Issue - meetings

a) Noted the general fund revenue outturn of £132k overspend to be funded from the general reserve; and

b) Noted the capital outturn position and approve carry forward budgets of £358k; and

c) Received the 2023/24 draft statement of accounts.

The Executive Member for Financial Sustainability presented the Provisional Outturn 2024/25 and Draft Statement of Accounts 2024/25. Members heard that the figures remained provisional subject to auditor approval. The revenue account showed an overspend of £132,000, which marked a significant improvement from the £955,000 forecast at the end of quarter 3. It was noted that this was achieved through capitalisation of interest, a review of the minimum revenue provision and improved service costs. The Executive Member for Financial Sustainability highlighted that the Council had successfully returned to the required reporting schedule after previous delays. It was noted that with a new auditor in place, future timelines were expected to be met.

The Executive Member for Financial Sustainability proposed that the recommendation in the report be supported.  The Executive Member for Corporate Services seconded the proposal.

Councillor Devonshire asked why £170,000 for the URC Church Hall had been removed from the capital forecast and whether business rates were still being paid on Charringtons House and the former Lemon Tree restaurant, both of which were vacant.

It was explained that the URC Hall budget had not been spent but was rolled forward into the next financial year, making it a timing issue rather than a budget change. The future of the URC Church Hall remained under review, pending further discussions with community interest groups. In relation to business rates, it was confirmed that rates were still being paid on both properties whilst the properties remained in Council ownership. It was noted that the transfer of the Old River Lane (ORL) scheme, subject to planning approval, was expected to end the Council’s liability for Charringtons House. The future of the Lemon Tree building remained under discussion and was dependent on the final design of the ORL scheme, with clarity expected within six months, although delays were possible.

The Executive Member for Environmental Sustainability expressed gratitude to the finance team for the capitalisation of interest. Members acknowledged the positive impact on the accounts and expressed satisfaction in having audits up to date.

The Leader sought clarity in relation to the spending on refuse and recycling vehicles. It was confirmed that a reduction in spend was anticipated, with the original estimate of £8 million revised to £6.2 million. It was noted that this figure was provisional and likely to be fully confirmed in the Quarter 1 report.

The motion to support the recommendation, having been proposed and seconded, was put to the meeting and upon a vote being taken, was declared CARRIED.

RESOLVED – that (A) the general fund revenue outturn of £132k overspend to be funded from the general reserve be noted;

(B)     the capital outturn position and approve carry forward budgets of £358k be noted; and
 

(C)     the 2023/24 draft statement of accounts, be received.

The Service Manager (Strategic Finance) introduced the report which presented the 2024/25 Provisional outturn and the 2024/25 draft statement of accounts. She highlighted the report’s key points, advising that variances had been monitored and reported to Members throughout the year.

The Service Manager (Strategic Finance) referred to Appendix B, which showed the significant variances against net cost of services compared to the amounts reported at Quarter 3. She said that variances not previously reported were shown at the bottom of this appendix.

The Service Manager (Strategic Finance) said that reviews of Minimum Revenue Provision (MRP) and capitalisation of interest were completed in Quarter 4 of 2024/25, adding that the impact of these had resulted in reductions in expenditure against the budgets of £281k and £340k respectively. She said that £4.7m of reserves had been utilised to fund expenditure in 2024/25, and of this £3m was used to fund capital works at BEAM and £1.8m funded the loss in investment in the Lothbury Property fund (which had been funded from a reserve specifically set aside for this purpose).

The Service Manager (Strategic Finance) drew Members attention to Table 3 in the report which showed the capital outturn position. She said that £7m was spent in 2024/25 against a budget of £19.15m giving a variance of just over £12m. She added that carry forward budgets of just under £9m were approved as part of the 2025/26 capital programme in February 2025, with Members asked to approve an additional £358k of carry forwards, required in relation to schemes where expenditure has been reprofiled to 2025/26, or where retentions were still to be paid.

The Service Manager (Strategic Finance) said that the 2024/25 draft statement of accounts were included at Appendix D, which were published in line with the statutory deadlines, and which Members were requested to note. She said that officers were working with Azets to complete the audit of these accounts by the 27 February 2026.

The Chair thanked the Service Manager (Strategic Finance) for the report.

Councillor Deering referred to paragraph 3.3 of the report and sought further clarity in relation to the loss on the Lothbury property fund.

The Service Manager (Strategic Finance) said that the Council had equally invested a total of £20m of surplus income into two property funds in 2015, which gave the best return, with interest above that given elsewhere at that time. She said that the terms of entry for both of these funds had since changed, causing lots of investors to disengage, and assets within the fund to be sold – she added that the interest received from the fund exceeded the ‘loss’, which had been caused by units within the fund decreasing since their purchase.  

It was moved by Councillor Willcocks and seconded by Councillor Nicholls that that the recommendations, as detailed, be approved. After being put to the meeting and a vote taken, this motion was declared CARRIED. 

RESOLVED – that (A) the general fund revenue outturn of £132k overspend to be  ...  view the full minutes text for item 175