NORTH YORKSHIRE COUNCIL

EXECUTIVE

26 MAY 2026

QUARTERLY PERFORMANCE AND BUDGET MONITORING REPORT

Joint Report of the Chief Executive and

Corporate Director – Resources

EXECUTIVE SUMMARY

1.0       Background

1.1       The Quarterly Performance and Budget Monitoring Report seeks to bring together key aspects of the Council performance on a quarterly basis. The Summary below captures the key points in this Quarterly update as set out in the main body of the attached report.

2.0       Performance

2.1       The quarter 4 performance report covers the period 1^st January 2026 to the 31^st March 2026 providing a comprehensive picture of performance across North Yorkshire.

3.0       Revenue Budget 2025/26

3.1       At the end of Q4, there is a net overspend of £1,020k against the 2025/26 budget (paragraph 2.2.1). Despite including growth of £12.0m in the 2025/26 budget for Children & Young People’s Services, the increasing demands in the service has led to a significant overspend of £16.2m gross. A number of funding sources (some of which are one-off in nature) are being applied to offset the forecast overspend from £16.2m to £11.3m.  

3.2       The key drivers of the financial position are outlined in the sources set out below: 

1. A breakdown of each Directorates forecast variance is provided in Appendices B to F with the financial position for NYES provided in Appendix G.

2. A detailed HRA forecast outturn position is provided in Appendix H which is reporting a £6,492k deficit.

3. Recommendation to make a Voluntary Revenue Provision contribution to Capital Financing Costs which will result in a revenue saving (paragraph 2.2.6).

4. Recommendation to create a £7m Reserve to provide for the potential non-repayment of loan to Brierley Homes (paragraph 2.2.6 and paragraph 2.6.7).

5. An overview is provided on spending relating to the transition to the new unitary council (section 2.5).

6. The balance of the Strategic Capacity Reserve following the drawdown to balance the outturn position to budget (paragraph 2.5.2).

4.0       Annual Treasury Management and Prudential Indicators

4.1       For North Yorkshire Council External debt stood at £350.4m at 31 March 2026. The average interest rate of this debt was 3.74% (paragraph 3.7).

4.2       Investments outstanding at 31 March 2026 were £640.1m of which £120.6m belonged to other organisations who are part of NYC’s investment pool arrangements. (paragraph 3.43 & Appendix A).

4.3       For cash invested the average interest rate achieved in 2025/26 was 4.38% which above the 7 day benchmark rate of 4.02% and above average bank rate of 4.04%. (paragraph 3.34).

5.0       Capital Plan

5.1       Overall capital expenditure for 2025/26 is £219.3m against a budget of £268.8m – an underspend of £49.5m.  When capital receipts and grants are taken into account, the net position shows an underspend of £3.3m (paragraph 4.3.1).

5.2       A total carry forward of £49.5m worth of schemes (gross) to 2026/27 is required (paragraph 4.4.2).

5.3       Financing of the 2025/26 capital plan is largely through grants, contributions and revenue contributions with the remaining element of £8.8m being funded from internal and external borrowing (paragraph 4.5.1).

5.4       A total of six funding recommendations are presented for Executive approval:

1. to approve the allocation of £200k from the Capital Contingency Reserve to fund the shortfall affecting the Catterick Garrison Levelling Up project as set out in paragraph 4.3.2.

2. to approve the allocation of £823k from the Whitby Harbour Reserve to fund the fitting out of floors one and two of the Whitby Maritime Hub and a further £126k to meet additional construction costs as set out in paragraph 4.3.3.

3. to approve the allocation of £750k from the Strategic Capacity Unallocated Reserve to support the Strategic Land Programme as set out in paragraph 4.3.5.

4. to approve the allocation of £350k from the Strategic Capacity Unallocated Reserve to fund the acquisition of Crosby Road Car Park, Northallerton, as set out in paragraph 4.3.5.

5. to approve the allocation of up to £3m from the Strategic Capacity Unallocated Reserve to fund the acquisition of leisure equipment to be used in the Active and Well Being Hubs across the county as set out in paragraph 4.3.5.

6. to approve the allocation of £250k from Strategic Capacity Unallocated Reserve to fund the feasibility costs associated with the identification of potential accommodation arrangements that will eliminate any unregulated/unregistered provision as set out in paragraph 4.3.5.

RICHARD FLINTON Chief Executive County Hall Northallerton 26 May 2026

GARY FIELDING Corporate Director, Resources

Contents

1.0       2025/26 Quarter 4 Performance Commentary

2.0       Revenue Budget 2025/26

3.0       Treasury Management

4.0       Capital Plan

5.0       Legal Implications

6.0       Consultation and Responses

7.0       Conclusions and Recommendations