Item 10 - General Services Revenue Budgetary Control Report to 31st January 2026 (Period 10)
West Dunbartonshire Council · 25 March 2026
Back to West Dunbartonshire Council — 25 March 2026 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
Page 1
WEST DUNBARTONSHIRE COUNCIL Report by the Chief Officer – Resources Council – 25 March 2026 ___________________________________________________________________ Subject: General Services Revenue Budgetary Control Report to 31st January 2026 (Period 10) 1. Purpose 1.1 The purpose of this report is to advise Council of the 2025/26 Revenue Budget position at 31 January 2026 and the forecast position of the General Fund Reserve as at 31 March 2026. 2. Recommendations 2.1 Council is asked to: I. note the overall favourable variance (underspend) on the General Fund Revenue Budget of £3.146m, an improvement in forecast of £0.091m since last reported (£3.055m). II. note a projected adverse variance (overspend) on the General Services Delivery Budget of £0.311m (0.10% of total budget), an improvement in forecast of £0.124m since last reported (£0.435m). III. note a projected in-year use of earmarked reserves of £2.601m, offset by a transfer in of £6.996m and a transfer from unearmarked reserves of £0.858m thus increasing the overall forecast earmarked balance to £14.196m. 3. Background 3.1 The revised 2025/26 revenue budget presented to Council in December was £312.452m. Since then, the Council has recognised additional revenue support grant which revises the 2025/26 budget as follows: Service £m £m Revised budget as at P7 312.452 Additional Resources: Teachers Pay award Education 0.697 Children’s Social Care Pay HSCP requisition 0.155 SRA Kinship Care HSCP requisition 0.039 25/26 HSCP Payaward* HSCP requisition 0.478 Total Additional Resources 1.369 Revised Budget as at Period 10 313.821 ITEM 10
Page 2
4. Main Issues Service Delivery Position 4.1 The summary report at Appendix 1 highlights a projected adverse variance (overspend) against General Services Delivery of £0.311m (0.10% of the total budget) but an overall favourable variance of £3.146m. This represents a £0.091m improvement in the position reported at P7. This is detailed in the table below. Appendix 2 provides more detailed service reports by Chief Officer, with explanations for the overspend provided in Appendix 3. £m £m Variance at Period 7 (3.055) Movement in Variance Resources: Favourable variance within Audit due to vacancies Increased income from Statutory Additions Reduction in computer software charges Cost of Storm Eowyn Other favourable variances across the service (0.073) (0.248) (0.046) 0.262 (0.054) (0.159) Regulatory & Regeneration: Favourable variance due to vacancies (0.063) (0.063) People & Technology: Reduction in printer lease costs and M365 renewal charges (0.050) (0.050) Education: Increase in employee costs particularly cover Reduction in utility costs Increase in transport costs Reduction in payments to other bodies (eg ASN, clothing grants) Additional income (eg school meals, early start grant) 0.337 (0.121) 0.664 (0.328) (0.073) 0.479 Roads & Neighbourhood: Favourable variance due to vacancies mainly within Ground Maintenance & Street Cleaning Other smaller adverse variances across the service (0.207) 0.040 (0.167) Miscellaneous Services: Underspend on the cost of unoccupied property costs Underspend in relation to Elderly Welfare Grant Payment based on actual number of recipients Other favourable variances across the service (0.085) (0.050) (0.036) (0.171) Citizens, Culture and Facilities: Other service movements less than £0.050m 0.032 0.032
Page 3
Housing and Employability: Other service movements less than £0.050m (0.025) (0.025) Total Movement in Service Delivery variance (0.124) Non GAE Allocation: Following a recent review there is a reduction in the recharge of central support services to non GAE services 0.650 Total Movement in Non-Service Budget 0.650 Income: Additional Revenue Support Grant received for expenditure already built into the budget (0.617) General Fund variance at Period 10 (3.146) 4.2 Information on any projected annual variances in excess of £0.050m after the use of earmarked reserves, are highlighted and noted within Appendix 3, with additional information on action being taken to minimise or mitigate overspends where possible. Earmarked Reserve Position 4.3 Services are anticipating the use of £2.601m (Period 7: £2.754m). Information on the earmarked reserve spend and transfers in are shown in Appendix 4. Appendix 4 has been updated to reflect