URL: https://rother.moderngov.co.uk/ieDecisionDetails.aspx?ID=1862

Decision Maker:

Outcome:

Is Key Decision?: No

Is Callable In?: No

Purpose: To update Members on the Revenue and Capital Budget Monitoring Position for Quarter 1 2025/26. This report also summarises the position to date on delivery of the savings targets for 2025/26.

Content: Members received the report of the Deputy Chief Executive and Section 151 Officer, which provided an update on the Revenue and Capital Budget Monitoring Position for Quarter 1 2025/26. The report also summarised the position to date on delivery of the savings targets for 2025/26.   The revenue budget and capital programme statements were summarised in Appendices A and B to the report, respectively. Whilst it was an early stage in the financial year, a comprehensive review had been undertaken and Appendix C to the report outlined the current position regarding the agreed savings targets for 2025/26. Members were asked to note the potential reserves position reported in paragraphs 18 and 19 of the report.   The revenue budget (Total Cost of Services) was currently forecast to be £15.966m at year end, compared to the approved budget of £15.716m.  The agreed budget already anticipated a draw from Reserves of £694,000, and this position would increase that to £944,000. The main variances were discussed within the report and summarised in Appendix A to the report.  Members’ attention was drawn to the forecast reductions in planning application fee income, increase in parking income due to good weather over the summer period and pressures from consultancy and interim staff costs, void and repairs within Strategic Asset Management.   An early review of the deliverability of the agreed savings targets for 2025/26 had also been undertaken and the outcome of this was outlined within Appendix C to the report.  In summary, £380,000 was anticipated to be fully deliverable (green status), with £109,000 having been identified as undeliverable in year (red status).  The remaining savings target of £567,000 was anticipated to be partially deliverable in year (amber status).  Work would continue to be undertaken to monitor this position as the in-year monitoring progressed.   The Capital Programme (CP) for 2025/26 and beyond remained under review and was being constantly updated and reforecast as part of the governance improvements introduced by the Corporate Development Team (CDT). The focus was on the affordability of the overall CP to ensure that any negative impact on the revenue budget, due to borrowing and interest costs, was minimised. This would ensure the medium-term affordability of the CP, maximising the use of external grant funding opportunities wherever possible.   The total CP was £183m, including prior year spend, with the projected spend from 2025/26 through to 2028/29 totalling c£115m. The CP had been revised in line with the 2024/25 Budget Outturn report to reflect slippage between years and to capture the amendments agreed at that point, with the anticipated spend for the 2025/26 budget projected at £52m. The phasing to the CP had been further revised and updated as part of the period 3 budget monitoring process and also reflected the further amendments outlined in paragraphs 12 to 17 of the report. The updated CP was at Appendix B to the report.   The Council had £5.00m in General Reserves not earmarked for any specific purpose (plus a further £5.54m in Earmarked Reserves).  If the revenue outturn reported here was realised, the General Reserve would reduce by £944,000 to £4.056m.    Members were asked to note that it was likely, following the Cabinet decisions on two capital schemes, that some abortive costs may be required to be written off, whilst these costs would be kept to a minimum they could be as high as  £900,000.  Additionally, the Council had now received the final valuation for the Hermes Property Fund investment, and this gave  rise to a loss being written off in year in the region of £420,000.  Members noted that, overall, the fund had delivered a positive outcome over the years, so had been a good investment. These factors would bring the forecast General Reserve level to around £2.8m.   Members were given the opportunity to ask questions, and the following points were noted during the discussion:   ·           a General Reserve level of around £2.8m was very uncomfortable; a level of around £5m would be more preferable to be able to go forward into the new unitary authority in the best position possible; ·           the Local Government Settlement was expected to be announced later in December, and the level of reserves would be assessed at that time; ·           Rother District Council had the lowest level of debt in East Sussex and the largest reduction in debt across the country, illustrating the responsible decisions taken; ·           the focus would now be on the highest priorities for the Council and there would be tough decisions to make; ·           the budgeted savings identified from Parish Council Website fees had decreased from £7,000 to £5,000 per annum, as the Council was no longer on track to deliver the higher figure, but this would be clarified with the Head of Digital and Customer Services and confirmed to the Committee after the meeting; ·           work was progressing with the Service and Asset Devolution Framework and an update would be provided in due course, the net effect of which would be cumulative savings to the net revenue budget; and ·           the Council should consider the possibility of transferring any previously completed surveys on the King Offa site to a future purchaser in order to generate further revenue.   RESOLVED: That the report be noted.  

Date of Decision: September 8, 2025