Issue - meetings

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

The Portfolio Holder for Finance and Economic Growth, Councillor Sandeep Ghosh, presented a report by the Director of Finance (S151 Officer), who was in attendance, which set out the Council’s financial position as at the end of December 2025 (Quarter 3) and the forecast outturn for the 2025/26 financial year. The report was accompanied by two detailed appendices: Appendix A – BBC Q3 Finance Revenue Report 2025?26, and Appendix B – BBC Q3 Finance Capital Report 2025?26, providing comprehensive analysis of revenue performance, reserves, treasury activity and capital programme monitoring.

The Portfolio Holder explained that the forecast for the full year showed a net revenue deficit of £0.457m, representing an improvement on the Quarter 2 position. Income shortfalls remained the primary pressure, particularly within planning (£250k), cremation services (£178k) and markets (£19k), although these had been partially offset by several favourable variances including recovery of housing benefit overpayments, reduced computer costs, vacancy savings within the Senior Leadership Team, and increased car parking income.

Members were advised that 54% of the annual efficiency target (£1.429m) had been identified by Quarter 3, supported significantly by the £0.654m Internal Drainage Board (IDB) funding allocated by Government. Work continued with service managers to secure the remaining efficiencies required to reduce the deficit and support the Medium Term Financial Strategy.

During discussion, the Cabinet reviewed the revenue and capital monitoring information in detail. Members commented on the volatility of planning income and the difficulty in predicting major applications, noting that fluctuations of this type were common and influenced by national and local factors. The report also highlighted the ongoing pressures on bereavement income due to lower cremation numbers and increased local market competition.

Clarification was sought on the additional legal expenditure identified within the Governance and Monitoring budget. Members were informed that although the historic matter was not ideal, the expenditure had been authorised appropriately in line with the Council’s financial procedures. The importance of strengthened oversight and safeguarding of financial decision?making was emphasised.

Members noted progress within the capital programme, as detailed in Appendix B, with expenditure of £14.023m against a revised full?year budget of £37.422m, and acknowledged the impact of re?profiling on several major projects.

The Cabinet Members expressed their thanks to the Portfolio Holder and the Finance Team for their continued hard work in a challenging financial climate.

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

Resolved:

1.    That the forecast revenue position of £0.457m deficit for 2025/26, as detailed in Appendix A – Table 1 within the report, and the need for continuous focus on the savings and efficiency programme be noted; and

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