The Melton Borough Council Cabinet met on Wednesday 15 July 2026 to review provisional year-end budget positions for the General Fund and Housing Revenue Account, discuss treasury management performance, and approve the write-off of irrecoverable debts. Key decisions included approving revenue and capital carry forwards for both the General Fund and the Housing Revenue Account, recommending the approval of the Treasury Management Annual Report 2025/26 to the Council, and authorising the Chief Finance Officer to write off a total of £117,127.78 in irrecoverable debts.

General Fund Revenue and Capital Budget Provisional Year End 2025/26

The Cabinet noted the provisional outturn position for the General Fund for the 2025/26 financial year. This indicated a net surplus of £97,000 for General Expenses after proposed budget carry forwards of £931,870, which will improve the Corporate Priority Reserve. For Special Expenses in Melton Mowbray, a net surplus of £74,000 was projected after accounting for carry forwards, which will fund proposed transfers into the next financial year. The General Fund capital programme showed a significant underspend of £13.8 million against the approved budget of £14.928 million, with £13.68 million of this being carried forward into 2026/27. The majority of this underspend relates to the multi-year Stockyard project. Cabinet approved the revenue and capital carry forwards and delegated authority to the Director for Corporate Services to make any necessary amendments following the finalisation of accounts.

Housing Revenue Account Revenue and Capital Budget Provisional Year End for 2025/26

The provisional year-end position for the Housing Revenue Account (HRA) for 2025/26 was presented, showing an overall overspend of £678,000 against the approved budget. This overspend is attributed to cost pressures and challenges in income recovery, exacerbated by factors such as inflation, increased health and safety work, and higher than budgeted void properties. Cabinet approved revenue carry forwards of £190,000 and capital carry forwards of £2,483,000. The report highlighted that the HRA's financial position, particularly the interest cover ratio, indicates that borrowing for further capital expenditure is currently unaffordable without improvements in income or reductions in expenditure.

Treasury Management and Actual Prudential Indicators 2025/26

The Cabinet reviewed the Treasury Management Annual Report for 2025/26. The report detailed the Council's treasury activities and actual prudential indicators for the year. No new borrowing was undertaken during the year, and the Council's gross borrowing remained within its authorised limit. The Capital Financing Requirement (CFR) for the General Fund decreased to £1,074,000, while the HRA CFR remained at £31,484,000. Investment income for the year was £1.179 million, exceeding the budget by £426,000, partly due to higher-than-expected interest rates. Cabinet recommended the approval of the Treasury Management Annual Report 2025/26 to the Council and noted the actual position of the Prudential Indicators for 2025/26.

Write-off of Irrecoverable Debts

The Cabinet was asked to authorise the write-off of £117,127.78 in irrecoverable debts across Council Tax, Business Rates, Rents, and Sundry Debts. The report detailed the extensive recovery actions taken for each debt before recommending write-off, emphasising that these actions were considered uneconomical or had little prospect of success. Cabinet noted the actions taken to recover outstanding debts and authorised the Chief Finance Officer to write off the specified amounts. The report also provided a historical analysis of debt write-offs over previous years.