The Finance & Performance Scrutiny committee is scheduled to review the council's financial performance and future work programme. Key discussions are expected to centre on the financial outturn for December 2025, treasury management activities, and the collection of sundry debts.

Financial Outturn - December 2025

The committee will be presented with the financial outturn position as at December 2025. The report indicates a forecast improvement of £63k against the revised budget for the General Fund, with an anticipated transfer of £378k to General Fund balances, an increase from the originally budgeted £315k. This improvement is attributed to service-level variances, additional approved budgets, and improved interest income.

Favourable variances are noted in Development Control, with an additional £450k in planning fee income, and in Recycling, which has seen £337k in Extended Producer Responsibility income. Refuse Collection also shows an increase of £140k in trade waste income. However, adverse variances are highlighted in Homelessness, with a £231k overspend in Bed and Breakfast accommodation net of Home Office funding, and staffing pressures across various departments, including Legal Services (£184k in agency costs) and Development Control (£152k in agency staff costs). A pay award higher than budgeted is also expected to contribute £254k to adverse variances across all services.

The Housing Revenue Account (HRA) is forecasting a surplus of £75k, a significant improvement from a budgeted deficit of £40k. This is driven by an additional £189k in rental income, partially offset by employee cost pressures. The report also details capital programme expenditure, with £10.6m spent against a profiled budget of £35.5m by the end of December 2025.

Treasury Management - Quarter 4 2025/2026

This report will inform the committee about the council's treasury management activities during the fourth quarter of the 2025/2026 financial year. The council currently holds £52,062,263 in long and medium-term debt. For the General Fund, the debt stands at £28,892,680. The report notes that average borrowing rates continue to increase, exacerbated by the ongoing energy crisis.

Economic forecasts suggest that interest rates are likely to remain stable in the short term, with a possibility of increases later in the year if energy costs continue to rise. The Bank of England has kept interest rates unchanged at 3.75%. The council's investment strategy prioritises safeguarding principal and interest repayment, ensuring liquidity, and then maximising investment returns. As of 31 March 2026, the council held investments totalling £746,234, earning interest at approximately 90% of the base rate.

The report also details borrowing activities, including £18,000,000 in additional borrowing during the year, split between the General Fund (£13,000,000) and the HRA (£5,000,000). This borrowing is primarily to finance the capital programme and existing commitments. The HRA has a self-financing settlement with £67,652,000 borrowed from the Public Works Loan Board (PWLB), with repayments commencing in March 2020.

Sundry Debts - Quarter 4 2025/2026

The committee will receive an update on the position of sundry debts as of 31 March 2026. The overall sundry debt stood at £3,836,873. The key performance indicator (KPI) for debt over 90 days, as a percentage of all sundry debt, was 37.5%, exceeding the target of 25%. This figure has been adjusted for homelessness-related debt, instalment plans, and items in dispute. The total number of invoices over 90 days has decreased to 1,076.

A provision for doubtful debts of £124,000 has been made against the year-end balance. Homelessness bonds, which are part of a homelessness prevention scheme, represent a significant portion of the debt over 90 days. While efforts are made to recover these amounts through contact with tenants, legal action is generally not pursued to align with the council's Anti-Poverty Strategy. The report details the breakdown of debt over 90 days by type, with Other LA and Estates showing significant increases.

Finance & Performance Scrutiny Work Programme for 2025/2026 & 2026/2027

The committee will be updated on its future work programme for the 2025/2026 and 2026/2027 financial years. This includes scheduled reviews of various services, such as Commercial Estate, Housing Services (Rents), Business Rates and Pooling, Performance Management Framework updates, and Environmental Health. The programme also outlines regular quarterly reviews of financial outturn, treasury management, and sundry debts.

The work programme is structured to support the council's corporate aims of People, Places, and Prosperity, with specific dates allocated for each review and the lead officers responsible. Future items include a joint budget scrutiny meeting with the Scrutiny Commission and reviews of services like Planning and Streetscene Services.