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Issue - meetings

Financial Performance Report 2024-25 Quarter 4

 

 

Meeting: 10/07/2025 - Cabinet (Item 116)

116 Financial Performance Report 2024-25 Quarter 4 pdf icon PDF 821 KB

Purpose

To set out the final outturn position for the 2024/25 financial year.

 

Recommendation(s)

That Cabinet resolves to:

  1. NOTE the outturn financial position set out in this report.
  2. NOTE the Non-treasury Prudential Indicators in Annex B.
  3. APPROVE the transfer to and from reserves as set out in paragraph 2.15 to 2.18 and 6.1 to 6.6 and Annex C.
  4. APPROVE the carry forward of unspent capital budget included in paragraph 6.5 of £0.565m into the 2025/26 Capital Programme.
  5. NOTE the change in provisions as set out in paragraph 2.14

Additional documents:

Decision:

On being proposed and seconded the proposal was put to the vote.

 

RESOLVED that CABINET:

  1. Noted the outturn financial position set out in this report.
  2. Noted the Non-treasury Prudential Indicators in Annex B.
  3. Approved the transfer to and from reserves as set out in paragraph 2.15 to 2.18 and 6.1 to 6.6 and Annex C.
  4. Approved the carry forward of unspent capital budget included in paragraph 6.5 of £0.565m into the 2025/26 Capital Programme.
  5. Noted the change in provisions as set out in paragraph 2.14.

Voting Record:

6 For, 0 Against, 0 Abstain.

Minutes:

The Purpose of the report was to set out the final outturn position for the 2024/25 financial year.

 

David Stanley, Deputy Chief Executive Officer, introduced the report which had been reviewed at Overview and Scrutiny Committee.

 

A positive outturn for the 2024/25 revenue budget was reported. While the original 2024/25 budget had anticipated a contribution of £516,000 to the Financial Resilience Reserve, the actual outturn delivered a surplus of £778,000 — an additional £262,000 above budget.

 

Cabinet was reminded of the Council motion approved in November 2023, which required the replenishment of the Financial Resilience Reserve following the use of £1.852 million to balance the budgets for 2022/23 and 2023/24. Based on current projections, contributions to the reserve could total £1.874 million across 2024/25 and 2025/26, representing a more favourable position than originally expected.

 

It was confirmed that the additional £262,000 surplus would be transferred to the Council’s Transformation Reserve to support service redesign and prepare for potential local government reorganisation.

 

Cabinet was informed that the Council had been contacted by the Department for Levelling Up, Housing and Communities (DLUHC) and invited to a meeting on 22 July 2025 to discuss transitional arrangements under the Fair Funding Review. Cotswold District Council, along with Stroud and Tewkesbury, had been identified as potentially facing a negative funding adjustment. In view of this and other financial risks, Members were advised to exercise caution and prioritise essential spending.

 

Councillor Patrick Coleman, Cabinet Member for Finance, expressed concern that the outcomes of the Fair Funding Review were likely to disadvantage smaller, rural councils such as Cotswold. He acknowledged the longstanding structural funding challenges but commended the proactive financial planning undertaken. He noted that the Council had secured significant capital receipts and praised the Deputy Chief Executive Officer for maintaining close oversight of national developments and making effective use of external financial advice from consultants PIXEL.

 

Councillor Gina Blomefield raised concerns regarding underperformance in car park enforcement and income from annual parking permits and requested that these matters be included in the Council’s Scrutiny Programme for autumn 2025. It was confirmed that enforcement activity had already been strengthened, and that a revised Parking Strategy would be presented to Cabinet in October or November 2025.

 

Cabinet reiterated the importance of maximising local revenue sources in light of expected reductions in government grant funding. Councillors welcomed the 2024/25 outturn surplus and supported the transfer of part of the surplus to the Transformation Reserve. It was further noted that although current higher interest rates and limited borrowing had temporarily benefitted the Council’s financial position, significant future challenges remained. These included the impact of the Fair Funding Review and the potential for local government reorganisation within the coming years.

 

 The recommendations were proposed by Councillor Patrick Coleman

and seconded by Councillor Mike Evemy.

 

The recommendations were put to the vote and agreed by Cabinet.

 

Voting record:

6 For,  0 Against, 0 Abstentions.

 

Meeting: 07/07/2025 - Overview and Scrutiny Committee (Item 200)

200 Financial Performance Report 2024-25 Quarter 4 pdf icon PDF 806 KB

This report sets of the outturn position for the 2024/25 financial year.

 

Purpose

That the Committee scrutinises the report and agrees any recommendations it wishes to submit to Cabinet on 9 July 2025.

 

Cabinet Member

Councillor Patrick Coleman

 

Lead Officer

David Stanley – Deputy Chief Executive

Michelle Burge – Chief Accountant

Additional documents:

Minutes:

The purpose of the report was to set out of the outturn position for the 2024/25 financial year.

 

The report was introduced and the follow points made:

  • The final outturn showed a surplus of £778,000, £262,000 above the budgeted surplus of £516,000. This exceeded earlier projections of £250,000 at Q2 and £435,000 at Q3.
  • There was significant movement in housing benefit overpayment figures, with an additional £236,000 income recorded. This was mainly due to adjustments ensuring overpayments were accurately identified and recovered via the financial and Civica housing benefit systems.
  • There was also an improvement in Trinity Road service charges, with some energy generated from the solar panels and core costs recovered
  • Treasury management showed a £60,000 adverse movement between Q3 and outturn.
  • It was reported that the total in-year cost of Phase 1 of the Publica transition was below the £182,000 provision included in the budget.

 

Across the period, 2023-24 and 2022-23, the Council drew a total £1.852 million from the Financial Resilience Reserve to support its revenue budget. Following a November 2023 motion, the Council committed to replenishing this reserve. With the current £778,000 surplus, £516,000 of which would be returned, and the planned budget for the current year, it was anticipated that £1.874 million would be restored to the reserve.

 

The expected outcome of the Fair Funding Review 2.0 was that the Council was likely to face reduced funding in future years. This aligned with the Medium Term Financial Strategy (MTFS), which forecasted a “cliff edge” funding cut around 2026-27. The current outturn position was more favourable, enabling the Council to retain more in earmarked reserves to help mitigate these challenges.

 

Of the overall surplus, £516,000 was transferred to the Financial Resilience Reserve. The remaining £262,000 was recommended for transfer to the Transformation Reserve, which currently held £200,000, to support broader transformation activities.

 

The capital outturn showed slippage and underspend totalling £428,000, slightly above the Q3 forecast. This was mainly due to lower spending on Disabled Facilities Grants and delays in the ORC-funded off-street residential parking scheme for electric vehicle chargers.

 

 

In questioning and discussion it was noted that:

 

  • The £170,000 adverse variance relating to commercial property income was mainly due to the former Wilko store in Tipton being vacant for the financial year, causing lost rent and additional costs. A new lease with Worley Stores Ltd commenced in July, including a six-month rent-free period; however, the tenant was responsible for business rates, with annual rent around £80,000 as reflected in the 2024/25 budget. Additional variance resulted from reduced rental income after lease renewals in Seaford (Tesco) and Hereford (Superdrug), reflecting market conditions.

 

  • A £33,000 shortfall in income from public conveniences was reported. A review was planned for September, that would provide an update of the rolling out of charging to all facilities or a review of the fee to ensure cost recovery along with the review of cash-less charging provision.

 

 

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