Agenda item

The Assistant Director for Finance and Customer Services presented the Quarter Two Finance Monitoring 2025/26 report.

Members were advised that a revenue overspend of £381,000 was forecast for the financial year. For comparison, at the same point in the previous year, the Council had reported a £299,000 variance, which was successfully mitigated.

It was reported that £1.806 million had been spent on the capital programme against an annual budget of £8.082 million. Capital expenditure figures related to significant projects, including the Innovation Centre and Public Realm improvements funded through the Town Deal and UK Shared Prosperity Fund. The construction of the Innovation Centre was scheduled to be completed in March 2026.

The revenue position had moved adversely by £361,000 since Quarter One. This was largely due prudent adjustment to bereavement income levels, additional expenditure on Community Transport, costs relating to the installation of a new fire alarm system and additional insurance costs for Rubicon buildings. This had partly been offset by additional income in Development Control and additional Housing Subsidy income.

Of the £2.342 million annual savings target, £1.197 million had been achieved, mainly through vacancy management (£844,000) and efficiency measures (£138,000). It was noted that the Council was performing well in terms of savings and it was hoped that a good position would be reached by the end of the financial year.

Members were informed that there had been no new short-term borrowing. The Council had long-term borrowing commitments of £103.9 million in respect of the housing stock in the Housing Revenue Account (HRA) and £5.8 million in short-term investments.

Council tax collection stood at 55.36% and business rates collection at 51.53% against a target of 53.92% for this quarter. Benefits processing was performing well, averaging 15 days for new claims and 7 days for changes.

It was noted that 25 contracts exceeding a value of £200,000 were scheduled for procurement within the next 12 months, ensuring strategic resource planning. Overall, while financial pressures remained, the Council was managing its budget effectively and progressing on key capital projects.

Members thanked the Assistant Director for Finance and Customer Services and her team for the comprehensive report and their proactive financial management. It was acknowledged that Quarter Two typically performed less strongly, however the Council was well positioned to reduce the overspend and would continue to monitor trends closely.

The resolutions were proposed by Councillor Ian Woodall and seconded by Councillor Sharon Harvey. 

RESOLVED to note

1)    that there was a forecast revenue overspend position of £381,000 at Quarter 2;

2)    the current Capital spending of £1.806 million against a budget of £8.082 million;

3)    the current savings delivery was £1.197 million against an annual target of £2.342 million for 2025/26;

4)    Earmarked Reserves were £27.117 million;

5)    the Ward Budget allocation position to date was 20 approved allocations at £25,700, leaving a balance of £28,300 to be allocated before year end;

6)    there was an updated procurements position with any new items over £200,000 to be included on the Executive Committee’s Work Programme;

7)    the position on Council Tax and Business Rates;

8)    the position on benefits processing; and

 RECOMMENDED that

9)    the Balance Sheet Monitoring Position for Quarter 2 be noted which was the Treasury Monitoring Report and required to be reported to Council;

10) the Council’s Treasury performance for Quarter 2 of the financial year 2025/26 be noted; and

11)the position in relation to the Council’s Prudential indicators be noted.