decisions agreed by Council on 4 March 2026, including earmarking of reserves to balance the 2026/27 budget and agreed use of the Cost of Living Fund. 4.4 On 4 March 2026, the Council agreed to reduce the Council’s General Fund contingency (Prudential Target) from 3% to 2.5% of net expenditure (after requisitions) and amounts to £5.469m, based on 2026/27 estimates. Reducing the Prudential target to 2.5% resulted in a transfer of £0.716m from unearmarked balances to Earmarked reserves to balance the 2026/27 budget. After taking into consideration the forecast favourable position of £3.146m, and the planned use of reserves to balance the 2026/27 budget the Council is currently forecast to be £0.098m above the agreed Prudential Target as at 31 March 2026. 4.5 Appendix 5 shows the latest position in respect of Unallocated and Earmarked Reserves following the budget agreed on 4 March 2026 and shows the projected balance as at 31 March 2026: Unearmarked Balance (£m) Earmarked Balance (£m) Total General Fund Reserves (£m) As at 31 March 2025 3.279 8.943 12.222 In-year service use of reserves (0.311) (2.601) (2.912) Transfer to EMR 0 6.996 6.996 Transfer to/(from) general reserve 3.457 0 3.457
Page 4
Total In-year movement as at Period 10 3.146 4.395 7.541 Transfer to/(from) reserves (0.858) 0.858 0 Projected Balance as at 31 March 2026 5.567 14.196 19.763 Monitoring of Efficiencies 4.6 A list of agreed efficiencies and management adjustments totalling £6.017m is shown within Appendix 6. Current indications show that £5.489m is on target to be achieved. However, Appendix 6 also shows that it is anticipated that £0.528m will not be achieved and will be funded by the smoothing fund. 5. Option Appraisal 5.1 No option appraisal was required for this report. 6. People Implications 6.1 There are no people implications. 7. Financial and Procurement Implications 7.1 The report notes the projected in-year financial position for both General Services revenue and capital budgets. 8. Risk Analysis 8.1 The main risks are as follows: (a) The present variances should be viewed in the knowledge that there are a number of variable factors which could arise between now and 31 March which could affect the year end; (b) As a consequence of current market conditions, capital receipts may either not be received or they may be less than anticipated. The budget assumption is that all capital receipts achieved in 2025/26 will be used for principal and premium repayments within the loan charges budget. Any shortfall in capital receipts below that budgeted amount will adversely affect the revenue budget position. This is being closely monitored and any issues will be reported to Council; (c) As a consequence of current market conditions, inflation remains volatile and interest rates are reducing more gradually than initially anticipated. To forecast for the full year costs budget assumptions have been required (particularly around energy costs and interest rates). These assumptions continue to change regularly and therefore it is likely that the projected year end budgetary position will change from that reported.
Page 5
9. Equalities Impact Assessment (EIA) 9.1 No equalities impact assessment was required in relation to this report. 10. Environmental Sustainability 10.1 No assessment of environmental sustainability was required in relation to this report. 11. Consultation 11.1 All services involved in delivering the revenue and capital budgets have been consulted in the compilation of this report. 12. Strategic Assessment 12.1 Proper budgetary control and sound financial practice are cornerstones of good governance and support Council and officers to pursue the strategic priorities of the Council’s current Strategic Plan. This report forms part of the financial governance of the Council. __________________ Laurence Slavin Chief Officer – Resources Date: 25 March 2026 __________________________________________________________________ Person to Contact: Carol Alderson. Finance Manager Council Offices, Church Street, Dumbarton E-mail: carol.alderson@west-dunbarton.gov.uk Appendices: Appendix 1 - Revenue Budgetary Control 2025/26 – Corporate Summary; Appendix 2 - Revenue Budgetary Control 2025/26 – Chief Officer Summaries; Appendix 3 - Analysis of Revenue Variances over £50,000; Appendix 4 - Monitoring of Earmarked Balances Appendix 5 - Reconciliation of General Fund Reserves Appendix 6 - Monitoring of Efficiencies Background Papers: Ledger output – Period 10; General Services Revenue Estimates 2025/26
Page 6
Wards Affected All Wards