Issue - meetings

(A report by Russell Stone, Director of Finance (S151 Officer))

The Portfolio Holder for Economic Growth and Finance, Councillor Sandeep Ghosh, introduced the report which set out the Quarter 2 Capital Forecast Outturn for 2025/26. The Portfolio Holder explained that the capital programme was being regularly monitored and updated to ensure that expenditure profiles remained aligned with project delivery across the Council’s major schemes, including those funded through the Towns Fund, the Levelling Up Fund (LUF), and other external grant programmes.

Council was advised that a number of budget adjustments were proposed to reflect updated project timelines, including the reprofiling of £100,000 from 2026/27 into 2025/26 in relation to the Crown House scheme as part of the wider LUF programme. Members were informed that these adjustments did not represent additional expenditure, but rather a change in the expected timing of works.

Members discussed the report and welcomed the update on the delivery of major capital schemes. It was acknowledged that large regeneration projects inevitably required regular review of profiles to reflect changes in construction timing, procurement stages, and contract mobilisation.

During the debate, a request was made for clarification regarding the Crown House site, specifically whether the movement of £100,000 into the 2025/26 financial year indicated that works on the site were ahead of schedule, or whether the adjustment reflected a rephasing of planned expenditure for other operational reasons. The Portfolio Holder confirmed that a written response would be provided to address the detailed technical point.

Members noted the importance of maintaining clear reporting on project timelines given the scale of the Council’s regeneration portfolio and the need to ensure that capital forecasts remained accurate.

Overall, Members recognised the continued progress being made across the capital programme and the importance of maintaining financial control and transparency during the delivery of externally funded schemes.

The recommendations were moved by Councillor Sandeep Ghosh and seconded by Councillor Dale Broughton.

Resolved:

That the Quarter 2 2025/26 Capital Forecast Outturn, including the proposed amendments to the capital programme for 2025/26 as set out in the report, be approved.

(A report by Russell Stone, Director of Finance (S151 Officer))

The Director of Finance (S151 Officer) presented a report which provided members with the financial forecast for the remainder of the 2025/26 financial year, based on the position at the end of September 2025. It outlined the projected revenue and capital outturn, identified key variances, and highlighted areas requiring continued focus to maintain financial sustainability. The report included the detailed revenue forecast at Appendix A – Table 1 and the capital programme amendments at Appendix B – Table 3.

Members were advised that the forecast revenue position showed a £0.571m deficit, which represented an improvement compared to Quarter 1, when the deficit was reported at over £0.8m. The improvement was attributed to a combination of cost savings, efficiency measures, and additional income streams. The report also confirmed that the Council continued to work towards achieving its savings and efficiency target for the year, with approximately £700,000 still to be realised.

The capital programme was reviewed, with amendments set out in Appendix B – Table 3 within the report. The revised programme totalled approximately £38.5m, with forecast expenditure of £37m, resulting in a projected underspend of around £1.25m. It was noted that these changes would require approval by Full Council.

The report also highlighted treasury management activity, including the early repayment of the State Street loan and its replacement with borrowing at a significantly lower interest rate, generating an in-year saving of approximately £28,000 and delivering ongoing benefits in future years.

Members welcomed the improvement in the revenue position and acknowledged the efforts of officers in managing financial pressures. The discussion recognised that while progress had been made, the remaining efficiency target required continued focus and innovative approaches to service delivery.

Attention was drawn to income pressures in areas such as commercial waste, planning, and markets, and the steps being taken to mitigate these, including recruitment of a new commercial waste manager to drive growth in that service. The potential for further savings through operational efficiencies and income generation was noted as a priority.

The discussion also considered the implications of property fund investments, with clarification provided that while current carrying values were below initial investment levels, long-term returns remained positive and the Council would only consider exiting these funds if financially advantageous.

Members agreed that the amendments to the capital programme were necessary to reflect updated project timelines and funding allocations. The importance of maintaining robust financial management and monitoring throughout the remainder of the year was emphasised, particularly in light of ongoing economic uncertainty.

The recommendation was moved by Councillor Callum Butler and seconded by Councillor Mike Gilbert.

Resolved:

1.    That the forecast revenue position of £0.571m deficit for 2025/26 as detailed at Appendix A – Table 1 within the report and the need for continuous focus on the savings and efficiency programme be noted;

2.    That the amendments to the Capital Programme within Appendix B – Table 3 within the report be noted; and

3.    That Full Council be recommended to approve the amendments to the Capital Programme  ...  view the full minutes text for item 35