Agenda item

The Leader of the Council presented the report. The report was the first budget monitoring report for the current financial year covering income expenditure between April and July 2025.

The report covered general fund, HRA, revenue and capital expenditure.

The forecast position on the general fund was currently at an underspend due to a number of different variances as outlined in table two of the report. This was a combination of forecast changes to income and expenditure and would continue to be monitored throughout the year.

There was an emerging concern regarding the expenditure position of the HRA. Work was ongoing to ensure the levels of expenditure for repairs and maintenance were regularly reviewed. The expenditure position was partly due to the focus on clearing maintenance backlog alongside new requirements as a social landlord.

In terms of capital expenditure, other variances included HRA new build, which was below budget due to delays in programme and some abortive schemes. Work continues to identify potential sites for development or acquiring new build properties where there was an identified need or the properties meet the housing demand.

It was noted the report outlined £1 million variant overspend budget for repairs. It was queried whether the Council would borrow money from another HRA fund for further repairs.

The Leader of the Council clarified there were significant reserves in the HRA budget. It was highlighted that since 2023, condition surveys had outlined significant repairs which required attention alongside the backlog of voids.

The Director of Housing and Projects outlined the Council’s need to manage the number of repairs in order to reduce the budget for repairs. At present, there were 3,500 repairs that require completion in properties and around 200 new repairs were raised each week. The numbers had reduced by 600 since March 2025.

Capital funding was monitored on a monthly basis and from a decent homes perspective, the Council were achieving 99.76%. Only 14 properties were currently failing to meet decent homes standards. There were approximately 160 tenants who had refused works, which would increase the cost of repairs when the property becomes a void.

A question was raised on what the Council could do to ensure that money is spent within South Kesteven District Council and would not be spent on the new authority, following LGR.

The Leader of the Council confirmed budget preparation had started for 2026-27. The Council would be taking a prudent approach to spending public money before the new authority was established. We would hope that the Council’s money would still benefit the residents within the area but this was a  common concern of Council’s around the country about the amalgamation of budgets into a new authority.

It was queried whether the Council were reviewing finances of other Council’s which SKDC could be amalgamated with. The Council was working on baseline data across the authority to develop a model that would support its LGR submission. The data being captured was balance sheets, contract spend, staffing groupings, investment and debt levels.

A query was raised on why the Council could not evict tenants who refused essential repairs to comply with legal requirements.

The Director of Housing and Projects confirmed the Council could only take legal enforcement for gas compliance. The majority of refusals were based around replacements of kitchens or bathrooms.

It was noted the HRA capital had an £8 million underspend regarding the new build programme. Concern was raised on whether individuals on the housing register would endure a longer wait for a house. The reasons for projects being delayed were queried and whether alternative options had been considered.

The Director of Housing and Projects clarified some delays on start dates due to drainage issues. Government had recently lifted a numerical restriction on the amount of properties the Council could buy ‘off plan’. It was further highlighted that discussions with potential developers are time consuming.

The Leader of the Council noted that new builds can cause resistance in terms of locations being close to existing properties.

The Committee:

1. Reviewed and noted the forecast 2025/26 outturn position for the General Fund, HRA Revenue and Capital budgets as at the end of July 2025.