Agenda item - FIRST QUARTER REVENUE BUDGET MONITORING 2025/26

REPORT OF THE DIRECTOR - RESOURCES

To inform Cabinet of the summary position on revenue income and expenditure forecasts for the financial year 2025/26, as at the end of the first quarter.

RESOLVED: That Committee noted and considered any governance and risk issues in relation to the Cabinet recommendations,

RECOMMENDED TO CABINET:

(1) That Cabinet note this report.

(2) That Cabinet approves the changes to the 2025/26 General Fund budget, as identified in table 3 and paragraph 8.2, a £453k increase in net expenditure.

(3) That Cabinet notes the changes to the 2026/27 General Fund budget, as identified in table 3 and paragraph 8.2, a total £689k increase in net expenditure. These will be incorporated in the draft revenue budget for 2026/27.

(4) That Cabinet delegates to the Director-Resources (in consultation with the Executive Member for Resources) authority to enter in to a Business Rate Pooling arrangement (if available) if it is estimated that it will be in the financial interests of the Council.

REASON FOR RECOMMENDATION: Members are able to monitor, make adjustments within the overall budgetary framework and request appropriate action of Services who do not meet the budget targets set as part of the Corporate Business Planning process.

Audio recording – 1 hour 39 minutes 1 second

The Director – Resources presented the report entitled ‘First Quarter Revenue Budget Monitoring 2025/26’ and highlighted that:

· Paragraph 8.3 should read overachievement £59,000 to reflect what is in Table 3.

· There was a request for a right off a debt for over £11K since the publication of the Agenda so this was added to the report going to Cabinet.

· The Royston Leisure Centre Learner Pool and the Leisure Centres Decarbonisation changes in Table 3 needed tidying up to reflect decisions that had already been made in relation to capital projects.

· The 2024/25 year end position for Parking Penalty Charge Notices (PCNs) had been shown as TBC so there was addition information added to this report about those.

The following Members asked questions:

· Councillor Ruth Brown

· Councillor Ralph Muncer

· Independent Member John Cannon

In response to questions, the Director – Resources stated that:

· There was a real risk that the Princes Mews Car Park would not reopen. It was possible that parking use would shift to other car parks. Overall income usage and income levels would be kept under review.

· The Commercial Refuse & Recycling Service was under the same contract as Garden Waste Collection Service, Table 4 shows that the income is still projected to be on budget, despite Table 5 showing the number of customers decreasing. This would be kept under review.

· There was a net increase in expenditure, this was manageable but would affect future savings targets.

· The information missing from Table 5 about Garden Waste Collection Service is expected to be available in the quarter 2 report.

· Table 5 showed the trends and although this was drastically up for PCNs Table 4 showed this was predicted to be a stable income for the year and not increase significantly.

· Improvements in back rent collection meant getting the money into the Council quicker which reduced the risk of bad debt.

· The investment income forecast in Table 3 was much higher figures due slippage from the 2024/25 capital budget and interest rates being higher than predicted on the Councils investments.

Councillor Vijaiya Poopalasingham proposed and Councillor Paul Ward seconded and, following a vote, it was: