Agenda item

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 the re-installation of parts of the system that had not been in use.

It was noted that there were challenges when the system had originally been installed but functionality was now much better. The Council would look forward in terms of re-installation with a fully resourced plan; this would incorporate the unique requirements that Rubicon Leisure Limited had. It was confirmed that a Project Manager would be appointed to ensure the appropriate resources were in place. Input would also be sought from those who would be using the system as well as the incorporation of lessons learned from the previous installation of the system.

Members were advised that a further update was due to be provided at the following Shareholders Committee meeting.

In discussing the item, Members commented on the following points:

·       Members queried whether a test run of the TechOne system could be completed as part of the project management process before it was rolled out to service users and staff. Officers confirmed that the new elements of the system would run concurrently with the old system before moving forward. Members were reassured that if concerns were raised that the new system was not operational, officers would advise that the full re-instatement should not go ahead. Members further queried how long the systems would be running simultaneously to ensure the new system was performing properly. Officers advised that the time period would be set out in advance as well as the key criteria for measuring performance.

·       Queries were raised around the costs involved in re-installation of parts of the TechOne system and what the Council would be expected to pay. It was confirmed that a meeting with TechOne was scheduled to be held on the following day, 2^nd December 2025, and clarity would be sought around resourcing. Officers advised the expectation was that TechOne would meet the required costs. However, the Council would be liable for some of the costs, including funding a Project Manager and back filling staff in the Finance team.

·       Members asked how the Capital bids would be assessed as the Council did not have the funds to grant all the bids that had been applied for. Officers informed Members that the Capital bids received from Rubicon Leisure Limited had been prioritised accordingly by the relevant service areas, and Health and Safety had also been taken into consideration. It was confirmed that the successful bids were scheduled to be announced after Christmas. 

·       A query was raised about the impact of the delays with TechOne on Rubicon Leisure Limited as a commercial business. It was clarified that Rubicon Leisure Limited was currently having to use their own income reports for financial management and didn’t always have access to accurate information through TechOne. It was noted that the current situation was impacting on Rubicon Leisure Limited’s resources as they were having to manually process data which was not time efficient. 

RESOLVED that

the report be noted.