URL: https://democracy.newport.gov.uk/ieDecisionDetails.aspx?ID=500000012&LLL=0

Decision Maker: Cabinet

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Purpose:

Content: The Leader introduced the financial forecast for July 2025, which indicated a £310k revenue underspend overall. Service areas excluding schools were projected to overspend by £5.2m, primarily due to demands in Social Services, Housing and Communities, and Education. These overspends were balanced by underspends in non-service areas such as Capital Financing. Schools faced a separate £4.2m overspend funded from their reserves, which raised concerns about potential deficits that required close monitoring. Financial uncertainties remained regarding teacher pay funding, increased service demands, and possible additional grants. In relation to reserves, 4 new reserves have been earmarked, as well a requirement to provide a top up to an existing one. An initial £300k investment into the CCTV programme as combined with the Smart City initiative was announced alongside a £150k reserve for the Digital City project preliminary research.   Decision:   Cabinet - ·        Noted the overall budget forecast position outlined within this report. ·        Noted the current overall shortfall in the delivery of the 2025/26 revenue budget savings. ·        Noted the overall position in relation to schools, acknowledging the risk that further individual deficit positions could emerge by the end of the financial year. ·        Noted the forecast movements in reserves. ·        Approved the recommendation to allocate funds to a new earmarked reserve, as set out in sections 4.5 and 4.6. ·        Approved the reprofiling of the Eliminate reserve as set out in paragraph 4.7 of the report. ·        Noted the risks identified throughout the report and in the Head of Finance comments, such as in relation to demand issues being faced.

Date of Decision: September 10, 2025