Issue - meetings

To consider the decision of the Cabinet for the update on the 2024/25 outturn positions for the General Fund (GF), Housing Revenue Account (HRA), Capital, and the Council’s Subsidiary Companies and to seek approval for changes to 2025/26 working revenue budgets.

Notice of Decisions to follow in separate document.

The Committee heard that Cabinet had received a comprehensive update on the Council’s financial position, as detailed in the consolidated report summarising key resource matters.

The Strategic Director (CF) informed Members that an overall underspend of £573,000 was reported for the General Fund against a budget of approximately £67 million. While this figure appeared significant in isolation, it represented a modest variance in context. Notably, fluctuations in business rate income (NNDR) were highlighted — with a current-year gain of £145,000 offset by a projected reduction of £183,000 in 2026/27.

The Committee were informed that the report included known impacts on the 2025/26 budget, indicating a projected increase in costs  of £320,000, primarily due to carry-forward budget requests from 2024/25.

Regarding the HRA, a £340,000 2024/25 underspend was recorded,however, this included  increased repair costs, which remained a significant pressure despite previous budget uplifts offset by reduced financing expenses. A more detailed update was anticipated through the Quarter 1 monitoring report in September and the HRA Business Plan in November.

The Committee heard that 2024/25 actual capital expenditure totalled £44 million, with some schemes reprofiled into future years.

The Strategic Director (CF) provided an update on council-owned subsidiaries. Queensway LLP continued to face challenges; an action plan was in place, and a fuller report on all companies would be presented in September. It was noted with satisfaction that the new Yali restaurant had now opened.

Cabinet had approved all recommendations contained in the report.

A member commented on the cleaning machine being purchased for the town centre and asked whether it would be also used to clean the flooring at the Bus Interchange. Officers confirmed that cleaning at the interchange was constrained to early Sunday mornings due to operational hours and public safety. Midweek cleaning options were being explored, dependent on access restrictions. Photographic evidence was cited showing significant improvement following Sunday cleaning.

A Member raised a question regarding the purchase of a high-cost thermal imaging camera. The Strategic Director (CF) advised that a follow-up response would be provided by the relevant department.

To update Members on the 2024/25 outturn positions for the General Fund (GF), Housing Revenue Account (HRA), Capital, and the Council’s Subsidiary Companies and to seek approval for changes to 2025/26 working revenue budgets.

Cabinet received a report presenting the Council’s current financial position across the General Fund, Housing Revenue Account (HRA), Capital Programme, and subsidiary companies.

The General Fund had a final position of £573,000 surplus over the working budget, and the HRA reported a surplus of £341,000.

In addition the Council’s General Fund allocated reserves have increased to £11 million.  Despite the reported HRA surplus there still remains financial risk in particular to the HRA with increased costs of repairs so a full HRA Business Plan rewrite is underway to guide strategic financial decisions. 

The report also provided financial information on the Council’s companies. Queensway LLP was primarily purchased for regeneration purposes, funded by an external developer, with the Council leasing the asset.  The LLP reported a £382K operational loss due to on-going commercial challenges and summarised some of the steps being taken.  Marshgate Ltd the councils housing company posted a modest profit of £41K. The Council’s joint venture with Mace at Swingate was progressing with construction on-site.

Members were pleased to see that considerable progress had been made on the build of Claxton House, part of the Joint SG1 Development with Mace.

It was RESOLVED:

1.    That the 2024/25 actual General Fund net expenditure of £11.792 million be noted, subject to the 2024/25 audit of the Statement of Accounts.

2.    That the 2024/25 actual core resources (government grants, business rates and council tax) of £12.994 million be noted, subject to the 2024/25 audit of the Statement of Accounts (paragraph 4.4).

3.    That carry forward/spend requests totalling £262,070 be approved for the General Fund (paragraph 4.3).

4.    That the Transfer to reserves of £1.450 million be approved for the General Fund (paragraph 4.7.1), subject to the 2024/25 audit of the Statement of Accounts.

5.    That the transfer from General Fund reserves to allocated reserves in 2024/25 of £150,000 as detailed in paragraph 4.2.1 (III) and included in the overall additional transfer to reserves as set out in para. 2.1.4 be noted.

6.    That the transfer from reserves in 2025/26 from the Transformation reserves (£9,390 para.4.6.8 refers), Town Square reserves (£104,560 para 4.6.1 refers) and transfer to the Elections reserves (£60,000 para 4.6.7 refers) in 2025/26 be approved. 

7.    That the changes to the 2025/26 as set out in the table in paragraph 4.6 be approved.

Cabinet received a report presenting the Council’s current financial position across the General Fund, Housing Revenue Account (HRA), Capital Programme, and subsidiary companies.

The General Fund had a final position of £573,000 surplus over the working budget, and the HRA reported a surplus of £341,000.

In addition, the Council’s General Fund allocated reserves have increased to £11 million.  Despite the reported HRA surplus there still remains financial risk in particular to the HRA with increased costs of repairs so a full HRA Business Plan rewrite is underway to guide strategic financial decisions. 

The report also provided financial information on the Council’s companies. Queensway LLP was primarily purchased for regeneration purposes, funded by an external developer, with the Council leasing the asset.  The LLP reported a £382K operational loss due to on-going commercial challenges and summarised some of the steps being taken.  Marshgate Ltd the councils housing company posted a modest profit of £41K. The Council’s joint venture with Mace at Swingate was progressing with construction on-site.

Cabinet was advised that a full HRA Business plan review was underway to guide strategic financial decisions.

Members were pleased to see that considerable progress had been made on the build of Claxton House, part of the Joint SG1 Development with Mace.

It was RESOLVED:

1.    That the 2024/25 actual General Fund net expenditure of £11.792 million be noted, subject to the 2024/25 audit of the Statement of Accounts.

2.    That the 2024/25 actual core resources (government grants, business rates and council tax) of £12.994 million be noted, subject to the 2024/25 audit of the Statement of Accounts (paragraph 4.4).

3.    That carry forward/spend requests totalling £262,070 be approved for the General Fund (paragraph 4.3).

4.    That the Transfer to reserves of £1.450 million be approved for the General Fund (paragraph 4.7.1), subject to the 2024/25 audit of the Statement of Accounts.

5.    That the transfer from General Fund reserves to allocated reserves in 2024/25 of £150,000 as detailed in paragraph 4.2.1 (III) and included in the overall additional transfer to reserves as set out in para. 2.1.4 be noted.

6.    That the transfer from reserves in 2025/26 from the Transformation reserves (£9,390 para.4.6.8 refers), Town Square reserves (£104,560 para 4.6.1 refers) and transfer to the Elections reserves (£60,000 para 4.6.7 refers) in 2025/26 be approved. 

7.    That the changes to the 2025/26 as set out in the table in paragraph 4.6 be approved.