This is included in the Useable Revenue Reserve figures shown in recommendation 2. 5.Note the forecast delivery of £24.702 million savings against a 2025/26 target of £26.434 million, or 93.4% as detailed in section B. 6.Note the Quarter 1 capital expenditure forecast outturn position of £173.989 million, against a reprofiled budget of £174.038 million, as illustrated in section C. 7. In respect of the M5 Junction 10 Improvement Scheme, as set out in paragraphs 59 - 63 and Annex 1: a. Subject to receipt of the funding identified in Annex 1 and negotiations with Homes England, approve an increase of £110 million to the Capital Programme. b. Earmark the use of up to £2m from the Gloucestershire Infrastructure Investment Fund (GIIF) funding pot, control of which transferred to GCC from the LEP. c.Delegate authority to the Chief Executive, in consultation with the Leader, Cabinet Member for Business, Economic Development, Planning and Infrastructure, and Cabinet Member for Finance, Assets & Transformation, to negotiate the resolution of the remaining funding gap with Homes England and enter into any revised funding agreement as necessary. d. Note that expenditure and funding drawdown will be conditional upon securing a mutual agreement with Homes England to fully address the balance of the scheme’s funding shortfall as outlined in Recommendation 7a above. 8. Approve the changes to capital programme of transfers, virements and funding changes, as detailed in paragraphs 64 - 66. 9. Note the Prudential Indicators as explained in section D. 10. Note this report of the Council’s performance and risks. To do this, the following are provided: •Council Strategy updates •Overview of Performance •Performance Scorecard •Risk Scorecard  

Date of Decision: September 17, 2025