Purpose

To note the report and the
issues raised on this.

Decision

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.

Reasons for the decision

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.

Alternative options considered

These are considered as part of the ongoing
development of the Strategic Plan and the Medium Term Financial
Strategy.