Agenda item

The Director of Finance and Section 151 Officer presented the Quarter 4 Financial Monitoring and Outturn Report 2025/26.

Members were advised that the Council had recorded a small overspend of £5,000 against a net revenue budget of over fifteen point three million pounds. It was noted that this represented a position that was very close to a balanced budget.

It was explained that the financial position had shifted significantly since Quarter three. Two key items had contributed to this change. Firstly, staffing costs of approximately £750,000 had been charged to the capital programme at year-end. Secondly, a VAT correction of approximately £400,000 had been charged to service budgets. The impact of these two adjustments had resulted in the projected overspend reducing from around £300,000 at Quarter three to the final outturn overspend of £5,000.

Members' attention was drawn to a section of the report which detailed variances across individual service areas. Whilst the overall outturn position reflected only a small overspend, there were significant variances within individual service budgets. The report set out explanations for the major variances and outlined the impacts within each service area.

In relation to the capital programme, Members were informed that the Council had commenced the year with a capital budget of seventeen point four million pounds, including schemes carried forward from previous years. The capital programme had subsequently increased to twenty-one point nine million pounds during the year. Against this budget, significant expenditure had been incurred, with only a relatively small amount, approximately five million pounds, required to be carried forward into 2026/27.

Details of the Council's two major Levelling Up Fund schemes were highlighted. Members were advised that the Council continued to maintain a healthy reserves position. At the end of the financial year, earmarked reserves stood at just over fourteen million pounds, whilst the General Fund balance totalled thirteen point one five million pounds. It was noted that these reserve levels provided the Council with a strong degree of financial resilience and risk mitigation.

Members were informed that a review of earmarked reserves would be undertaken during the forthcoming financial year. In addition, a risk assessment of the General Fund balance would be completed to determine the most appropriate level of reserves required. Any resulting adjustments or recommendations would be reported to Council as necessary.

Reference was also made to the Council's collection performance for Council Tax and Business Rates. Members noted that collection rates at year-end were slightly above the national average for shire district councils. Whilst performance had fallen marginally short of the target set at the start of the year, the shortfall was reported to be only minor.

Members commented that the final position was encouraging and that the overspend was minimal.

The Portfolio Holder for Finance thanked the Director of Finance and Section 151 Officer for his presentation of the report and highlighted the enhanced level of financial information now being provided, including service-level outturn data, to improve transparency and understanding of financial performance across the Council.

Whilst endorsing the financial outturn figures presented, the Portfolio Holder for Finance explained that a revised governance approach was being proposed. Following advice from the Section 151 Officer and Monitoring Officer, it was considered appropriate that key financial matters, including the revenue outturn, reserve movements and capital programme slippage, be referred to Full Council for approval. It was emphasised that the financial figures themselves were unchanged and that the proposal was intended to strengthen transparency, accountability and democratic oversight of significant financial decisions.

RESOLVED that

1)       The updated procurement position set out in Appendix A to the minutes be noted, with any new items over £200k to be included on the forward plan.

RECOMMENDED that

2)       The 2025/26 revenue outturn position is an overspend of £5,480 which will be funded by an allocation from General Fund Balance.

3)       The General Fund Opening Balance of £13.382m will be reduced to £13.150m as a result of this overspend and the net transfer to Ward Budget Reserves previously agreed with members.

4)       The 2025/26 capital outturn position is £16.943m spend against a total approved programme of £21.877m. The net balance of £4.934m will be carried forward and included within the 2026/27 capital programme.

5)       The Ward Budget allocation for 2025/26 of £62,000 had approved allocations at £55,402 as at 31 March 2026, resulting in £6,598 which is transferred to General Fund reserves.

6)       The balance of Earmarked Reserves as at 31 March 2026 is £14.169m.