Issue - meetings

The Assistant Director of Finance and Customer Services presented the report on Council Funding and Support for Rubicon Leisure.

In doing so, Members were updated on the Medium-Term Financial Plan, 2023/24 and 2024/25 annual accounts, stabilisation of the Council’s Finance service and TechOne recovery.

Members were informed that the Council was progressing through the 2026/27 budget setting process, which involved consultation with Councillors, including through the Scrutiny process. Any relevant actions from the Chancellor’s autumn budget on 26th November 2025 would be factored in as well as the provisional Local Government Settlement which was due to be announced before Christmas. Following this, the Council was due to set its annual budget for 2026/27 at its meeting scheduled for 23rd February 2026.

As part of the budget setting process, a significant number of Capital bids relating to Rubicon Leisure Limited had been included. A number of these bids were initiated by Rubicon Leisure Limited with the aim to increase revenue while other bids were related to the maintenance of Council-owned assets.  The Capital bids totalled approximately £4.4 million. It was highlighted that the Council was currently considering the bids, but it was not possible to say whether they would be affordable at this point.

It was confirmed that the Council had published all the outstanding statements of accounts. The draft 2023/24 accounts had been published and were being audited by Ernst and Young (EY), the newly appointed external auditors for the Council. It was expected that the accounts would receive a disclaimed opinion from EY.

It was reported that the 2024/25 accounts had also been published in a draft format in compliance with the June 2025 deadline. It was anticipated that EY would complete their audit with the issuance of an opinion by the statutory backstop date of 27th February 2026. Members were advised it was expected that those accounts would also be disclaimed. A value for money assessment was ongoing.

The Council was up to date in terms of VAT returns. Engagement had been carried out with external tax consultants to assist with returns and review any historic issues. Members were reassured that ongoing dialogue with HM Revenue and Customs (HMRC) was continuing regarding any outstanding historical problems. 

The Finance Stabilisation programme was reported to be underway. Interim resources had successfully been recruited into key roles within the Finance team to resolve immediate pressures. The process had been initiated to evaluate posts for permanent team members, such as a Financial Services Manager.

In terms of support for Rubicon Leisure Limited, conversations had taken place regarding an additional resource with a small element of the role to assist with Spadesbourne in Bromsgrove. It was hoped this would ease pressures and an appointment would be made during the current financial year.

An update was provided on the TechOne system. Members were informed that there had been a full review of the system and the results from a health check had been received. It was confirmed that the Council would move forward with  ...  view the full minutes text for item 10