The Cabinet Shareholder Committee of Northumberland Council met on Tuesday 09 June 2026 to discuss the financial performance and future budget of Advance Northumberland. The committee was scheduled to review the company's performance for the 2025-26 financial year and consider the proposed budget for 2026-27.

Advance Northumberland Update

The main item scheduled for discussion was an update on Advance Northumberland, the council's wholly-owned company. The report, presented by Councillor Nicholas Oliver (Cabinet Member for Finance and Value for Money), requested that the committee note the financial performance of Advance Northumberland for the 2025-26 financial year and approve the budget for the forthcoming year. The aim was to ensure that Advance Northumberland's objectives remained aligned with those of the council.

The report detailed Advance Northumberland's business strategy, which is based on a commercially driven approach emphasising sustainability, resilience, and long-term growth. The company operates across five key business areas: Developments (including the 'Ascent' brand), Housing, Commercial (industrial, commercial, and retail property), Green Futures (Biodiversity Net Gain and sustainable business opportunities), and Projects (project management for Advance Northumberland and the council).

Key Performance Indicators for FY26 were presented, showing that the company had met or exceeded most of its targets. Financially, Advance Northumberland reported a Profit Before Tax (PBT) of £1.565 million for FY26, exceeding the adjusted budget by £421,000. Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) also surpassed expectations. The report highlighted the company's significant contribution to the local economy, including economic contribution to Northumberland, interest income to the council, and estimated business rates and council tax revenue.

The report also provided an update on the company's governance, including the appointment of Andrew Moffat CBE as the new Chair of the Advance Northumberland Group and Fiona Creighton as a new Non-Executive Director. Health and Safety performance was noted as being strong, with all annual targets met. Operational performance across the different business areas was detailed, including the housing portfolio, commercial investments, Ascent Homes' housebuilding activities, and the work of the Projects division on various council and group initiatives. The Advance Green Futures subsidiary was highlighted for its work in establishing a significant habitat bank at Potland Burn, contributing to Biodiversity Net Gain (BNG) initiatives.

The draft financial outturn for 2025-2026 was presented, showing a Group revenue of £67,192,000 and a PBT (excluding revaluation) of £1,565,000. The report detailed the financial performance of each subsidiary company, noting that the delay in the proposed financial restructure of Advance Northumberland had resulted in additional unbudgeted interest payments to Northumberland County Council.

The proposed budget for the Advance Northumberland Group for the financial year 2026-2027 was also presented for approval. This revised budget, approved by the Advance Northumberland Board on 30 April 2026, assumes that the financial restructure will not be implemented until 01 April 2027. The budget forecasts growth in revenue and EBITDA compared to the previous year, with significant investment planned for commercial projects.

The committee was also scheduled to consider the confidential appendix relating to the draft Advance Northumberland accounts for 2024-25.

The meeting's agenda also included standard items such as apologies for absence, confirmation of previous minutes, and disclosures of members' interests. There was also an item for urgent business.