Issue - meetings

Financial Performance Report 2025-26 Quarter 2

Purpose:

This report sets out the second quarterly budget monitoring position for the 2025/26 financial year.

Recommendations:

That Cabinet resolves to:

1. Review and note the financial position set out in this report.

2. Approve the additional transfers to earmarked reserves as set in paragraph 4.11 of the report.

3. Endorse the principle to transfer 100% of any year-end Planning Fee income (over and above the budgeted level) to the Planning Appeals earmarked reserve, as set out in paragraph 4.22 of the report.

4. Approve the reallocation of the UKSPF capital budget as follows:

a. £0.229m to Rural England Prosperity

b. £0.060m to UK Shared Prosperity Fund (UKSPF Capital)

This results in a net reduction of £0.038m, in line with allocations from Government.

Additional documents:

Decision:

The purpose of the report was to set out the second quarterly budget monitoring position for the 2025/26 financial year.

Councillor Patrick Coleman, Cabinet Member for Finance, introduced the report and highlighted that the report notified members of any significant variations to budgets, highlighted any key financial issues, and informed members of options and further action to be taken.

The recommendations were proposed by Councillor Coleman and seconded by Councillor Mike Evemy.

Resolved that Cabinet:

1. Reviewed and noted the financial position set out in this report.

2. Approved the additional transfers to earmarked reserves as set in paragraph 4.13 of the report.

3. Endorsed the principle to transfer 100% of any year-end Planning Fee income (over and above the budgeted level) to the Planning Appeals earmarked reserve, as set out in paragraph 4.24 of the report.

4. Approved the reallocation of the UKSPF capital budget as follows:

a. £0.229m to Rural England Prosperity

b. £0.060m to UK Shared Prosperity Fund (UKSPF Capital)

Voting record:

7 For, 0 Against, 0 Abstentions.

Minutes:

The purpose of the report was to set out the second quarterly budget monitoring position for the 2025/26 financial year.

It was noted that the recommendations included reviewing and noting the report, approving additional transfers to earmarked reserves (paragraph 4.13), endorsing the principle that any year-end planning fee income above budgeted levels should be allocated to the Planning Appeals earmarked reserve (paragraph 4.24), and reallocating the United Kingdom Prosperity Fund capital budget, resulting in a net reduction of £38,000.

It was noted that uncertainties remained, particularly in relation to business rates, due to the complexity of the system, recent government adjustments, and the potential impact on pubs and hospitality sectors. He emphasised that, notwithstanding these uncertainties, the general approach of maintaining prudent reserves and funding capacity would continue.

It was further noted that the Financial Performance Report for Quarter 2, outlining the Council’s financial position for the period ending 30 September 2025 had been presented to the Overview and Scrutiny Committee where it had been well received.

Deputy Chief Executive and Chief Finance Officer pointed out that table ES2 (page 223) detailed the positive variations, including additional income from car park fees, planning fees, treasury management, and savings through vacancy management. It was noted that £400,000 of additional planning fee income had been forecast, with a proportion allocated to the Planning Appeals reserve to cover anticipated costs from speculative applications and judicial reviews. It was further clarified that approximately £710,000 from vacancy management was recommended for transfer to the Capacity Building Reserve to support the Council in preparation for local government reorganisation, with flexibility to respond to emerging challenges. It was noted that some positive variations would also be transferred to earmarked reserves to fund specific operational improvements, such as upgrades to car park ticket machines.

It was raised that the report’s paragraph numbering in the recommendations required minor adjustments, with recommendation two relating to paragraph 4.13 and recommendation three to paragraph 4.24. Members noted the effectiveness of the Council’s financial management, attributing positive outcomes to operational efficiencies, service demand management, vacancy management, and collaboration with Publica. It was also noted that income from lettings at Trinity Road and other Council facilities had contributed to the overall positive position.

It was emphasised that the Council’s approach ensured the financial position remained robust and sustainable, supporting service delivery and enabling prudent planning ahead of the transition to the new unitary authority. Councillor Mike Evemy and other members expressed appreciation to Councillor Coleman and the finance officers for their work in achieving strong financial performance and for providing clarity and transparency in the report.

The amended recommendations were proposed by Councillor Coleman and seconded by Councillor Mike Evemy.

The proposal was put to the vote and agreed by Cabinet.

Voting record:

7 ... view the full minutes text for item 188

Meeting: 05/01/2026 - Overview and Scrutiny Committee (Item 285)

Webcast for 05/01/2026 - Overview and Scrutiny Committee

285 Financial Performance Report 2025-26 Quarter 2 PDF 963 KB

Purpose

This report sets out the second quarterly budget monitoring position for the 2025/26 financial year.

Cabinet Member

Councillor Patrick Coleman, Cabinet Member for Finance

Lead Officer

David Stanley, Deputy Chief Executive Officer and S151

Additional documents:

Minutes:

The purpose of the report was to set out the second quarterly budget monitoring position for the 2025/26 financial year.

The report was introduced by Councillor Patrick Coleman, Cabinet Member for Finance, and David Stanley, Deputy Chief Executive. The report was introduced and the following points made:

The financial outturn showed several positive variances, with transfers to earmarked reserves helping to mitigate future financial pressures.
Additional income from development management fees being set aside in an appeals reserve, savings from vacancy management transferred to reserves, and additional treasury management income allocated to support longer-term financial resilience in the context of LGR and potential interest rate reductions.
Car parking income was also reported to be performing positively, with additional income forecast at Quarter 2 and strong performance into Quarter 3.

In questioning and discussion, the following points were noted:

Vacant posts in transformation, learning and organisational development, and strategic housing had been reviewed as part of the Council’s vacancy management process. The Council had appointed a Transformation Support Officer and determined that sufficient capacity existed to deliver the transformation programme before LGR. The Learning and Organisational Development roles were no longer considered necessary in the context of LGR. In relation to strategic housing, it was concluded that existing resources were sufficient. These decisions had contributed to the release of £710,000 to reserves.

Additional costs of supporting the Corporate Plan would depend on how the LGR programme was developed and funded across the county. The £710,000 transferred to the capacity-building reserve by Quarter 2 indicated the likely scale of support required. Any additional LGR-related costs would be considered as part of the budget-setting process in February, with a detailed assessment included in the Budget and Medium-Term Financial Strategy. £1 million over the next two financial years was the level of reserve that might be required to support service delivery.
The refreshed Corporate Plan did not require additional resources to deliver its priorities.
The Council reviewed how waste was collected in Bourton-on-the-Water, including considering the use of fewer but larger bins to reduce collection requirements and address areas with persistent waste issues. Work was also underway with fast-food outlets, and a pilot scheme was expected to be introduced.

Break 17:28 – 17:33

Issue - meetings

Financial Performance Report 2025-26 Quarter 2

Meeting: 08/01/2026 - Cabinet (Item 188)

Meeting: 05/01/2026 - Overview and Scrutiny Committee (Item 285)

Related Pages