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 2026/27 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. Recommendations were made to Cabinet regarding the Treasury Management, Capital Management, and Revenue Management reports.

Treasury and Prudential Indicator Management Report Quarter 1

The board reviewed the Treasury Management and Prudential Indicator position for the first quarter of the 2026/27 financial year. Jane Fineman, Head of Finance, Procurement and Parking, presented the report, highlighting that the council was forecasting interest of £2.2 million for the year, an increase of £200,000 on the budget. This additional funding is to be directed towards the capital programme. Councillor Osborne questioned whether the projected interest rate of 4.13% accounted for recent rises in interest rates, to which Ms. Fineman explained that longer-term investments had their rates locked in, while short-term rates were subject to forecasts from treasury advisors. The board agreed to recommend that Cabinet note the Treasury management and prudential indicator position and the forecast for investment and bank interest.

Capital Management Report Quarter 1

Jane Fineman also presented the Capital Management Report for the first quarter. She noted 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 projects include £1.6 million for the Royal Victoria Place (RVP) car park, £3.1 million for leisure centre improvements, £1.5 million for disabled facilities grants, and £3.3 million for the RVP development. Councillor Mobbs raised concerns about how the capital management programme would be affected by the announcement of a new unitary authority, but Ms. Fineman reassured members that the current capital plan was for essential projects and would be delivered. Councillor Shukla inquired about the tracking and adequacy of funding for disabled facilities grants. Ms. Fineman explained that while the council received a set amount, demand in Tunbridge Wells had not been as high as in other boroughs, and that any underspend was retained in reserves. The board recommended that Cabinet note the actual gross expenditure and net revenue for the year, 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 board considered the Revenue Management Report for the first quarter, which indicated a projected budget overspend of £525,000 for the year. Ms. Fineman attributed a significant portion of this to the administration of Fusion Lifestyle, the leisure centre managers, which resulted in costs for keeping the centres open and lost revenue. Councillor Obasi expressed concern about the decrease in reserve balances, particularly in light of the upcoming local government reorganisation. Councillor Hall, Cabinet Member for Finance and Property, stated that while vigilance was necessary, he did not foresee dramatic moves or significant changes to fees and charges as a result of the projected overspend. He also noted that revenue streams, especially parking income, were generally strong. The board recommended that Cabinet note the quarter one net expenditure, acknowledge the projected year-end overspend, and approve the transfer of the balance from the Grant Volatility Reserve to the Capital and Revenue Initiatives Earmarked Reserve.