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 the same period, and approved the write-off of 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 accounting for proposed budget carry forwards of £931,870. For Special Expenses in Melton Mowbray, a net surplus of £74,000 was reported, with £75,000 approved for carry forward into the next financial year. The General Fund capital programme showed a significant underspend of £13.8 million, with £13.68 million approved for carry forward. The majority of this underspend relates to the Stockyard project which is a multi-year project. Authority was delegated to the Director for Corporate Services to make any final adjustments to these carry forwards following the finalisation of the accounts.

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

The Cabinet reviewed the provisional year-end position for the Housing Revenue Account (HRA) for 2025/26. The provisional revenue outturn showed an overall overspend of £678,000 against the approved budget, with £190,000 requested to be carried forward into 2026/27. This overspend was attributed to cost pressures and income recovery challenges, including increased inflation, contract price increases, and additional health and safety work. The HRA capital programme reported an underspend of £3.799 million against a budget of £8.096 million, with £2.483 million approved for carry forward. The Cabinet noted the provisional year-end position and approved the requested revenue and capital carry forwards.

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 the Council's treasury activities and actual Prudential Indicators for the year. Key findings included 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 million, while the HRA CFR remained at £31.484 million. Investment income for the year was £1.179 million, exceeding the budget by £0.426 million due to higher-than-anticipated interest rates. The report also highlighted the implementation of IFRS9 and its impact on the valuation of investments, noting that a statutory override currently mitigates any direct impact on the General Fund.

Write-off of Irrecoverable Debts

The Cabinet noted the actions taken by the Council to recover outstanding debts and authorised the Chief Finance Officer to write off a total of £117,127.78 in irrecoverable debts. These debts spanned Council Tax (£47,036.28), Business Rates (£47,344.88), Rents (£15,602.62), and Sundry Debts (£7,144.00). The report emphasised that all reasonable recovery methods had been exhausted before these debts were recommended for write-off, ensuring that officer time could be focused on debts with a more realistic chance of recovery. The write-offs are to be set against existing bad debt provisions and can be reinstated if new information regarding recoverability comes to light within the relevant limitation period. The decision was classified as a Key Decision and subject to call-in.