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202627P03FinancialUpdateReporttoendofJune2026

Committee report · Cabinet · Mon 7 Sep 2026 · Hastings Borough Council · agenda item 9

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Officers are recommending that Cabinet note the Council's forecast Quarter 1 financial position for 2026/27, which shows a balanced revenue outturn with a favourable variance of £208,679 after reserve movements and no need to draw on the General Fund reserve. p3p8p18

Legal Services is forecasting the largest overspend, £195,394, due to increased caseloads, recruitment challenges and the use of agency staff. p9p33p34

Housing Services is forecast to break even after using £205,602 from earmarked reserves, with sustained homelessness demand and pressure on the temporary accommodation market remaining the Council's most significant financial challenge. p10p44

The Council's capital programme has increased to £36.464 million following carry-forwards from previous years and remains broadly on track. p12p80

The PIER (Priority Income and Expenditure Review) savings programme is forecast to achieve £396,854 of its £516,683 target for 2026/27, equivalent to 77%. p11p100p102

Show the 13 passages this is based on
  • p3Recommendation(s) • Note the forecast revenue outturn position for 2026/27, and the actions within the conclusion and management action section.
  • p8Report Template v29.0 Executive Summary The Quarter 1 financial position remains stable, with the Council forecasting a balanced revenue outturn for 2026/27 despite ongoing service pressures. After taking account of earmarked reserve movements and other corporate budget adjustments, the Council is currently forecasting a favourable overall variance of £208,679 and no requirement to draw on General Fund reserves.
  • p9Several service areas are experiencing budget pressures, most notably Legal Services, which is forecasting a £195,394 overspend due to increased caseloads, recruitment challenges, and the use of agency staff. These pressures are largely being offset by favourable variances within Strategic Programmes, Community and Regulatory Services, and Finance and Insurance Services arising from vacancy management, recruitment delays, and shared service arrangements.
  • p10Housing remains the Council’s most significant operational and financial challenge, driven by sustained homelessness demand and pressures within the temporary accommodation market. However, the service is forecast to achieve a balanced outturn through the planned use of reserves, supported by reductions in temporary accommodation placements, strong prevention activity, and continued investment in council-owned accommodation solutions. An ongoing review of Housing Services is examining homelessness demand, prevention activity, temporary accommodation usage, and move-on trends to ensure forecast expenditure remains robust and aligned to operational pressures. The review will support early identification of financial risks and help ensure the service remains financially sustainable within approved budget resources.
  • p11Delivery of the PIER (Priority Income and Expenditure Review) programme continues to progress, with £396,854 of the £516,683 savings target forecast to be achieved, equivalent to 77% of the annual target. While some savings have been delayed, particularly those linked to staffing efficiencies and shared service arrangements, management continues to pursue mitigating actions to maximise delivery during the year.
  • p12The Council's capital programme has increased to £36.464 million following approved carry forwards and remains broadly on track. The programme continues to support key strategic priorities across housing, regeneration, and infrastructure, while ongoing monitoring and reprofiling help manage affordability, borrowing requirements and financial risk.
  • p18Report Template v29.0 5. The Quarter 1 forecast indicates an overall balanced outturn, supported by the planned application of both budgeted and unbudgeted earmarked reserves. After reserve movements, the projected position reflects a net favourable variance of £208,679 against the approved budget, with no forecast call on the General Reserve.
  • p3315. This area is showing an adverse variance of £195,394.
  • p3416. The variance includes an overspend of £195,289 in Legal Services due to insufficient provision for the increased costs and caseloads for legal work relating to housing, licensing, planning, and debt recovery requiring use of agency staff as a resource to cover all vacant posts within the department. Following a review of the service, shared services with Lewes District Council has been successfully implemented.
  • p4423. The Housing Services budget is currently forecast to achieve a balanced outturn for 2026/27 following the approved use of £205,602 from earmarked reserves. At the end of Quarter 1 there are no material adverse variances reported after taking account of the reserve funding. The reserve has been utilised to mitigate the ongoing financial pressures associated with homelessness and temporary accommodation while management continues to implement measures aimed at achieving a sustainable financial position.
  • p8054. Following the inclusion of approved capital programme carry forwards and adjustments of £4.751 million from previous years, the revised capital budget for 2026/27 is £36.464 million. The revised programme reflects the latest delivery profile of approved schemes and provides the basis for ongoing financial monitoring.
  • p10070. The 2026/27 budget required net PIER savings of £516,683.
  • p10272. We are currently forecasting to save £396,854 (77%) by the end of the financial year, from which £388,539 have been identified through continued work around transformation and sharing of services and £8,315 is a saving achieved during the budget setting for 2026/27 related to a software now used as a database information only. The unachieved savings are a result in delays in the progression of salary savings and the waste management shared service agreement.

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