Issue - meetings

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

The Portfolio Holder for Finance and Economic Growth, Councillor Sandeep Ghosh, introduced the report which presented the Council’s final outturn position for the 2024/25 financial year and sought approval for the transfer of the resulting surplus to earmarked reserves.

Members were advised that the Council had delivered a General Fund revenue surplus of £1.015 million, representing a significant improvement on the forecast position reported at Quarter 3. The surplus was attributed to a combination of disciplined cost control, delayed capital programme delivery, and higher-than-anticipated investment income.

The Portfolio Holder provided a breakdown of the key variances across service areas:

·         Leisure and Culture reported the largest underspend of £398k, primarily due to the postponement of works at the leisure pool (£272k), staffing savings across events and markets, and reduced costs in shared management and museum services.

·         Neighbourhoods achieved an underspend of £151k, with savings arising from a new vehicle washing contract, reduced fuel costs, and vacancies in street cleansing.

·         Wellbeing and Community Leadership delivered an underspend of £195k, including savings on CCTV staffing and Bed & Breakfast provision.

·         Corporate Services underspent by £84k, largely due to reduced software licensing costs.

·         Economic Growth underspent by £58k, reflecting a vacancy in the inward investment officer post.

·         Finance underspent by £64k, following a correction to the rent allowance provision.

It was noted that Governance and Monitoring had overspent by £105k, primarily due to increased Members’ allowances. General Fund Assets also reported an overspend of £210k, driven by higher repairs and maintenance costs.

In addition to service-level variances, Members were informed that:

·         Investment income exceeded expectations by £658k, due to favourable interest rates and higher cash balances resulting from capital programme slippage.

·         The capital programme underspent by £5.7 million, with unspent grant funding carried forward.

·         The Council’s earmarked reserves would increase to £19.345 million following the proposed transfer.

The Portfolio Holder confirmed that the surplus would be transferred to the Volatility Reserve, in line with the Council’s financial strategy to mitigate future risks and support budget resilience.

The recommendation was moved by Councillor Sandeep Ghosh and seconded by Councillor Stuart Evans.

Resolved:

That the transfer of the £1,015,000 General Fund surplus for 2024/25 to the Volatility Reserve be approved.