Agenda item

The Board received an overview of the Revenue Monitoring report for the April 2025- March 2026 period and Annual Return.

The Director of Finance and Section 151 Officer, Bromsgrove District Council (BDC) and Redditch Borough Council (RBC), presented the report and highlighted that the report presented the final financial position which showed a final outturn surplus of £67,487. This figure, which represented 1.6% of the annual budget, was as a result of:

• Lower salary costs than budget forecasts originally accounted for due to departmental vacancies and delayed recruitment exercises.
• Income had been higher than predicted income by £517,000.

Members were informed as detailed in the report (page 21 of the main agenda pack), that it was being requested that the final surplus amount of £67,487 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.

It was acknowledged that cost pressures that could arise in the upcoming year included:

• Salary increases were likely to exceed the budgeted amount of 3%, as the proposed salary offer had been rejected by the trade unions.
• Expenditure related to training for Officers to ensure staff adhered to statutory training requirements as stipulated by the Code of Practice for Environmental Health Officers.
• Possible legislation changes to Hackney and Private Hire vehicle controls, as laid out in the King’s Speech.

The Director of Finance and Section 151 Officer, BDC and RBC,  outlined that some figures detailed in the reports were incorrect, and provided the Board with corrections, namely:

• The Board had regard to the WRS Annual Return 2025/ 26 (Appendix 3) at Page 29 of the main agenda pack:
  • Income received from partners via Technical Pollution Work (Worcester City) was £44,863.
  • The income received from all partners totalled £5,189,170.
  • Other income categorised as ‘County – Management, Administration and Legal etc’ was £80,033.
  • The other income totalled £638,608.
• The figures quoted in WRS Income 2025/ 26 (Appendix 4) were confirmed as accurate.
• The Board had regard to the WRS Reserves Statement 2025/ 26 (Appendix 5) at Page 33 of the main agenda pack:
  • The total earmarked reserve ‘Transfers Out 2025/ 26’ was -£595.
  • The total earmarked reserve ‘Transfers In 2025/ 26’ was £0.
  • The WRS General Reserve balance as of 31^st March 2026 was £125,529.
  • The Total Earmarked Reserve balance as of 31^st March 2026 was £342,860.

It was noted that the recruitment of temporary staff may be required to ensure service delivery was maintained. Board Members in attendance further noted that there had been an overspend during the municipal year of 2025/ 26 in both IT and dog warden charges service areas.

The Director of Worcestershire Regulatory Services highlighted that the service had experienced a successful year in terms of service and performance outcomes.

RESOLVED that

1)    The final financial position for the period April 2025- March 2026 be noted;

2)    The 2025/ 26 surplus of £67,487 be approved and added to the Worcestershire Regulatory Services reserve, in order to assist with addressing any upcoming cost pressures.