Issue - meetings

To report on the Council’s Finances as at 31 March 2026 (report of the Executive Director – Finance (Section 151 Officer) enclosed).

Consideration was given to the report of the Executive Director – Finance and Section 151 which reported on the Council’s Finances as at 31^st March 2026.

The Portfolio Holder for Finance presented the Draft Revenue and Capital Outturn Report for the period 1 April 2025 to 31 March 2026.

Members were advised that the General Fund revenue position showed a favourable variance of £258,000, demonstrating effective budget monitoring and the identification of savings opportunities throughout the year. It was noted that the budget approved by Council had included an efficiency target of £1.256 million and that the outturn position confirmed this target had been exceeded.

The Housing Revenue Account (HRA) revenue position also reported a favourable variance of £3.13 million. This was primarily attributable to a borrowing discount of £1.837 million and favourable investment and interest income variances totalling £557,000.

Cabinet noted the strong Treasury Management performance during the year. Investment income exceeded budget by £825,000 across both the General Fund and HRA.

Members were informed that, following a review of debt in March 2026, the Council had repaid approximately £67.5 million of Public Works Loan Board (PWLB) borrowing and received a discount of £18.4 million. The loans were replaced with £50 million of new PWLB borrowing, reducing annual interest costs by approximately £84,000. The £18.4 million discount would be credited equally to the HRA over a ten-year period commencing in 2025/26.

In relation to reserves, Cabinet noted that draft General Fund reserves stood at approximately £12 million and HRA reserves at approximately £12.7 million. It was highlighted that the majority of General Fund reserves were either committed or ringfenced. Both reserve balances included the current year underspends.

The General Fund capital programme reported expenditure of £11.6 million against a budget of £14.9 million, resulting in an underspend of approximately £3.3 million. Of this, £3.1 million was proposed to be rephased into future years to reflect revised delivery timescales for existing projects. Members were reminded that rephasing ensured funding previously approved by Council remained available to deliver projects within the approved five-year capital programme.

Cabinet also noted a proposed additional capital provision of £150,000 in 2026/27 to deliver a dedicated vehicle washing facility at the Waste Depot. The facility would support statutory duties as a waste collection authority, facilitate the introduction of weekly food waste collections and help address hygiene, environmental and operational requirements associated with increased handling of organic waste.

The HRA capital programme had a budget of £20.4 million during 2025/26. Draft expenditure totalled approximately £12 million, resulting in a variance of £8.4 million. Members noted that £5.5 million of this would be rephased into 2026/27. An additional £2 million was also proposed for 2026/27 to continue and expand energy efficiency improvements across the Council's housing stock.

During discussion, Members welcomed the positive financial position and praised the work of the Finance Team.

In response to questions regarding the Council's principal financial risks, officers advised that inflationary pressures, the cost-of-living impact on residents, financing costs and wider  ...  view the full minutes text for item 18