Agenda item

To receive and consider the following reports as an overview of the Council’s financial position:

- Capital Programme Monitoring 2025/26 – 2027/28 - Quarter 2 Update to 30th September 2025

- Revenue Budget Monitoring 2025/26 – Quarter 2 to end of September 2025

- Prudential Indicators Monitoring and Treasury

Management Strategy Update – Quarter 2 2025/26

Recommended                    -  That the report be noted.

The Cabinet Portfolio Holder for Finance, Councillor Vanessa Alexander and the Executive Director of Resources, Martin Dyson, provided an overview of the Council’s financial position.  The Committee were provided with details of the following reports:

a)    Capital Programme Monitoring 2025/26 – 2027/28 – Quarter 2 Update to 30^th September 2025.

b)    Revenue Budget Monitoring 2025/26 – Quarter 2 to end of September 2025.

c)    Prudential Indicators Monitoring and Treasury Management Strategy Update – Quarter 2 2025/26.

The Capital Programme Monitoring report provided an update on the delivery and financial performance of the capital programme as at Quarter 2 of 2025/26, highlighting progress against budget, identifying any variances, risks or slippage and forecasting the expected outturn.  It supported effective decision-making, ensured transparency and accountability and informed any necessary adjustments to project timelines, funding allocations, or future financial planning.   Members were requested to note the financial position of the Capital Budget at Q2 of the 2025/26 financial year (as shown in Section 4 of the report).  The Committee were also requested to approve the in-year addition to the Capital Programme of £0.681 of capital projects (as shown in Appendix 1 of the report).

The Revenue Budget Monitoring report updated the Committee on the Council’s financial performance up to the end of September 2025 for the 2025/26 financial year and outlined the projected impact on the Medium-Term Financial Strategy covering the period 2025-26 to 2027/28.  Members were asked to note the financial position and financial pressures and risks facing the Council as at the end of September 2025 (as shown in Sections 3 and Section 5 of the report).

The purpose of the final report, the Prudential Indicators Monitoring and Treasury Management Strategy update, was to provide Members with details about the Council’s treasury management activities for the current financial year.  It outlined the performance of investments and borrowing, assesses compliance with the approved Treasury Management Strategy and highlighted emerging risks or opportunities that may impact the Council’s financial position.  The report supported the effective budget monitoring and ensured transparency and accountability in the management of public funds.  Members of the Committee were requested to note the treasury management activities undertaken during the period and the performance against the approved strategy.

The Executive Director of Resources reported on the difficulties of managing budget constraints in relation to recruitment and Housing Benefit payments but explained how the Council intended to manage this. 

He reported that the Council’s capital programme was £56 million with projects including Levelling Up Funding, Leisure Centres and Huncoat Garden Village.  Building and ICT structures were also being financed.  He referred to the risks of delivering a capital programme of this size.  He also indicated that asset sales had slowed and that they were trying to expedite some of these sales. 

In respect of the Treasury Management report, he explained that a lot of money had been invested and referred to the control of the Council’s finances.  The forecast outturn for 2025/26 was £1,287k.  He informed the Committee that the Council was in a good financial position.

A further update on the Council’s financial position would be given at the Cabinet meeting held in January 2026. 

Advanced Questions and Responses

Pride of Place Impact Fund – People seem to be disillusioned about the lack of grant funding or financial assistance for their own towns.  There were complaints about a lack of traditional shops, lack of facilities for children, most of the grant money being focused on Accrington town centre and a need for signposting to volunteer opportunities, e.g. with Prospects.

Is it intended to give any money to Rishton from the “Pride of Place Impact Fund”?

Response –two Government schemes in place: 

a)    Plan for Neighbourhoods - £20m over 10 years to regenerate communities, strengthen social infrastructure, and empower local decision-making.  Reference was made to how the scheme operated, who was responsible for decision making, the allocation of funding to initiatives and consultation with the community.

b)    Pride of Place Impact Fund - A £150m Government fund pot available for all Councils for immediate improvements anywhere in the borough.  £1.5 m for each Council to be spent within this and the next financial year.  This could be used for match funding but would also be used to drive initiatives in areas other than Accrington town centre.

Councillor Dad pointed out that the funding allocated under the Pride of Place Impact Fund was for initiatives right across the borough. 

Members queried and commented on the following issues:

·         Requested assurance that there would be a distinction between house building and community retention e.g. elderly people wanted to retire in areas close to their families.  Housing provision was required for elderly people.

·         Members were encouraged to hear that funding was being provided for areas outside of Accrington town centre and alluded to the need to keep the borough’s townships from falling into disrepair.

·         A request for information in relation to works done to Oswaldtwistle Civic Theatre and in Rhyddings Park.

·         A request for an explanation for the process of the sale of the Council’s assets.

The Executive Director of Resources reported that the Council had no plans to sell Oswaldtwistle Civic Theatre and that works had been planned and budgeted for the building.  He explained that specific legislation was required for the sale of public assets and indicated that he would provide a full response to Councillor Addison.

Resolved                               -   That the reports and the Council’s financial position be noted.