Issue - meetings

a) Noted and considered the net revenue budget end of year projected overspend of £789k.

b) Noted and considered the capital programme forecast outturn of £637k.

The Executive Member for Financial Sustainability presented the Financial Management 2025/26 Quarter 1 Forecast to

year end.

The Executive Member for Financial Sustainability advised that there was a £789,000 overspend forecast. He said that key revenue details and variances were outlined in appendices A and B. It was noted that there had been a £270,000 income shortfall for BEAM which was related to the delay in recruiting a chef.

Members were advised that an appointment had now been made, and a food offering was now available which would significantly improve the financial results going forward. In addition, a £210,000 business rates pressure remained under appeal. These pressures were being examined to avoid repetition in the 2026/27 budget.

The Executive Member for Financial Sustainability said that the capital programme (Appendix C) detailed a £637,000 underspend and the Aged Debt Analysis (Appendix D) reported a £698,000 debt reduction, aided by settlements and write-offs, with further improvements expected.

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 commented on the delay in appointing a chef for BEAM. Members heard that the delay had stemmed from the theatre director’s decision to prioritise stabilising other aspects of the business before launching the food service. In addition, staff turnover had also contributed to this delay. It was noted that in the lead-up to BEAM’s opening, the project had been running approximately six months behind schedule and efforts had focused on opening on time.

Members highlighted that Stage Two had only launched in April 2025 and that bookings had taken priority over food, with a successful programme now in place with sold-out events. Members noted that initial operational challenges highlighted the need for caution in future financial planning.

Members commended the work of the Director for Commercial, Customer and Regeneration and noted that alongside his team, they had successfully navigated the challenges faced with BEAM, opening Stage Two and launching a food offering. It was noted that theatre activity was seasonal, and activity was expected to increase from September to December, with pantomime anticipated to be a major income stream.

The Executive Member for Environmental Sustainability commented on aged debts, highlighting that whilst a significant payment had been received from one of the largest outstanding debtors, aged debt figures had continued to grow since March 2025.

The Executive Member for Financial Sustainability explained that several large debts had been complex and required extensive investigation due to their age. Members were informed that these were actively being worked on, with many expected to be resolved within three to six months. The Director of Finance, Risk and Performance added that considerable progress had been made over the past six months, including careful write-offs following due diligence. Efforts had focused on streamlining the debt recovery process through automation, ensuring smoother transitions between stages and reducing delays. The team aimed to manage both old and new debts simultaneously, with a continued emphasis on minimising  ...  view the full minutes text for item 190

The Service Manager (Strategic Finance) introduced the report which presented the forecast outturn position for 2025/26 as at Quarter 1. She said that as of 30June 2025 a revenue overspend of £789k was forecast, and that of this, £888k related to variances against the net cost of services budget – which was being monitored by Leadership Team on a monthly basis.

The Service Manager (Strategic Finance) said that net £99k favourable variance was forecast against interest received and paid by the council, mainly due to better interest rates being achieved on the Councils investments than was budgeted.

The Service Manager (Strategic Finance) said that savings proposals of £3.4m were built into the net cost of services budgets in 2025/26, with the table in paragraph 1.2 of the report showing the progress made in achieving these savings. She said that of this £3.4m, nearly £3.1m would be achieved in full within in the year, with just under £200k not being realised for the same period (as highlighted in amber), and just under £130k, (highlighted in red) being reviewed for achievability. 

The Service Manager (Strategic Finance) said that revised capital programme budget for 2025/26 was £11.25m, with a forecast that there will be an underspend of £637k in 2025/26. She said that this was due to no current requirement forecast for the capital contingency and underspends against the Old River Lane budget and ICT rolling programme.

The Service Manager (Strategic Finance) said that detail regarding debtors included the outstanding debt position as at the end of July, compared to 31 March 2025. She said that this showed a reduction in the debt outstanding of just under £700k between these two dates. She added that whilst outstanding debt was a constantly moving position, she wished to highlight that in line with the Council’s debt management policy, just under £510k of debt had been written off, and large aged debts with a single customer of just under £700k had been collected – with this reduction in the volume of debts outstanding allowing the team to focus their efforts on collectable debts.

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

Councillor Deering referred to Appendix D of the report and questioned how in excess of £1m of old debt existed and why a large write off of debt had occurred.

The Service Manager (Strategic Finance) said that a review of aged debt had been undertaken, tackling the oldest debt first. She said that this enabled £512k of debts which were uncollectable, i.e. through bankruptcy, to be identified, allowing the team to focus on the £1m of collectable aged debt.

The Director for Finance, Performance and Risk said that much work had been undertaken over the past six months in relation to debt. He said that much of the old debt could not legally be pursued through the Courts, but lessons had been learned, and processes were now in place. He added that the level of debt was like levels seen in  ...  view the full minutes text for item 178