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Financial Performance Report - Q4 2025/26

 

 

Meeting: 01/07/2026 - Cabinet (Item 262)

262 Financial Performance Report - Q4 2025/26 pdf icon PDF 981 KB

Purpose

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

 

Recommendations

That Cabinet resolves to:

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

2.    Approve the transfer to and from reserves as set out in Section 6 and Annex C.

3.    Approve the carry forward of unspent capital budget included in paragraph 7.5 of £0.858m into the 2026/27 Capital Programme.

Additional documents:

Decision:

The purpose of this item was to set out the full year budget monitoring position for the 2025/26 financial year.

Councillor Patrick Coleman, Cabinet Member for Finance  introduced the report which set out recommendations to review and note the outturn position, approve transfers to and from reserves, and carry forward an unspent capital budget of £858,000 into the 2026/27 capital programme.

Members were asked to note that the financial year had concluded in line with previous quarters, with generally positive outcomes and that earlier prudent financial decisions had supported a stable overall position. It was further noted that the Council remained in a sound financial position compared to many other authorities, with continued emphasis placed on maintaining a transparent, accurate and compliant financial framework in preparation for future reporting periods.

Councillor Coleman thanked the Finance Team for their work throughout the year in managing, analysing and reporting the Council’s financial position.

The Leader asked Cabinet members to note the Overview and Scrutiny Committee’s comments, which expressed concern regarding the financial outturn position associated with UBICO and associated risks, and requested continued close monitoring. Members also noted the Overview and Scrutiny Committee’s support for the allocation of £2 million towards local government reorganisation costs, whilst acknowledging that limited central Government funding meant a significant proportion of costs would need to be met by local authorities, including through the use of reserves pending future savings from reorganisation.

The recommendation was proposed by Councillor Patrick Coleman and seconded by Councillor Tristan Wilkinson.

Cabinet RESOLVED to:

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

2.    Approve the transfer to and from reserves as set out in Section 6 and Annex C.

3.    Approve the carry forward of unspent capital budget included in paragraph 7.5 of £0.858m into the 2026/27 Capital Programme.

 

Voting record:

8 For, 0 Against, 0 Abstentions

 

Minutes:

The purpose of this item was to present the final budget monitoring position and financial outturn for the 2025/26 financial year.

Councillor Patrick Coleman, Cabinet Member for Finance, introduced the report, which presented the Council's final financial position for the year ending 31 March 2026. Cabinet was asked to review and note the outturn position, approve the proposed transfers to and from earmarked reserves, and approve the carry forward of an unspent capital budget of £858,000 into the 2026/27 Capital Programme.

Members noted that the financial year had concluded broadly in line with previous quarterly forecasts, with the Council delivering an overall positive financial outcome. It was recognised that prudent financial management throughout the year, together with earlier strategic decisions, had contributed to a strong and resilient financial position. Members also noted the importance of maintaining a transparent, accurate and financially sustainable position in advance of local government reorganisation.

The Deputy Chief Executive highlighted a number of positive financial outcomes, including higher than anticipated planning fee income, stronger than budgeted car parking income, and the benefits arising from vacancy management measures introduced during the year. Members also noted the proposed increase in earmarked reserves, reflecting the Council's prudent approach to managing financial risk, supporting future priorities, and preparing for the transition to local government reorganisation. This included provision for Local Government Reorganisation costs, future Local Plan work, treasury management risks and other identified financial pressures.

Members also considered areas where financial performance had been less favourable. Particular concern was noted regarding the financial outturn reported by UBICO, where the final overspend had increased significantly compared with the Quarter 3 forecast. Officers advised that discussions had already taken place with UBICO management to address forecasting accuracy and financial management, with further meetings planned to ensure closer monitoring and improved budget control during the current financial year.

