URL: https://sandwell.moderngov.co.uk/ieDecisionDetails.aspx?ID=1150

Decision Maker: Cabinet

Outcome:

Is Key Decision?: No

Is Callable In?: Yes

Purpose:

Content: Cabinet received the forecast outturn position for the 2025/2026 financial year for both revenue and capital budgets, as of 30 September 2025. Approval was also sought for; the increases to fees and charges relating to discretionary services provided by Registration Services; the addition of £1.500m new Pride in Place Impact Fund budget to be added to the General Fund capital programme; and additional budget of £27.718m for new build schemes to be added into the Housing Revenue Account capital programme.   Section 151 of the 1972 Local Government Act required the Chief Financial Officer to ensure the proper administration of the council’s financial affairs. Budgetary control, which included the regular monitoring and reporting of budgets was an essential element in discharging this statutory responsibility. The reporting and analysis of financial performance versus budget supports the financial sustainability of the council.   Reason for Decision The General Fund had a gross budget of £821.682m and a net budget of £365.784m. The overall forecast outturn position for the General Fund, as at Quarter 2, was an underspend of (£0.101m). This was a forecast underspend of 0.01% when compared with net budget. This forecast outturn position excluded ringfenced budgets for the Dedicated Schools Grant (DSG) and Housing Revenue Account (HRA), where variations were managed through ringfenced reserves without impacting on the General Fund. The forecast outturn position also excluded the financial position of the Sandwell Children’s Trust, which was a separate legal entity, although wholly owned by the Council.   The Council’s net budget of £365.784m was split between directorate budgets of £337.951m, that directly delivered Council services, and centrally held corporate budgets of £27.833m, that relate to council-wide matters such as investments and borrowing. In relation to directorate budgets, there was a forecast overspend of £0.590m, following the use of reserves.   Separately from the General Fund, the HRA had a gross budget of £157.023m and a net budget of nil. The position for the HRA was forecast additional net expenditure of £2.317m, which was affordable and which would be offset in full by a contribution from HRA reserves. Also separately from the General Fund, the DSG had a gross budget of £290.911m and a net budget of nil. The position for the DSG was a forecast overspend of £6.593m, £2.696m of which would be offset by DSG reserves, which would therefore result in a deficit balance for the DSG and for the High Needs Block specifically.   In order to return Sandwell Children’s Trust to a financially stable position without any residual deficit, on 4 November 2025, Full Council approved a revised contract sum to be paid to the Trust within this financial year, resulting in additional payments in comparison with the budget available within the Children and Education directorate.   Alternative Options Considered There were no alterative options to consider.   Resolved:-   (1)          that ratification is given to the financial monitoring position as at 30 September 2025 (Quarter 2) and refer the report to the Budget and Corporate Scrutiny Management Board for consideration and comment;   (2)          that approval is given to the increases to fees and charges relating to discretionary services provided by Registration Services, as set out in Appendix 9;   (3)          that approval is given for the addition of £1.500m new Pride in Place Impact Fund budget to be added to the General Fund capital programme, profiled across the 2025/26 and 2026/27 financial years, following notification from the Ministry of Housing, Communities and Local Government (MHCLG) of corresponding grant funding to be received by the Council;   (4)          that approval is given for additional budget of £27.718m for new build schemes to be added into the Housing Revenue Account capital programme, profiled across the financial years 2025/26 to 2029/30, to be funded from ‘right to buy’ receipts, following the MHCLG announcement in July 2025 that extended indefinitely the ‘right to buy’ receipt flexibilities originally announced in July 2024.

Date of Decision: December 10, 2025