Agenda item

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 aged debt.

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

net revenue budget end of year projected overspend of £789k, be noted; and

(B)     the capital programme forecast outturn of £637k, be noted.