Decision - Targeted Budget Management (TBM) 2025/26 Month 5 (August)

This report presents the 2025-26 in-year financial performance to Month 5 (August) for noting by Cabinet and seeks approval for any capital variations, reprofiling, exception measures or new reserves.

1) Cabinet notes the forecast risk position for the General Fund, which indicates a potential forecast overspend risk of £9.406m. 2) Cabinet notes the forecast overspend risk for the separate Housing Revenue Account (HRA), which is an overspend of £1.192m. 3) Cabinet notes the forecast overspend risk for the ring-fenced Dedicated Schools Grant, which is an overspend of £2.843m. 4) Cabinet notes the forecast position on the Capital Programme which is an underspend variance of £5.901m. 5) Cabinet approves the capital budget variations and re-profiling requests set out in Appendix 6. 6) Cabinet approves the new capital schemes requested in Appendix 7. 7) Cabinet notes the Treasury Management update as set out in Appendix 8 and summarised in paragraph 9. 8) Cabinet notes the strategic decisions being considered to reshape the city's approach to temporary accommodation and establish long-term financial sustainability and that reports outlining these proposals in detail will be presented to Cabinet for consideration at a future date. 9) Cabinet agrees to extend existing and future lease arrangements for Temporary Accommodation to at least 10 years and 1 day where appropriate, and delegate authority to Corporate Director – Homes & Adult Social Care, in consultation with the Lead Member for Housing, to implement. 10) Cabinet agrees the set of Strategic Aims in Appendix 9 for the purpose of Direct Offers, in effect until 31 March 2026 and reviewed in January 2026.

The Month 5 revenue budget forecast shows a £9.406 million overspend for the General Fund, rated Red. The largest reported pressures include Housing People Services, Adult Social Care, S75 Sussex Partnership Foundation Trust (SPFT), and Housing Benefit Subsidy, while some areas are forecasting underspends.