Agenda item

(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 at Appendix B – Table 3 within the report.