The Finance, Innovation and Transformation Cabinet Advisory Board met on Monday 7 September 2026 to review the council's financial performance for the first quarter of the financial year. The board noted a projected overspend of £525,000 for the year, primarily due to the administration of Fusion Lifestyle, the leisure centre managers. Decisions were made to support the recommendations in the Treasury and Prudential Indicator Management Report, the Capital Management Report, and the Revenue Management Report.

Treasury and Prudential Indicator Management Report Quarter 1

The board reviewed the Treasury Management and Prudential Indicator position for the first quarter of 2026/27. Jane Fineman, Head of Finance, Procurement and Parking, presented the report, highlighting that the council was forecasting interest income of £2.2 million for the year, an increase of £200,000 on the approved budget. This increase was attributed to having more cash available for investment due to rescheduled capital projects and achieving a higher average interest rate. Councillor David Osborne questioned whether the projected 4.13% interest rate took into account more recent rises in interest rates, to which Ms. Fineman explained that longer-term investments had their rates locked in, while short-term rates were based on forecasts from treasury advisors and current market offerings. The board agreed to support the recommendations to note the Treasury Management and Prudential Indicator position and the forecast for investment and bank interest.

Capital Management Report Quarter 1

The board considered the Capital Management Report for the first quarter. Jane Fineman reported that only £2.4 million of the projected £19.9 million for the Capital Programme had been spent by the end of the quarter. Key areas of expenditure included the Royal Victoria Place (RVP) car park, leisure centre improvements, disabled facilities grants, and the RVP development. Councillor Thomas Mobbs raised concerns about how the capital management programme might change following an announcement about not sharing assets at a unitary level, but Ms. Fineman stated that the current capital plan was for essential projects and was affordable. Councillor Ash Shukla inquired about the tracking of changes to the disabled facilities grant funding and whether it was meeting residents' needs. Ms. Fineman explained that while the amounts had increased, demand in Tunbridge Wells was not as high as in other boroughs, and the funds were held in reserves to be used when needed. The board agreed to support the recommendations to note the actual gross expenditure and net revenue, approve proposed variations to the Capital Programme, approve the inclusion of a new scheme, and approve the proposed movement between years.

Revenue Management Report Quarter 1

The Revenue Management Report for the first quarter indicated a projected budget overspend of £525,000 for the year. Jane Fineman explained that this was largely due to the administration of Fusion Lifestyle, the leisure centre managers, which resulted in costs for keeping the centres open and lost revenue from contracts. The board discussed the decrease in reserves, with Councillor Christopher Hall, Cabinet Member for Finance and Property, noting that while the capital programme demanded expenditure, the council was in a strong position compared to many others with low debt. Councillor Hall also mentioned efforts to generate funds from asset disposals to bolster reserves. Ms. Fineman elaborated on the careful management of expenditure, which included securing favourable deals on utilities, active procurement, and applications for refunds on business rates. She also highlighted increased income from parking as town developments neared completion. Councillor Ukonu Obasi questioned the council's plan for non-performing assets, and it was confirmed that a list of surplus assets was maintained, with plans to market them for rental or disposal. The board agreed to support the recommendations to note the quarter one net expenditure, note the anticipated year-end net expenditure and the need for cost management, and to transfer the balance of the Grant Volatility Reserve to the Capital and Revenue Initiatives Reserve.

The meeting concluded with the confirmation of the next meeting date as Monday, 5 October 2026.