Agenda item

The Deputy Chief Executive and s151 Officer, Bromsgrove District Council (BDC) and Redditch Borough Council (RBC), introduced the report and in doing so drew Members’ attention to the Recommendation as detailed on page 21 of the main agenda pack.

The report covered the period April to March 2025.

Members were informed that as detailed in the report (page 23 of the main agenda pack), that it was being requested that the final surplus amount of £54,227 be added to the Worcestershire Regulatory Services (WRS) reserves; in order to assist with any upcoming cost pressures. Should Board Members reject this request, then the surplus amount would be refunded to Partners.

Members’ attention was drawn to Appendix 5 to the report, WRS Reserve Statement 2024/25.

The Director of WRS highlighted that previously any underspend had been refunded to Partners, however, the Shared Services Partnership Service Level Agreement (SLA) also covered any underspend being added to WRS reserves.

Board Members questioned if the reserves could be summarised and where the underspend had come from.

The Director of WRS referred to Appendix 5 to the report, and in doing so explained that when Worcestershire County Council (WCC) had decided to leave the Partnership, it was agreed that they would have to cover the administration costs and also provide a contribution to the ongoing WRS service following their departure. The General Reserves had come about in 2016. WRS however still managed the Trading Standards service for WCC.

With costs to cover additional salary increases, Officers might have to come back to Partners if they were unable to cover any additional salary costs or could look to use the reserves.

Councillor A. Scott, Worcester City Council (WCC) remarked that he welcomed the unexpected additional £54,227 surplus. However, WCC Members would be keeping an eye as to where the reserves were used / spent.

In response to further questions on Appendix 5 - WRS Reserve Statement 2024/25, the Director of WRS further explained that there had been a delay with some projects commencing but they were now moving forward slowly; there had been changes and some were 3-year projects. The Director of WRS also explained that several of the smaller elements of the reserve were held for other bodies or on behalf of the authorities in the region, so were not just available to WRS. He reassured Members that a number of the reserves would be invested over the next few years, with the General Reserve continuing to be held to provide a buffer, to limit the impact on partners should income generation not yield sufficient funds to cover service costs.

Councillor A. Scott, Worcester City Council (WCC) asked if there were any sudden pressures on the service involving one partner (e.g. Licensing or Environmental Health) could Partners request that reserves were used to support the response to these situations.

At this stage in the meeting, Councillor M. Alcott, Worcester City Council arrived.

The Director of WRS stated that if the service had to deal with a major issue in one partner’s area, and additional resource was needed to support the response to this, then it would be reasonable for the partnership to use the reserve in this case. The Director recalled two previous situations where, if they were repeated today, this may be something he would ask the partners to consider.

The  Deputy Chief Executive and s151 Officer, BDC and RBC, stated that the General Reserves would be used to address any urgent issues / pressures, and that Partners would not have to be approached for any additional funding. WRS would be able, if necessary, to draw down from reserves.

The Chairman highlighted that as detailed in the report, WRS had had another successful year and had overachieved the budgeted income, which was good news. 

RESOLVED that the Board

1.1           notes the final financial position for the period April – March 2025,

1.2           approves the 2024/25 surplus of £54,227 to be added to the WRS reserve, in order to assist with addressing any upcoming cost pressures.