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 Executive Member for Financial Sustainability presented the provisional outturn for 2025/26, reporting a revenue overspend of £678,000 against budget. The largest variance related to BEAM’s first full year of operation, with further variances arising within Property Services and Parking. Corporate budgets generated an underspend, largely due to investment income and interest returns.

Members were advised that measures had been implemented to improve BEAM’s financial performance and reporting arrangements, including the development of a new business plan. The Council’s reserves had reduced during the year to fund one-off expenditure, while capital expenditure was below budget, with some funding carried forward to 2026/27.

The Executive also noted that the draft Statement of Accounts for 2025/26 had been published ahead of the statutory deadline and commended the finance team for this achievement.

The Executive Member for Financial Sustainability proposed the recommendations as detailed in the report. The Executive Member for Financial Sustainability seconded the proposal.

Members welcomed the publication of the Statement of Accounts within the statutory deadline and thanked officers for their work.

In discussing BEAM’s financial performance, officers outlined measures introduced to improve financial management and income generation, including enhanced financial oversight, new commercial opportunities, improvements to catering and online booking systems and operational efficiencies. Members noted that the venue was continuing to develop its offer and build its understanding of the market.

Whilst concern was expressed that the first-year deficit had exceeded forecasts, Members emphasised the importance of recognising BEAM’s wider community and cultural value alongside its financial performance. The venue’s role in supporting local events, entertainment and community engagement was acknowledged and Members welcomed signs of increasing audience demand and usage.

The motion to support the recommendations, 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 £678K overspend to be funded from the general reserve, be noted;

(B) the capital outturn position and approved carry forward budgets of £1.142m be noted; and

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

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