Agenda item

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

The Committee considered the report of the Director of Finance providing the final (outturn) financial position for the period year to 31 March 2026 (period 12).

The Director of Finance thanked budget managers for their work and presented the report which provided an update on a number of areas including the following:

·                Revenue Budget Outturn (Period 12) - The outturn for this budget was an underspend of £133,000 attributable to additional income from investments, car parks and planning activities and further detail was set out in Appendix 1 to the report. Salary underspend had been used to fund interim and temporary staff costs and the overspend in Finance Services was due to prior years’ corporate savings being included in these budgets.

·                Significant Changes During the Year - A number of key developments had been undertaken during the year which included the Local Government Reorganisation proposals, the first year of the new Leisure Services Contract and restructure of staff. The report provided further detail in respect of each key development.

The Director of Finance advised that the pension strain total figure shown at paragraph 5.4.10 of the report was incorrect and should be £531,000. This was noted.

·                Activity Levels – The report included a number of charts which provided background information on some of the high-profile areas of activity and therefore key drivers of overall cost.

·                Capital Budget Monitoring - Outturn – The main project details were set out in Appendix 2 to the report, and the report provided a list of those capital schemes completed during this period.

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

·                General Fund Debtors – Outstanding debt for general fund activities as at 31 March was £383,811 and detailed in the report along with the work undertaken to collect debts. Details of general debt written off by the Council to the end of March 2026 was set out in the report.

·                Collection Fund – A table within the report set out the collection fund outturn position and it was noted that a strong collection rate (985) and stable debt position indicated good management of the fund. The Director of Finance highlighted the work being undertaken by the Revenues and Benefits Team, alongside the Finance Team.

It was noted that in line with previous monitoring reports the outturn showed good performance in both revenue budgets and capital investment in line with expectation; debts had reduced, and reserves applied in line with previous decisions.

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:

·                The debt written off and as set out in paragraph 7.5.4, related to general debt and therefore excluded the Collection Fund and Non-Domestic Rates, which were addressed separately. The bad debt provision exceeded £1million, and the reduction in the overall level of outstanding debt meant that the bad debt provision could be reduced, which was where the benefit detailed in the report had arisen from.

In response to a question regarding comparison with the last three years, the Director of Finance advised he did not have that information to hand but would provide it. He emphasised that Council’s reduction in overall debt, achieved through collection rather than write-off, was more significant.

·                The Director of Finance clarified that figure 4 this the year-on-year comparison of staff full-time equivalents as at April 2025 and April 2026. He noted that the number of posts at Director level had reduced, with the largest increase occurring in pay grades F – H. In relation to redundancy, he advised that new structures had been considered and the Council had sought to limit the impact on individuals, based on the advice it had received.

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.