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.
Decision type: Key
Decision status: For Determination
Notice of proposed decision first published: 30/12/2025
Decision due: 29 Jan 2026 by Cabinet
Reason: Decision-making Executive committee
Lead member: Deputy Leader of the Council
Lead director: John Betts
Department: Strategic & Corporate Services
Contact: Cath Head, Head of Finance Operations Email: cath.head@kent.gov.uk Tel: 01622 221135.
Consultees
The report will be presented to Cabinet on 29 January 2026
Financial implications: This finance monitoring report sets out the forecast outturn position and the impact on our reserves.
Legal implications: This finance monitoring report sets out the forecast outturn position and the impact on our reserves.
Equalities implications: Equalities implications No direct service impact from the monitoring report– the equalities implications of the savings and management actions will be managed at service level. Data Protection implications None