The Finance and Procurement Select Committee of Wiltshire Council is scheduled to convene on Thursday, 29 January 2026, to review the council's financial performance and future strategies. Key discussions are expected to centre on budget monitoring for the current financial year, the proposed Treasury Management Strategy for the upcoming year, and the budget setting for the Housing Revenue Account. Additionally, the committee will consider the reprocurement of the council's electricity and gas purchasing contract.

Financial Year 2025/26 - Q3 Revenue Budget Monitoring

The committee is scheduled to review the third quarterly revenue budget monitoring forecast for the financial year 2025/26, based on information available as of 31 December 2025. The report indicates a projected underspend of £0.245m for the year, representing an improvement of £6.903m compared to the quarter two forecast. This positive movement is attributed to robust cost control measures and some unexpected income. However, underlying pressures remain, particularly within care budgets for Adults and Families and Children's services, where significant overspends are still forecast. The report also details planned drawdowns from various reserves to fund specific activities and notes the financial position of the Housing Revenue Account (HRA), which is forecasting a net operating surplus of £0.299m. A notable concern is the projected overspend against Dedicated Schools Grant (DSG) budgets, leading to a total deficit forecast of £51.747m.

Treasury Management Strategy Statement 2026/27

A key item on the agenda is the Treasury Management Strategy Statement for 2026/27. This report outlines the council's approach to managing its borrowing, investments, and cash flows. It will cover prudential and treasury indicators for the next three years, debt management decisions, the Minimum Revenue Provision Policy, and the Annual Investment Strategy. The strategy aims to ensure the council operates within statutory guidance and best practices, balancing the pursuit of optimum performance with proper levels of security and liquidity. The report details the council's capital expenditure plans, financing needs, and borrowing requirements, including projections for the Capital Financing Requirement (CFR) and the Liability Benchmark. It also addresses the council's borrowing strategy, policy on borrowing in advance of need, and debt rescheduling considerations.

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

The committee will receive an update on the proposed Housing Revenue Account (HRA) Annual Revenue Budget and Capital Programme for 2026/27, including proposals for dwelling rent setting. A significant aspect of this discussion will be the proposed rent increase for council tenants, which forms the financial basis for the HRA Business Plan. The report highlights the ongoing need to focus on housing quality, compliance with regulatory environments, decarbonisation efforts, and support for vulnerable residents. The proposals aim to ensure a balanced budget for the HRA for 2026/27, critical for maintaining a strong and effective service. An update on the 30-Year Business Plan will also be provided, addressing financial pressures and the revised scale of the development programme.

Reprocurement of Electricity and Gas Purchasing Contract

The committee is set to consider the reprocurement of the council's electricity and gas purchasing contract, which is due to expire on 31 March 2027. The current arrangement, managed through West Mercia Energy (WME), has been assessed as meeting the council's objectives for service quality, cost, budget certainty, billing accuracy, system compatibility, and access to green tariffs. The report indicates that utilising a Public Sector Framework and a direct award to the existing provider, WME, is the recommended approach. This strategy is expected to provide value for money and flexibility, with the potential for advance energy purchasing to secure competitive prices. The contract covers a significant annual spend of approximately £9m and is designated as a key decision requiring cabinet approval.

Green Tariff Electricity Update

An update will be provided on the council's current position regarding its Green Tariff (GT) electricity. This follows a motion referred to the committee by Full Council concerning the removal of the GT to save on additional annual fees. The report clarifies that it is not contractually possible to remove the GT in the current financial year (2025/26) and that any decision to exit the contractual agreement for 2026/27 would require notification by 25 February 2026. The financial impact of removing the GT in 2026/27 is forecast to be around £0.03m. The report also notes that the new energy supply contract, commencing April 2027, will include flexible provision to opt-in or opt-out of the GT. Removing the GT would mean the council could no longer report electricity consumption as zero carbon, adding approximately 3,800 tonnes of carbon to its Greenhouse Gas Report.

Forward Work Programme

Finally, the committee will review and approve its forward work programme, taking into account any decisions made during the meeting. This ensures that the committee's future activities align with its scrutiny responsibilities and the council's strategic priorities.