Issue - meetings

To update Members on the 2025/26 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 2026/27 working revenue budgets.

Cabinet received a report on the Council’s financial performance for 2025/26, covering the General Fund, Housing Revenue Account (HRA), Capital Programme and subsidiary companies.

Members were advised that the Council ended the year in a stronger financial position than forecast, with General Fund balances increasing to £7.57 million, supported by higher investment income and stronger service income, which helped offset various budget pressures.

It was noted that the HRA also reported a better-than-expected position, delivering a £1.54 million surplus, although much of this related to one-off factors and funding being carried forward to complete housing repairs, maintenance and improvement works.

Members were pleased to note that, despite improvements to General Fund funding, the HRA continued to face significant medium- and long-term financial pressures arising from increasing regulatory requirements.  A proposal was made to allocate £200,000 of the General Fund underspend towards public realm improvements as part of the town’s 80th anniversary celebrations.

It was RESOLVED:

General Fund

1.    That it be noted that all the financial data is subject to the 2025/26 Statement of Accounts audit.

2.    That the 2025/26 actual General Fund (GF) net expenditure of £10.078 Million be noted.

3.    That the 2025/26 actual core resources (government grants, business rates and council tax) of £11.144 Million be noted (paragraph 4.4.1).

4.    That carry forward/spend requests into 2026/27 totalling £309,150 be approved for the General Fund (paragraph 4.3).

5.    That the 2025/26 transfer to reserves of £3.169 Million be approved for the General Fund (paragraph 4.7.1).

6.    That the transfer from General Fund reserves to allocated reserves in 2025/26 of £2.92 Million as detailed in paragraph 4.7.1 be noted.

7.    That the 2026/27 transfer from reserves of £1.015 Million as set out in paragraphs 4.6.1 and 4.6.5 be approved.

8.    That the changes to the 2026/27 budget of £117,030 as set out in the table in paragraph 4.6 be approved.

Housing Revenue Account

9.    That the 2025/26 in year HRA surplus of £1,543,209 be noted, subject to the audit of the Statement of Accounts.

10.That carry forward requests of £783,140 (paragraph 4.11) be approved.

11.That the 2026/27 revised HRA budget of £942,260 deficit be approved as set out in paragraph 4.12.3.

Capital Programme

12.That the General Fund capital budget re-phasing of £4.4 Million from 2025/26 to future years be approved.

13.That the Housing Revenue Account capital budget re-phasing of £2 Million from 2025/26 to future years be approved.

14.That the new growth item detailed on paragraph 4.17.2 be approved.

15.That the virements totalling £177K detailed on paragraph 4.17.3 be approved.

16.That the changes in Capital Financing in paragraph 4.18 be approved for 2025/26 and 2026/27.

Council’s Subsidiary Companies

17.That the 2025/26 outturn position for the Council’s subsidiary companies as set out in paragraph 4.20 be noted.

Cabinet received a report on the Council’s financial performance for 2025/26, covering the General Fund, Housing Revenue Account (HRA), Capital Programme and subsidiary companies.

Members were advised that the Council ended the year in a stronger financial position than forecast, with General Fund balances increasing to £7.57 million, supported by higher investment income and stronger service income, which helped offset various budget pressures. Part of the underspend related to funding being carried forward for projects to be completed in 2026/27.

It was noted that the HRA also reported an improved outturn position, delivering a £1.54 million surplus, although much of this related to one-off factors and funding being carried forward to complete housing repairs, maintenance and improvement works.

Members were pleased to note that, despite improvements to General Fund funding, the HRA continued to face significant medium- and long-term financial pressures arising from increasing regulatory requirements.  A further recommendation was proposed to allocate £200,000 of the General Fund underspend towards public realm improvements as part of the town’s 80th anniversary celebrations which the Cabinet approved.

It was RESOLVED:

General Fund

1.    That it be noted that all the financial data is subject to the 2025/26 Statement of Accounts audit.

2.    That the 2025/26 actual General Fund (GF) net expenditure of £10.078 Million be noted.

3.    That the 2025/26 actual core resources (government grants, business rates and council tax) of £11.144 Million be noted (paragraph 4.4.1).

4.    That carry forward/spend requests into 2026/27 totalling £309,150 be approved for the General Fund (paragraph 4.3).

5.    That the 2025/26 transfer to reserves of £3.169 Million be approved for the General Fund (paragraph 4.7.1).

6.    That the transfer from General Fund reserves to allocated reserves in 2025/26 of £2.92 Million as detailed in paragraph 4.7.1 be noted.

7.    That the 2026/27 transfer from reserves of £1.015 Million as set out in paragraphs 4.6.1 and 4.6.5 be approved.

8.    That the changes to the 2026/27 budget of £117,030 as set out in the table in paragraph 4.6 be approved.

Housing Revenue Account

9.    That the 2025/26 in year HRA surplus of £1,543,209 be noted, subject to the audit of the Statement of Accounts.

10.That carry forward requests of £783,140 (paragraph 4.11) be approved.

11.That the 2026/27 revised HRA budget of £942,260 deficit be approved as set out in paragraph 4.12.3.

Capital Programme

12.That the General Fund capital budget re-phasing of £4.4 Million from 2025/26 to future years be approved.

13.That the Housing Revenue Account capital budget re-phasing of £2 Million from 2025/26 to future years be approved.

14.That the new growth item detailed on paragraph 4.17.2 be approved.

15.That the virements totalling £177K detailed on paragraph 4.17.3 be approved.

16.That the changes in Capital Financing in paragraph 4.18 be approved for 2025/26 and 2026/27.

Council’s Subsidiary Companies

17.That the 2025/26 outturn position for the Council’s subsidiary companies as set out in paragraph 4.20 be noted.