Issue - meetings

(A report by Brendan Arnold, Interim Director of Finance (S151 Officer))

The Portfolio Holder for Finance, Councillor Sandeep Ghosh, presented a report by the Interim Director of Finance (S151 Officer) which set out the final outturn position for the Council’s finances for the financial year ending 31 March 2025. Details on the full year financial performance as at 31^st March 2025 were attached as Appendix A within the report.

Cabinet was advised that the Council had closed the year with a revenue surplus of £1.015 million, representing a significant improvement on the Quarter 3 forecast of £627,000. The surplus was attributed to disciplined underspends across service directorates, totalling £746,000, with notable savings in IT staffing and deferred projects. Additionally, investment income had performed strongly, with a net favourable variance of £711,000 against the budget of £1.587 million. After transferring £53,000 of S106 interest to the balance sheet, the net benefit stood at £658,000.

It was noted that while most service areas contributed positively to the outturn, overspends were recorded in Governance and Monitoring and General Fund Assets. In terms of service income, planning and cremation fees underperformed by £91,000 and £92,000 respectively, though this was partly offset by an increase in car parking income of £56,000.

The Portfolio Holder reported that the Council had delivered £656,000 in efficiency savings against the £846,000 target, equating to 78% achievement. Although no additional savings were recorded in Quarter 4, the overall service underspends had contributed positively to the surplus position.

Cabinet was further advised that the Council had received £431,000 in government support to offset Internal Drainage Board (IDB) levy pressures. Engagement with the Local Government Minister was ongoing to seek sustainable long-term solutions, although funding arrangements for 2025/26 had not yet been confirmed.

The revised capital programme for the year was set at £20.814 million, with actual expenditure reaching £15.070 million by year-end, reflecting significant momentum in Quarter 4 and a commitment to progressing key infrastructure and service improvement projects.

The Council’s treasury position remained strong, with cash investments closing at £34.832 million and property fund investments valued at £15.237 million. Borrowing costs remained within budget at £111,000. Total reserves increased by £3.343 million to £19.345 million, with the General Fund reserve remaining stable at £2 million.

During discussion, Cabinet welcomed the report and commended the strong financial management demonstrated throughout the year. It was acknowledged that investment performance had been particularly positive, and Members expressed support for the continued monitoring of interest rates and investment opportunities. The importance of maintaining robust reserves and delivering efficiencies was also noted.

The recommendations were moved by Councillor Sandeep Ghosh and seconded by Councillor John Baxter.

Resolved:

1.    That the final revenue position of a £1,015,000 underspend for 2024/25, as detailed in Table 1, be noted;

2.    That Full Council approve the transfer of the £1,015,000 surplus to Volatility Reserve; and

3.    That the final BTAC revenue position of £86,000 and the transfer of the surplus to BTAC Reserve be noted.

(A report by Brendan Arnold, Interim Director of Finance (S151 Officer))

The Interim Director of Finance (S151 Officer) introduced the report which sought Council approval for the rephasing of elements of the Capital Programme from the 2024/25 financial year into 2025/26. Members were advised that, due to the recent Cabinet meeting being inquorate, the full outturn position would be brought forward through the appropriate governance channels in due course. However, urgent approval was required in respect of capital rephasing to ensure continuity in the delivery of key projects.

The Interim Director of Finance (S151 Officer) explained that the rephasing related to schemes funded through the Towns Fund, Levelling Up Fund, and Boston Partnership Fund, all of which were considered strategically significant for the borough. The total value of the proposed rephasing was £5.380 million, comprising £2.109 million for Towns Fund projects, £0.324 million for Levelling Up Fund schemes, £2.582 million for Boston Partnership Fund initiatives, and £0.365 million for other capital projects. These figures were detailed in Table 5C of Appendix A within the report.

Members discussed the report and clarification was sought regarding the status of funding for the Boston United Football Club stadium development, noting that escalating costs had prompted public interest in the timing of the Council’s financial contribution. In response, the Interim Director of Finance (S151 Officer) confirmed that the project remained under active consideration by officers, with final arrangements being progressed. While a specific date for release of funds could not yet be confirmed, the Interim Director of Finance (S151 Officer) undertook to keep members updated.

The recommendations were moved by Councillor Mike Gilbert and seconded by Councillor Paul Gleeson.

Resolved:

That the capital rephasing from 2024/25 to 2025/26, presented in Table 5C in Appendix A within the report, including £2.109m for Towns Fund, £0.324m for LUF, £2.582m for BPF and £0.365m for other capital projects totalling £5.380m be approved.

(A report by Brendan Arnold, Interim Director of Finance (S151 Officer))