URL: https://democracy.croydon.gov.uk/ieDecisionDetails.aspx?ID=2689

Decision Maker:

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Purpose: The Period 9 (December 2025) financial performance for General Fund revenue shows a forecast underspend of £26.2m against the 2025-26 budget.  This is an improvement of £0.5m since Period 8.   Across London most local authorities (24 out of 32) are forecasting a General Fund overspend owing to demand and cost pressures experienced across the local government sector.  The average is an overspend of £8m, rising to £13m if the underspending and breakeven councils are excluded from the calculation.   The Council is forecast at Period 9 to achieve £26.8m of the Stabilisation Plan target in addition to £21.9m of the Medium Term Financial Strategy (MTFS) savings.  A forecast total of £48.7m cost efficiencies and income generation.   The General Fund capital programme shows a forecast underspend of £3.1m.   The Housing Revenue Account (HRA) shows a revenue forecast breakeven position for 2025-26. The HRA capital programme shows a forecast underspend of £3.8m.     Financial Performance Summary Table Financial Performance Area 2025-26 Budget   (£m) 2025-26 Forecast   (£m) 2025-26 Forecast Variance (£m) 2025-26 Forecast Variance (%) Revenue Forecast (General Fund) 375.8 349.6 (26.2) (7.0%) Revenue Forecast (Housing Revenue Account) - - - N/A Capital Forecast (General Fund) 214.5 211.4 (3.1) (1.4%) Capital Forecast (Housing Revenue Account) 108.5 104.7 (3.8) (3.5%)      

Content: The Period 9 (December 2025) financial performance for General Fund revenue shows a forecast underspend of £26.2m against the 2025-26 budget.  This is an improvement of £0.5m since Period 8.   Across London most local authorities (24 out of 32) are forecasting a General Fund overspend owing to demand and cost pressures experienced across the local government sector.  The average is an overspend of £8m, rising to £13m if the underspending and breakeven councils are excluded from the calculation.   The Council is forecast at Period 9 to achieve £26.8m of the Stabilisation Plan target in addition to £21.9m of the Medium Term Financial Strategy (MTFS) savings.  A forecast total of £48.7m cost efficiencies and income generation.   The General Fund capital programme shows a forecast underspend of £3.1m.   The Housing Revenue Account (HRA) shows a revenue forecast breakeven position for 2025-26. The HRA capital programme shows a forecast underspend of £3.8m.     Financial Performance Summary Table Financial Performance Area 2025-26 Budget   (£m) 2025-26 Forecast   (£m) 2025-26 Forecast Variance (£m) 2025-26 Forecast Variance (%) Revenue Forecast (General Fund) 375.8 349.6 (26.2) (7.0%) Revenue Forecast (Housing Revenue Account) - - - N/A Capital Forecast (General Fund) 214.5 211.4 (3.1) (1.4%) Capital Forecast (Housing Revenue Account) 108.5 104.7 (3.8) (3.5%)       For the reasons set out in the report, the Executive Mayor and Cabinet AGREED to:   2.1Note the General Fund revenue budget outturn is forecast at Period 9 to underspend at financial year end by £26.2m, contributing to the target as required by the Stabilisation Plan.  This would reduce the necessary level of capitalisation directions from £136m to £109.8m.   2.2Note that service directorates have been asked to reduce their net expenditure below their budgets so that the annual budget can be balanced with reduced use of capitalisation directions, including achievement of the £27.3m Stabilisation Plan target as set out from paragraph 5.9.   2.3Note the unfunded local government cost pressures that exist nationally, regionally and locally relating to increases in demand and market prices which need to be addressed by Government changes to policy and/or funding levels.   2.4Note the progress in Medium Term Financial Strategy (MTFS) savings achievement of £21.9m (87.3%) against the total savings target of £25.1m as set out from paragraph 5.127.   2.5Note the Housing Revenue Account (HRA) revenue budget forecast outturn is a breakeven position.   2.6Note the General Fund capital programme 2025-26 forecast underspend of £3.1m (1.4%) against the revised budget of £214.5m.  The capital budget includes expected capitalisation directions of £108.7m (£136.0m less the Stabilisation Plan target underspend of £27.3m).  £26.8m is evidenced to date at Period 9 against the Stabilisation Plan with directorates continuing to reduce their net expenditure wherever possible.   2.7Note the HRA capital programme 2025-26 forecast underspend of £3.8m (3.5%) against the revised capital budget of £108.5m.   2.8Note the Council’s historic borrowing and subsequent debt burden and national, regional and local service pressures continue to be critical to the non-sustainability of the Council’s revenue budget as set out from paragraph 5.147.   2.9Note that the Council continues to operate Spend Control Panels, and tightened the criteria from July 2024, to ensure that stringent financial control and assurance oversight are maintained.   2.10      Note that current forecasts are based on the best available information at the time and will be subject to review and change during the financial year.    

Date of Decision: March 25, 2026