The Leader drew Members' attention to the comments of the Overview and Scrutiny Committee, which had expressed concern regarding the UBICO financial outturn and requested that Cabinet continue to monitor the position closely. Members also noted the Committee's support for the allocation of £2 million from reserves towards the Council's share of Local Government Reorganisation costs, whilst recognising that only limited Government funding had been made available and that councils would therefore need to meet a significant proportion of these costs themselves pending future efficiencies arising from reorganisation.

Members welcomed the positive overall financial outturn and recognised the importance of maintaining strong financial resilience during a period of significant organisational change. It was noted that the Council's healthy reserve position provided flexibility to respond to emerging priorities and enabled investment in key service improvements where required. Members also welcomed the prudent approach taken in setting aside funding to manage future risks and support strategic priorities ahead of local government reorganisation.

Cabinet placed on record its appreciation for the work of the Finance Team throughout the year in managing, monitoring and reporting the Council's financial position. Particular thanks were expressed to officers for the quality of  ...  view the full minutes text for item 262

Meeting: 29/06/2026 - Overview and Scrutiny Committee (Item 355)

355 Financial Performance Report - Q4 2025/26 pdf icon PDF 965 KB

Purpose

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

 

Accountable Member

Councillor Patrick Coleman, Cabinet Member for Finance

Report Author

Michelle Burge, Chief Accountant and Deputy Section 151 Officer

 

**Report to follow**

 

 

Additional documents:

Minutes:

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

 

The report was introduced by Councillor Patrick Coleman the Cabinet Member for Finance, and David Stanley, Chief Finance Officerwho highlighted the following points: 

 

·         The outturn financial position was positive, increasing the surplus by £206,000 compared to Q3 to a total revenue surplus of £251,000.

·         Key drivers included higher-than-expected car park income (with £165,000 earmarked for new ticket machines) and strong planning fee income (£710,000 above budget, with full provision set aside due to appeal risk).

·         The Ubico contract, which ended the year £166,000 over budget, prompted further work on improved forecasting and cost mitigation.

 

In questioning and discussion, the following points were noted:

  • The Ubico contract budget within the Medium-Term Financial Strategy had been set using inflation assumptions on fuel, pay awards and other costs, and would increase across future years accordingly.

·         Work was ongoing with Ubico to improve monthly forecasting and monitoring of fuel usage and costs.

·         Vacancy management required all posts to be approved before filling, with senior review of business cases, meaning only essential roles were recruited to while some vacancies were held or removed, generating budget savings and a positive financial variance.  Resource allocation remains a political decision. Financial monitoring would identify whether the budget was underspent or overspent, with any available surplus requiring decision by the administration on whether and how it should be allocated in line with their priorities.

·         Additional postage costs from the “LIFT” project were not fully covered by the original project budget, as it related to subsequent processing by the revenues and benefits team.

·         Under the Ubico partnership arrangement, the Council retained financial risk for Ubico costs, with limited ability to apply financial penalties.

  • Increased car parking income was due to both higher usage and sustained visitor numbers, with around a 20% rise in car park activity alongside changes in stay patterns.

·         The Publica Phase 2 had been estimated to cost £300,000 for service transfer plus a similar amount for redundancy. The actual staffing costs following transfer in July 2025 were lower than expected.

·         The £2m LGR reserve was acknowledged as a prudent financial measure to manage the costs of Local Government Reorganisation.

·         The Council’s risk register identified ongoing capacity issues within planning enforcement. 

  • Planning decisions were based solely on planning policy and not on financial considerations. Adequate resources would be provided to deliver key priorities, including the Local Plan, but only after reviewing whether service improvements or different ways of working could address pressures before committing additional funding.
  • Electric vehicle charging points generated a surplus because the Council purchased electricity at a lower cost than it charged users, with minimal maintenance costs incurred to date.
  • Occupancy data was available for individual car parks, including usage patterns, ticket sales and space availability.

Recommendations to Cabinet

1.            Ubico Contract: To inform the Cabinet of concerns around the Ubico contract and support more rigorous monitoring and forecasting of costs following delayed notification  ...  view the full minutes text for item 355

 

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