Issue - meetings

That Executive: (A) Note the general fund revenue outturn of £678K overspend to be funded from the general reserve; and

(B) Note the capital outturn position and approve carry forward budgets of £1.142m.

(C) Receive the 2025/26 draft statement of accounts prior to them being audited.

The Assistant Director for Finance submitted an overview of the 2025/26 provisional outturn position and the Draft Statement of Accounts for the 2025/26 financial year.

Members were advised that the outturn remained provisional until the council’s accounts had been audited. The Assistant Director for Finance advised that the provisional outturn showed an overspend of £678,000 against the net revenue budget, representing an adverse movement of £172,000 from the Quarter 3 position.

Members were referred to Appendix A for the breakdown of the revenue budget, and this showed the movements from quarter three. The overspend would be funded from earmarked reserves.

The Assistant Director for Finance said that there had been a number of movements since the quarter three budget monitoring had been reported to the committee. The details of these movements were detailed in paragraphs 3.2 and 3.3 of the report and also within Appendix B.

The Committee was informed that just over £2 million of earmarked reserves had been utilised in closing the 2025/26 accounts. These reserves had been utilised to fund expenditure including mobilisation costs associated with the new waste contract, redundancy costs and costs associated with Local Government Reorganisation (LGR).

The Assistant Director for Finance said that reserves had also been used to smooth the impact on the revenue position in respect of housing benefit subsidy, losses arising from property fund investments and the business rates collection fund deficit.

Members were advised that the balance on reserves as at 31 March 2026 was £19.3 million, and this included £3.9 million in the General Fund balance and £15.3 million in earmarked reserves. The Assistant Director for Finance said that these figures were in line with projections in the most recent Medium-Term Financial Plan that was approved by Council in March 2026.

Members were advised that the level of reserves were deemed adequate to support the council’s financial position and medium-term strategy. The Assistant Director for Finance said that capital expenditure of £8.6 million had been incurred during the year, principally relating to the acquisition of waste and recycling vehicles and equipment.

Members were advised that a capital programme underspend of £3.3 million was reported, of which £1.142 million was proposed to be carried forward into 2026/27. Details of the capital schemes where budgets were not required to be rolled forward were contained in paragraph 4.4.

Members were advised that the 2025/26 draft accounts were published on the council’s website ahead of the statutory deadline and the external audit would begin in September 2026 and would need to be completed by 31 January 2027.

Members asked a number of questions and Officers explained that Rapier House was currently occupied by the ground’s maintenance contractor following the relocation from the Buntingford Service Centre depot.

The Assistant Director for Finance said that the planning permission process regarding Amwell End was in progress and was nearing completion.

Members were advised once the contractor had vacated Rapier House, the council would be in a position to lease the building to a potential tenant.  ...  view the full minutes text for item 11