Item 16 - General Services Revenue Budgetary Control Report to 31 August 2025
West Dunbartonshire Council · 29 October 2025
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WEST DUNBARTONSHIRE COUNCIL Report by the Chief Officer – Resources Council – 29 October 2025 ___________________________________________________________________ Subject: General Services Revenue Budgetary Control Report to 31st August 2025 (Period 5) 1. Purpose 1.1 The purpose of this report is to advise Council of the 2025/26 Revenue Budget position at 31 August 2025 and the forecast position of the General Fund Reserve as at 31 March 2026. 2. Recommendations 2.1 Council is asked to note the overall favourable variance (underspend) on the General Fund Revenue Budget of £2.788m. A reduction in forecast of £4.071m since last reported. This is mainly due to the £3.490m discount received following repayment of four long term market loans. Also note the forecast unallocated reserve balance of £6.379m which is £0.289m above the prudential target. 2.2 Council is asked to note a current projected adverse variance (overspend) on the General Services Delivery Budget of £0.702m (0.22% of total budget), a reduction in costs of £0.580m since last reported. More details are provided in section 4.1 and the appendices 1-3. 2.3 Council is asked to note the current projected use of earmarked reserves of £2.304m offset by the release of £0.078m and the forecast earmarked balance of £10.862m. More details are provided in section 4.4 and appendix 4. 3. Background 3.1 At the meeting of West Dunbartonshire Council (the Council) on 5 March 2025, members agreed the revenue estimates for 2025/2026. A total net budget of £311.491m was approved for General Services. 3.2 The 2025/26 budget included a 3% pay award assumption across all workforce categories. The pay award for SJC and Chief Officers has now been agreed at 4% for 2025/26 and 3.5% for 2026/27 and at this stage, the expectation is that the increased cost of the 2025/26 pay award for all council services employees will be fully funded from additional Scottish Government grant funding, with no impact on the financial position of the council in 2025/26. This development has been reflected within the budget monitoring position and additional resources added to fund the pay award. ITEM 16
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Service £m £m Agreed budget 6 March 2025 311.491 Additional Resources: All 0.772 Total Additional Resources 0.772 Revised Budget as at Period 5 312.263 4. Main Issues Service Delivery Position 4.1 The summary report at Appendix 1 highlights a projected adverse variance (overspend) against General Services of £0.702m (0.23% of the total budget). Appendix 2 provides more detailed service reports by Chief Officer. The main reason for the movement in the outturn from Period 3 is detailed in the table below with explanations for the overspend provided in Appendix 3. Non-Service Budget Position 4.2 Loan charges are showing a £3.490m favourable variance against budget as a result of the Council’s Finance Team, in conjunction with our Treasury Advisers (MUFG), identifying an opportunity to terminate £33.1m of long-term fixed rate loans in return for a discounted repayment amount. The four loans were due to mature between 2064 and 2078. More information on the one-off financial benefit this has delivered is detailed in the Finance Update presented to this same Council meeting. 4.3 Information on any projected annual variances in excess of £0.050m are highlighted and noted within Appendix 3, with additional information on action being taken to minimise or mitigate overspends where possible.
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£m £m Adverse Variance at Period 3 1.282 Movement in Variance Resources: Favourable variance within employee costs due to vacancies within Corporate Assets. (0.061) (0.061) Regulatory & Regeneration: Favourable variance within employee costs due to vacancies across the service. (0.096) (0.096) Education: Breakfast club income higher than budget Favourable variance in ASN external payments Favourable variance in NDR Favourable variance in employee costs as a result of vacancies across the service (0.050) (0.078) (0.156) (0.084) (0.368) Roads & Neighbourhood Services: Adverse Variance as a result of the re- introduction of grass cutting (Agreed August 25) Favourable variance within employee costs due to vacancies in grounds Maintenance. Adverse variance due to increased wate tonnage Favourable variance within Working 4 U as a result of achieving savings earlier than planned. Other adverse variances across the service 0.240 (0.051) 0.067 (0.236) 0.025 0.045 Housing & Employability: Favourable variance within employee costs within the homelessness service due to vacancies. (0.099) Other service movements less than £0.050m (0.01) (0.01) Net adverse Service Delivery variance at Period 5 0.702 Non-Service Budget Loan charges Favourable variance due to discount received following repayment of four long term market loans. (3.490) (3.490) Net General Fund variance at Period 5 (2.788) Earmarked Reserve Position 4.4 Services are anticipating the use of £2.304m (Period 3: £1.604m) of earmarked reserves offset by £0.078m release in year. In addition, as a result of the reduction in contribution to Strathclyde Pension Fund a forecast £4.294m will be transferred to the pension smoothing reserve. Information on the earmarked reserve spend is shown in Appendix 4.
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4.5 The Council’s General Fund contingency (Prudential Target) is set at 3% of net expenditure for 2025/26 and amounts to £6.090m. After taking into consideration the forecast favourable position of £2.788m, the Council is currently forecast to be £0.289m above the current Prudential Target as at 31 March 2026. 4.6 Appendix 5 shows the latest position in respect of Unallocated and Earmarked Reserves 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 3.513 8.950 12.463 Projected in year use of reserves by General Services (0.702) (2.304) (2.906) Release of EMR 0.078 (0.078) Discount on Loans 3.490 3.490 Forecast in-year movement – Pension Saving 0.000 4.294 4.294 Projected Balance as at 31 March 2026 6.379 10.862 17.241 Monitoring of Efficiencies 4.7 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;
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(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. 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: 28 August 2025 __________________________________________________________________ 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
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– 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 Efficiencies Appendix 5 - Reconciliation of General Fund Reserves Appendix 6 - Monitoring of Earmarked Balances Background Papers: Ledger output – Period 3; General Services Revenue Estimates 2025/26 Wards Affected All Wards