'We will have a balanced budget': Peterborough City Council remains confident financial position will improve

The authority’s budget control report for the second quarter of 2025/26 revealed a forecast £6.1 million overspend on the £233 million net revenue budget by the year end, compared to a predicted £5.2 million after the first quarter.

“The overspend is primarily being driven by delays to delivering the ambitious savings programme, and higher than estimated costs of capital financing (borrowing),” the report stated.

“Should this position materialise at the end of the financial year the council would be required to use the General Fund to cover the overspend.”

It was heard at a cabinet meeting on November 18 that 41 per cent of the council's savings targets were at moderate to high risk of not being delivered.

Cllr Jamil told members: "We are actively monitoring these and implementing mitigations where possible."

Cabinet member for communities, poverty and public health Cllr Zameer Ali, asked what the likelihood was of the council achieving a balanced budget.

"I don't want to say we are overconfident, but by the end of the year we will have a balanced budget," Cllr Jamil responded.

"We are putting things in place to ensure we are heading in the right directions. Fairer funding will have a big say on this."

The fairer funding model is part of the government's plans to reform how councils are funded and ensure that left-behind places receive the funding that they need.

Christine Marshall, Peterborough City Council's chief finance officer, told cabinet members that the authority was hoping for a three-year settlement which recognised the city's population growth, deprivation and ability to raise council tax.

She added: "We're extremely hopeful that through [fairer funding] we will get a better settlement for the city.

"That could be transformational in terms of the budget and mean we are in a substantially better situation than where we are at the moment.

"We await those announcements with extreme interest."

Ms Marshall hoped that specific figures on this would become known by Christmas.

She added: "That is a next year situation. In terms of this year, we are lifting every stone and looking at every opportunity to pull in the overspend as it sits at the moment."

Cllr Ali asked if Ms Marshall felt the council's savings were too ambitious.

She responded: "They were very ambitious, as were the previous years' savings.

"That is something we are certainly taking the learning into for the setting of the 2026/27 budget."

In terms of reserves, the current forecast leaves the city council's reserves vulnerable with balances reducing to just below £19 million, of which £4.2 million is ring-fenced for specific use.

The budget control report stated: "Focus firmly remains on managing pressures and sourcing mitigating solutions, efficiencies and savings in both the current and future year to improve the financial position."