URL: https://committees.oldham.gov.uk/ieDecisionDetails.aspx?ID=5542

Decision Maker: Cabinet

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Purpose:

Content: The Cabinet considered a report of the Director of Finance that provided members  with an update, as at 30th June 2025 (end of Quarter 1 2025/26) of the Council’s 2025/26 forecast revenue budget position, the financial forecast of the Dedicated Schools Grant and the Housing Revenue Account (at Annex 1, to the submitted report) alongside the financial position of the capital programme together with the revised capital programme 2025/26 to 2029/30 (at Annex 2, to the submitted report).   In terms of the Revenue Position, the forecast overspend position for 2025/26 at the end of Quarter 1 was estimated to be £20.822m without any mitigation to bring expenditure down. As this financial monitoring report reflected the financial position at the end of Quarter 1, it could be regarded as an early warning of the potential year end position if no further action was taken to reduce net expenditure. As with previous early period monitoring reports, a cautious approach is generally taken when preparing forecasts. In particular, assumptions were made that vacant positions will be filled successfully, which as the year progresses did not always transpire. The management actions initiated in 2024/25 across all service areas had continued into 2025/26 with further mitigations to reduce the in-year pressure identified. Details were included in Annex 1 tot eh submitted report. These mitigations had been, or were in the process of being, implemented and it was anticipated that by the financial year end, the current outturn deficit position should have reduced.   Information on the forecast year end position of the Dedicated Schools Grant (DSG), and Housing Revenue Account (HRA) was also outlined in the submitted report.   Regarding the Capital Position, the submitted report outlined the most up to date capital spending position for 2025/26 to 2029/30 for approved schemes. The revised Capital Programme budget for 2025/26 was £116.579m, at the close of Quarter 1. The actual expenditure to 30th June 2025 was £10.553m (9.05% of the forecast outturn).   Options/Alternatives: a.    To consider the forecast revenue and capital positions presented in the report including proposed changes. b.    To propose alternative forecasts The Preferred Option was Option a.   Resolved: That the Cabinet: 1.    Notes the contents of the report. 2.    Notes the forecast revenue position, at the end of Quarter 1 202526, at £20.822m with mitigations in place to reduce expenditure as detailed at Annex 1, of the submitted report. 3.    Notes the forecast positions for the Dedicated Schools Grant and Housing Revenue Account. 4.    Approves the revised Capital Programme for 2025/26, including the proposed virements and the forecast for the financial years to 2029/30 as at the end of Quarter 1 as outlined in Annex 2 of the submitted report.

Date of Decision: September 22, 2025