URL: https://democracy.lichfielddc.gov.uk/ieDecisionDetails.aspx?ID=813

Decision Maker: Cabinet

Outcome: Recommendations Approved

Is Key Decision?: Yes

Is Callable In?: No

Purpose: To note the report and the issues raised on this.

Content: To note the report and the issues raised on this. Cabinet:   2.1. Reviewed the report and issues raised within and noted that Leadership Team with Cabinet Members will continue to closely monitor and manage the Medium Term Financial Strategy.   2.2. Approved a Capital Programme virement of £500,000 from the projects identified in para 3.26 to fund essential works to the Friary Outer Car Park. 1.1 The report covers the financial performance from April to November (Period eight) for 2025/26.   1.2 The Medium Term Financial Strategy projected general reserves at 31 March 2026 would be £5,803,301. At this stage, general reserves are forecast to be £5,168,987, a decrease of £634,314 related to •       A lower than budgeted contribution in 2024/25 of (£56,363). •       Approved updates in 2025/26 decreasing the contribution by (£577,951). •       A projected increase contained in this report for 2025/26 of £0.   1.3 Leisure centre expenditure and income is projected to be a further £2,888 lower than the budget and the shortfall will be funded from leisure centre earmarked reserves.   1.4 At the eight month’s stage, there are no significant financial risks that need to be highlighted to the Council as shareholder in relation to LWMTS financial performance.   1.5 The Capital Programme is projected to be £24,269,000 which is (£3,355,000) less than the Approved Budget of £27,624,000. The reasons for this lower spend are detailed at para 3.25.   1.6 Capital Receipts are projected to be (£1,328,000) which is the same as the approved budget.   1.7 In terms of Council Tax, Business Rates, Sundry Debtors and Supplier Performance: •       Council Tax collection in year performance was 74.30% (74.80% in 2024/25) and total arrears were £5,825,734 and the Council’s share is £684,306 (£5,093,252 and £598,267 in 2024/25). •       The Council Tax Collection Fund is projected to be in surplus, with the Council’s c12% share being (£115,000) compared to the Approved Budget of £0. This higher income of (£115,000) will be included in the 2026/27 budget. Council on 8 July 2025 committed the Council’s share of this surplus from 2024/25 to funding a new cohort of apprentices. •       Sundry Debt for income to be collected in the second quarter of 2025/26 has increased by £1,599,741 or 78% higher than for the same period in 2024/25, and the value outstanding at 30 November 2025 has increased by £4,867,798 or 161%. •       Retained Business Rate Income is projected to be (£3,726,000) in line with the Approved Budget. •       The Business Rates Collection Fund is projected to be in surplus, with the Council’s 40% share being (£345,000) compared to the Approved Budget of £0. This additional income of (£345,000) will be included in the 2025/26 budget. As above, the Council’s share of the surplus has been committed. •       Business Rates collection in year performance was 75.60% (74.60% in 2024/25) and total arrears were £1,298,776 and the Council’s share is £519,510 (£1,107,731 and £407,092 in 2024/25). ·       The payment of suppliers within 30 days was 92.66%, which is above our 90% target.   1.8 The Council’s investments achieved a risk status of A+ that was more secure than the aim of A- and yield exceeded all four of the industry standard London Interbank (LIBID) yield benchmarks. These are considered as part of the ongoing development of the Strategic Plan and the Medium Term Financial Strategy.

Date of Decision: February 10, 2026