Agenda item

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The Assistant Director for Finance and Deputy Section 151 Officer presented the revenue, capital, treasury and arrears position for the period ending 30 June 2026. He reported no overall movement against the forecast contribution of £1.189 million to the General Fund reserve, which was expected to produce an end-year reserve balance of approximately £11 million.

In response to a question from the Vice – Chair, Councillor Long on the forecast variable being nil, the Assistant Director for Finance and Deputy Section 151 Officer explained favourable effects from summer weather, including potentially higher car-parking income and reduced fuel use from fewer grass cuts, were expected to feature more prominently in quarter two. These favourable effects were being offset by pressures including pay awards, property maintenance, leisure facilities and public events.

The Assistant Director for Finance and Deputy Section 151 Officer  explained the Council had budgeted for £300,000 of Internal Drainage Board compensatory grant but received confirmation of £537,000, an additional £237,000 for the year. Members noted that the settlement remained uncertain and one-year in nature. The Deputy Chief Executive and Section 151 officer, explained the Drainage Board funding review by Defra had produced a draft report for consultation, while the special interest group continued lobbying and preparing responses to HM Treasury and ministerial consultations for a more consistent long-term funding arrangement.

The Vice – Chair, Councillor Long questioned why the Council was supporting a fire and rescue facility when fire services were Norfolk County Council responsibility. Councillor Morley, Portfolio Holder for Finance explained the project had been brought to their attention by Councillor de Winton the Fire Champion and the need for training facilities at the South Lynn Fire Station.

The Strategic Advisor to the Chief Executive and Leader explained that the project responded to increased development and service pressure in South Lynn and West Winch and was being delivered with Norfolk County Council. £300,000 of Community Infrastructure Levy funding had been secured and matched by the County, creating a £600,000 project. Site clearance and ground surveys were planned after bird-nesting restrictions. In response to a question from the Vice – Chair, Councillor Long, the Deputy Chief Executive and Section 151 Officer explained the original £30,000 provision was being funded by the Fire Service and was for feasibility.  Following further developments with the scheme and securing CIL project funding, it was expected that the project could be removed from the Council’s capital programme because there was now no requirement for the Council to contribute directly to the project.

The Leader, Councillor Beales highlighted this was the right thing for the Community given the pressure and impact on the Fire Service was to experience following Local Government Reorganisation.

In response to Councillor Ryes, under Standing Order 34a, the Deputy Chief Executive and Section 151 Officer referred Members to the appendix of the report as it provided a breakdown of services areas. She explained that projects move between capital programme tiers through business cases and established governance processes.

Under Standing Order 34a, Councillor Ryves questioned the apparent gap between loans and investments and whether Towns Fund receipts were included. The Deputy Chief Executive and Section 151 Officer explained that borrowing was used to manage cash flow and that most Towns Fund money had been received, with unspent balances included in the overall position. They cautioned that the apparent net deficit should not be treated as the Council’s long-term debt because it also reflected timing, capital receipts, investments and cash-flow movements. The figures were to be recast in future reports to make the Treasury position clearer.

The Panel supported the Cabinet recommendation, with Councillor Nash abstaining from the vote.

RESOLVED: The Panel supported the recommendations to Cabinet. 

Cabinet resolves to:

1) Note the forecast outturn for Revenue and Capital monitoring position as at 30th June 2026 for 2026/2027.

2) Agree to update the Capital Programme as set out in section 3 of the report.