The Finance, Regeneration and Property Scrutiny Select Committee met on 16 September 2025 to discuss budgetary control, savings, and responses to government consultations. The committee reviewed the financial position of the council at the end of July 2025, progress towards savings targets for the 2026/27 budget, and submissions made regarding the Fair Funding Review and Council Tax System Modernisation consultations. Members noted a net favourable variance of £729,645 as at the end of July.

Budgetary Control and Savings

The Head of Finance and Section 151 Officer updated the committee on the council's financial position at the end of July 2025, in accordance with the council's financial procedure rules. The report highlighted a few key areas:

• Salaries: An underspend of £92,050 was reported due to vacancies above the budgeted position.
• Revenue Budget: An increase of £148,702 on the revenue budget was attributed to additional reserve contributions and grants.
• Income: A small under-recovery of £5,553 in income for Development Control¹ and Land Charges was offset by parking income.

The report identified variations to the original budget estimates, resulting in a net favourable variance of £729,645.

The committee also discussed the savings target of £600,000 to be achieved by the time the budget for 2026/27 is set. A milestone of saving a minimum of £300,000 by summer 2025 had been set to feed into the budget-setting process. An outturn review of expenditure and income against current budgets had been undertaken, and identified £182,500 in savings. Factoring in an overprovision of inflation for the Waste Services Contract, the revised savings total came to £302,500, meeting the milestone target.

The Cabinet Member for Community Services, Councillor Des Keers, provided an overview of financial successes and pressures, highlighting the council's strong financial performance, including fully audited accounts, high rates of council tax and business rates collection, and successful leveraging of over £1.5 million in external grant funding for carbon reduction projects at leisure facilities.

Members raised concerns about the financial challenges represented by temporary accommodation² and were pleased to note a reduction in clients. Clarification was sought on Leisure Trust utility support payments and car parking arrangements. It was confirmed that utility support was linked to energy price inflation and was expected to decrease.

Government Consultations

The committee reviewed and noted the responses submitted by the council in respect of the Fair Funding and Council Tax System Modernisation consultations.

Fair Funding Review

The consultation lacked sufficient detail to predict the impact on the council, although significant changes to the council's funding were expected. The consultation indicated that the overall level of council funding, known as 'core spending', would increase by 2.6% over the next three years to 2028/29. However, this included increases in council tax which had been assumed to occur at the level proposed for capping and meant that council tax as a proportion of 'core spending' would increase over the spending period. A potential negative impact on district/borough funding as a consequence of resources being directed towards social care and children's services was noted.

Council Tax System Modernisation

The council's response supported the retention of the 10-month statutory instalment plan on the grounds of maintaining flexibility for residents, addressed the proposal to redefine the severely mentally impaired disregard and noted that the main barrier was GP certification. It was reported that the majority of neighbouring authorities in Kent and the professional body in revenue and benefits also supported the retention of the 10-month instalment for council tax.

The committee noted that there was no time limit for retrospective council tax banding appeals and this could create significant operational and financial challenges if refunds were required for changes dating back to the introduction of council tax in 1993. The council supported introducing a six-year limit.

Work Programme

The committee's work programme for 2025/26 was attached for information. Members were invited to suggest future matters for 2026/2027 by liaising with the Chair of the Committee and the Scrutiny Officer.