Decision details

Proposed decision –

Cabinet is asked to:

a) NOTE the revenue and capital forecast outturn position for 2025-26 detailed in the report, and accompanying appendices

b) AGREE the capital budget adjustments which will be detailed in the report

c) AGREE the proposed changes to the flexible use of capital receipts strategy in 2025-26

Reason for the decision

The capital and revenue forecast outturn position for the Council needs to be noted by Cabinet.

Adjustments to capital budgets require approval from Cabinet.

The policy on the flexible use of capital receipts was approved by County Council in February 2025.  Cabinet need to agree any changes to this policy as part of the financial monitoring process.

Background

The report on the Council’s latest financial position in 2025-26 will be reported to Cabinet on 29 January 2026. The report provides detail of our revenue and capital forecast outturn positions.

The previous report highlighted the level of the forecast revenue overspend and identified areas where urgent mitigation action was targeted. This report provides an update on those measures.

An additional £7m of capital receipts in 2025-26 can be applied to revenue under the flexible use of capital receipts policy, which will help reduce the in-year overspend.

Options (other options considered but discarded)

N/A

How the proposed decision supports the Council’s Strategic Statement

The Council’s strategic statement, Reforming Kent 2025-28, recognises the significant financial and demand pressures the Council faces, balancing the need to manage spending, deliver savings and generate income, whilst delivering positive outcomes for Kent residents, businesses and local communities.

The Council’s strategic statement acknowledges the significance of adults social care and SEND on the wider KCC budget position and therefore the need for the financial position to presented to Cabinet for consideration on a regular basis. The forecast outturn report for 2025-26 provides the detail of the financial position and the relevant information on the delivery of savings, reserves position and Treasury Management.

The Cabinet agree to:

a)    NOTE the revenue and capital forecast outturn position for 2025-26 as detailed in the report, and accompanying appendices

b)    AGREE the capital budget adjustments detailed in the report

c)    AGREE the use of additional £7m flexible capital receipts and the associated changes to the flexible use of capital receipts strategy for 2025-26