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Agenda item

Financial Performance Report - Q3 2025-26

Purpose

To set out the third quarterly budget monitoring position for the 2025/26 financial year.

 

Cabinet Member

Councillor Patrick Coleman, Cabinet Member for Finance 

 

Report Author

Michelle Burge, Chief Accountant and Deputy Section 151 Officer

 

 

Minutes:

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

The report was introduced by Councillor Patrick Coleman, Cabinet Member for Finance, and Michelle Burge, Chief Accountant.  The report was introduced and the following points made:

 

·         This quarter report showed little change from the previous quarter.

·         At Q3, a positive variance of £45k was reported, representing a slight improvement from the £16k position previously reported at Q2.

·         100% of planning income above budget was being transferred into a planning appeals reserve, which now stood at £674k.

·         Car parking income had a £256k positive variance at Q3 compared to the budget. £165k was set aside to fund new pay and display machines as part of the 2026/27 capital programme.

·         £700k of savings from vacancies, recruitment and public affairs impacts were transferred into a capacity building reserve to support organisational capacity in preparation for LGR.

·         Current diesel prices were above the budgeted level of around £1.44/litre and could create a budget pressure of approximately £150k.

 

In questioning and discussion, the following points were noted:

·         The council was considered financially resilient at present, although there were acknowledged risks over the medium term. While it was not anticipated that these risks would lead to immediate service disruption or emergency measures, they were being closely monitored, particularly in relation to inflation and energy prices, which remained the main financial pressures over the next two years.

·         An estimated saving of around £600k in street services had been revised downwards following work arising from the Association for Public Service Excellence (APSE) review. Further details of the savings would be provided.

·         It was clarified that a £16,000 forecast overspend related to building control audit fees associated with the Building Safety Regulator, rather than external audit fees. Further details on the audit costs would be provided.

·         Whilst vacancy management provided financial benefits, it carried risks around recruitment and retention. The main concern was uncertainty linked to LGR, which might impact staff stability. A retention strategy was being developed to support recruitment and retention during this period of organisational change.

·         Short-term investment returns of around 3.5%–3.75% were currently being achieved, which reflected the need to maintain liquidity for council funds. In addition, there were longer-term pooled investment funds which delivered higher returns, averaging approximately 4.5% to 5%.

·         Further details regarding the adequate funding of planning enforcement were requested.

·         The budget for Chipping Campden dual use sports facilities which had been around £70,000, was now forecast as £80,000.

·         The £31,000 underspend in legal services related to a vacant contract solicitor post. A paralegal was being brought into the service to provide support.

·         Ubico’s fuel costs were regularly reviewed. Fuel prices had moved adversely, with an estimated impact of around £12k for the month. It was noted that a proportion of energy was purchased in advance through a consortium arrangement with Cheltenham and Forest of Dean and West Oxfordshire Councils to help reduce exposure to price volatility.

·         It was confirmed that the cost for the fuel bunkering had increased to £100k.

·         Waste receptacle replacements were provided at a low cost, as it could be difficult to determine whether damage or loss was due to collection operations, accidental loss, or other causes. In cases where bins were damaged during collection, replacements were replaced free of charge.

 

16:37 – Councillor Lisa Spivey arrived at the Committee meeting.

Supporting documents:

 

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