The Melton Council Cabinet met on Wednesday 15 July 2026 to review the provisional year-end financial positions for the General Fund and the Housing Revenue Account (HRA) for the 2025/26 financial year. The Cabinet also reviewed the Treasury Management activities and Prudential Indicators for 2025/26 and approved the write-off of irrecoverable debts totalling £117,127.78.

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

The Cabinet noted the provisional outturn position for the General Fund Revenue and Capital Budget for 2025/26. For General Expenses, there was a net surplus of £97,000 after proposed budget carry forwards of £931,870. Special Expenses for Melton Mowbray showed a net surplus of £74,000, with £75,000 approved for carry forward. The General Fund capital programme had an underspend of £13.8 million, with £13.68 million approved for carry forward into 2026/27. This underspend was largely attributed to the Stockyard project, Disabled Facilities Grant, and Food Waste Vehicles. Authority was delegated to the Director for Corporate Services to make any necessary amendments to the carry forwards following the finalisation of accounts.

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

The Cabinet noted the provisional year-end position for the Housing Revenue Account (HRA) for 2025/26, which showed an overall overspend of £678,000 against the approved budget. This overspend was attributed to cost pressures and income recovery challenges, including increased premiums for fire insurance, higher utility charges, and increased responsive repairs for communal works. The 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, indicated that borrowing for capital expenditure was currently unaffordable, necessitating a focus on improving net cost of service delivery through increased income or reduced expenditure.

Treasury Management and Actual Prudential Indicators 2025/26

The Cabinet recommended to the Council the approval of the Treasury Management Annual Report for 2025/26. The report detailed that no new borrowing was undertaken during the year, and the Council's gross borrowing remained within its authorised limit. The Council's 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 £0.426 million, partly due to higher-than-expected interest rates. The report also noted the implementation of IFRS9, which requires fair value movements of investments to be disclosed, although a statutory override currently prevents these from impacting the General Fund's income and expenditure account.

Write-off of Irrecoverable Debts

The Cabinet authorised the Chief Finance Officer to write off a total of £117,127.78 in irrecoverable debts. This included £47,036.28 in Council Tax, £47,344.88 in Business Rates, £15,602.62 in Rents, and £7,144.00 in Sundry Debts. The report stated that all reasonable recovery methods had been exhausted for these debts, and pursuing them further would divert officer time from more productive recovery efforts. The write-offs are to be set against existing bad debt provisions and can be reinstated if new information suggesting recoverability comes to light within the relevant limitation period. The decision was noted as a Key Decision and subject to call-in.