The Finance and Procurement Select Committee of Wiltshire Council met on Thursday 29 January 2026 to review the council's financial performance for the third quarter of the 2025/26 financial year, discuss the Treasury Management Strategy for 2026/27, and consider the Housing Revenue Account budget and rent setting for 2026/27. The committee also reviewed the reprocurement of the electricity and gas purchasing contract and received an update on the council's green tariff.

Financial Year 2025/26 - Q3 Revenue Budget Monitoring

The committee received an update on the revenue budget monitoring for the third quarter of the 2025/26 financial year. Councillor Gavin Grant, Cabinet Member for Finance, reported that the council was forecasting an underspend of £0.245m for the year, a significant improvement from the previous quarter's projected overspend. This positive movement was attributed to robust cost control measures, windfall income, and effective management of pressures, particularly in care budgets. However, underlying pressures in Adult Services and Families & Children's Services remain a concern, with officers continuing to implement actions to address these. The committee noted the use of reserves to fund specific initiatives, such as Family Practitioner posts and Wraparound Childcare costs, and the transfer of funds to support council-wide enforcement activity. A detailed breakdown of variances across directorates was presented, highlighting pressures in care budgets and underspends in areas like Highways & Transport and Information Services. The committee also noted the projected operating surplus on the Housing Revenue Account (HRA) and the significant overspend against Dedicated Schools Grant (DSG) budgets, contributing to a cumulative DSG deficit. The committee requested further information on the factors contributing to the Q4 deficit, how the £16m underlying pressures were mapped, details on pension debt, and clarification on EHCP demand forecasting and its relation to transport costs.

Financial Year 2025/26 - Q3 Capital Budget Monitoring

The committee reviewed the Capital Programme for 2025/26 as at the end of December 2025. Councillor Gavin Grant reported that the revised quarter three budget stood at £196.777m, with a total capital expenditure of £140.142m to date. The report detailed various budget movements, including virements between schemes, additional budgets funded by grants and developer contributions, and the reprofiling of budgets into future years or bringing them forward to align with delivery timescales. Significant movements were noted in the Care and Wellbeing, Children and Education, Resources, Highways & Transport, and Housing Revenue Account (HRA) directorates. The committee discussed specific projects, including the Disabled Facilities Grant programme, the Stone Circle Housing Company Loan, and the Council House Build Programme, noting delays and budget adjustments. The committee resolved to note the report and requested further information on the factors contributing to the Q4 deficit in May 2026, how the £16m underlying pressures were mapped, and details on pension debt.

Treasury Management Strategy Statement 2026/27

Councillor Gavin Grant presented the Treasury Management Strategy Statement for 2026/27, which recommended the approval of Prudential and Treasury Indicators and the overall strategy. The committee noted the significant projected increase in borrowing for 2026/27 and 2027/28, primarily to fund capital programme schemes. Concerns were raised about the length of debt repayment periods and the lack of direct asset backing for some borrowing. The committee received confirmation that Growing Places Infrastructure Fund loans are government-backed, with the primary risk being a reduction in recirculating funds due to defaults or repayment extensions. The committee also requested further details on the criteria for ethical investments, noting that some categories were excluded based on risk assessment, such as investments in certain countries or the arms industry. The committee resolved to note the strategy statement and requested further details on ethical investment criteria.

Housing Revenue Account (HRA) Budget Setting 2026/27 Including Dwelling Rent Setting and 2026/27 30 Year Business Plan Review

The Director of Assets presented an update on the proposed Housing Revenue Account (HRA) Annual Revenue Budget and Capital Programme for 2026/27, including rent setting, and an update on the 30-year Business Plan. The report highlighted policy-driven pressures, increased borrowing needs, and the challenging economic climate impacting the HRA. Proposed rent increases, following government policy, were explained as necessary to offset rising costs and fund essential investments. The committee expressed concern about the increase in compensation payments and legal advice costs, questioning the prudence of compensation over prevention. They also inquired about the Minimum Repair Reserve and its transfer to the HRA reserve, the council's strategy for disposing of expensive-to-maintain properties, and the specifics of EPC targets. The committee resolved to note the report and requested that an item on HRA finances be added to the forward work plan.

Reprocurement of Electricity and Gas Purchasing Contract

Councillor Mel Jacob, Deputy Leader and Cabinet Member for Communities, Engagement, and Corporate Services, presented a report on the recommended procurement strategy for electricity and gas supplies from April 2027. The strategy involves awarding a contract through a Public Sector Framework, with an estimated total spend of £45m over five years. The committee noted that the council's aim to be carbon neutral by 2030 had been considered, with the option to purchase green electricity included in the contract. They also noted the six-month notice period required for contract extensions and that the table detailing electricity prices excluded green tariffs. The committee resolved to note the report.

Green Tariff Electricity Update

Councillor Mel Jacob also presented an update on the council's Green Tariff (GT) electricity. The report indicated that it was not contractually possible to remove the GT in the current financial year, but notification could be given to exit the agreement for the 2026/27 financial year by 25 February 2026. The estimated saving for 2026/27 was forecast at £0.03m. The committee noted that removing the GT would mean the council could no longer report electricity as zero carbon, adding approximately 3,800 tonnes of carbon to its Greenhouse Gas Report. The committee resolved to note the further information provided, report its findings to Full Council on 24 February 2026, and noted that the cost of the green tariff had reduced significantly and would be variable.

Forward Work Programme

The committee approved the Forward Work Plan and resolved to add an item on Local Authority Trading Companies (LATCOs) to it.

The meeting concluded with the date of the next meeting being confirmed as 11 February 2026.