Agenda item

The Committee heard from the Financial Services Manager regarding the Quarter Two Budget & Treasury Monitoring report for 2025/26 as of the end of September. It was explained that in relation to revenue budgets, the forecast outturn position was a net contribution to reserves (or underspend) of £177,000, which was an increase of £158,000 from the forecast position reported at quarter one.

Members heard that the significant variances against expenditure budgets included salary underspends of £28,000, which included the impact of the pay award of 3.2% agreed in July; a corporate contingency budget of £51,000 which was no longer needed; an underspend against fuel of £45,000, which included an expectation of fuel prices increasing slightly over the remainder of the year. It was highlighted that these underspends were offset by a pressure of £32,000 on insurance premiums due to the impact of an increase in fleet numbers for food waste collections and changes in property values.

The significant variance against income budgets included net interest receivable forecast at £83,000 above budget; drainage board levy support grant of £59,000; and an increased income for big bin hire service, bulky waste collections and commercial waste of £42,000. This was offset by a Housing Benefit subsidy pressure which was currently forecast at £83,000, due to supported accommodation placements with unregistered landlords where full subsidy could not be claimed. Members heard that there was also a pressure of £20,000 against legal services following the signing of a new SLA with Lincolnshire County Council.

In relation to the capital programme, it was explained there was a reported net underspend of £2.361m against the revised budget. It was detailed that £1.889m was to be carried forward into next year. £1.4m of this related to the Warm Homes Local Grant scheme as the phasing of the grant to be received was to be spread across three years, from 2025/26 to 2027/28, with £440,000 payable in 2025/26. There was also a reported net underspend of £0.472m. This related to the balance on the Home Upgrade Phase 2 scheme which had been repaid to the Midland Net Zero Hub. Works were approved in large batches and funding was released on that basis, however, over the life of the scheme some measures were not installed and therefore the funding was returned.

A Member of the Committee put on record his thanks to the Financial Services Manager and her team, recognising their fabulous work  especially given the framework and circumstances they worked within. In praising the team, he duly moved the recommendations as written within the report.

The Chairman echoed those sentiments and invited further comments from Members.

During the course of discussions, Members raised a number of queries and it was agreed that additional information be circulated. These were specifically seeking details as to why there was a significant underspend on the home upgrade grant, under which scheme were two properties acquired by the Council, and why had there been there a drop in the income generated from enforcement notices and why had it increased again.

With regard to the truck cartel claim contribution to reserves, it was queried whether this had been an unexpected windfall and whether there were other outstanding legacy cases which may come in. It was confirmed it was a windfall from a legacy legal case which had been in progress for a number of years and there had not been any real expectation on funds being received. It was confirmed there were no other outstanding cases, however Officers would inform Members should there be similar circumstances in the future.

With thanks again to all involved in the financial services work, and with congratulations to the Financial Services Manager on her recent promotion, the recommendations were duly seconded and voted upon. It was

            RESOLVED that

REVENUE

a)    the forecast out-turn position of a £0.177m net contribution to reserves as of 30 September 2025 (see Section 2) relating to revenue activity, be accepted; and

b)    the use of Earmarked Reserves approved by the Chief Finance Officer using Delegated powers (Section 2.4.1), be accepted; and

c)    the contribution to Earmarked Reserves - £0.074m (2.4.2) be approved.

CAPITAL

d)    the current projected Capital Outturn position of £13.732m (Section 3) be accepted; and  

e)    the amendments to the Capital Schemes as detailed in 3.2 be approved.

TREASURY

f)     the report, the treasury activity and the prudential indicators (Section 4) be accepted.