Agenda item

To consider the report of the Director of Finance (copy enclosed).

The Committee considered the report of the Director of Finance providing an updated financial position for the period ended 31 December 2025 (Period 9). Members noted that this was not the standard quarterly update but helped to provide background information regarding planning for future years budgets.

The Director of Finance presented the report which provided an update on a number of areas including the following:

·                Revenue Budget Monitoring (Period 9), including the underspend against the 2025 / 26 budget for operating activities. It was reported that operating costs were forecast to be below the net expenditure estimates in the budget and combined with additional unbudgeted grant expenditure the planned use of £572k from general reserves included in the budget was not expected to be required. A nil forecast was therefore being shown. This meant that the general fund reserves would be retained at a higher level than previously estimated and Appendix 1 to the report provided further details.

·                Capital budget monitoring (Period 9) Appendix 2 to the report provided details of the main projects which was substantially unchanged from period 8. The report detailed a list of projects completed during the year to December 2025.

·                The report also provided an update delivery against the five largest projects up to 31 December

·                General Fund Creditors and Debtors – Payments to suppliers were usually taken as soon as the payment was authorities and a table at paragraph 3.7.1 highlighted the percentage of invoices paid within 30 days.

Outstanding debt for general fund activities at as 31 December 2025 was set out at paragraph 3.7.2 and Members’ attention was drawn to the level of debt being pursued (over 55 days). It was noted that of this debt £88k has been based to a debt collection agency, £44k had a payment plan in place and £30k had been paid since 31 December 2025. All debt was actively pursued, and write-offs only took place where all options had been pursued.

·                Reserves – Appendix 3 to the report detailed the movements on Earmarked Reserves for 2025 / 26.

·                Revenue Budget Reconciliation – Appendix 4 to the report provided detail of the revenue budget reconciliation between the opening and closing budget.

The Chairperson moved the recommendations as set out in the report. This was duly seconded.

In response to questions raised, the Director of Finance provided the following information:

·                details of monies passed to debt collectors, the level of collection and how the related costs were taken from the amounts collected. Along with the Finance Team, the Director sought to ensure that all debt was collected in a timely way. In response to the discussion the Director agreed to bring back further detail on debt including debt more than two years old and the related costs to the Council.

·                the Council’s budget provided a contingency relating to the cost for setting up Local Government Reorganisation (LGR). Members’ attention was drawn to Appendix 3 which detailed Earmarked Reserves and provided some commentary in respect of ‘used costs incurred relating to LGR’. The 2026 / 27 budget papers contained provision to top-up this reserve if required. The Director informed the Committee that he was comfortable with the current position, explaining that if there were costs that transpired and accounted for within the current financial year, they would be met by a drawdown from reserves, as appropriate. The Director advised he would highlight this information in the outturn report due to be considered by the Committee in June 2026.

The Chairperson put the recommendations set out in the report and upon a vote being taken these were duly agreed.

RESOLVED that the Committee:

(i)             notes that the forecast revenue expenditure outturn as at 31 December 2025 is £20k over budget against the net service budget of £14.114m; also that the improved income position in a number of areas means that use of general reserves can be avoided. Further information can be found at section 3 and Appendix 1 to the report along with reasons for significant variances.

(ii)            notes the forecast capital expenditure outturn as at 31 December 2025 which is for a total capital programme delivery of £5.654m against revised budget of £6.980m, and the details of schemes completed in the year so far (paragraph 3.3.4 to the report). Further information can be found at Appendix 2 to the report along with reasons for significant variances.

(iii)           approves the movements in Earmarked Reserves set out in Appendix 3 to the report;

(iv)           notes the revenue budget reconciliation between the opening and current budget in Appendix 4 to the report.