To consider the 2024/25 Revenue & Capital Outturn Report (DFP/08/2526).

Director of Finance and Procurement, Mike Rea introduced the report noting that Members had received quarterly updates on the Authority’s financial performance, with the last report covering up to December 2024.

Members were advised that the report provided the Authority’s year-end financial position update for 2024-25, including revenue, capital, and reserve budget adjustments.

It was noted that movement in Quarter 4 was summarised in paragraph 10 on page 338 and two drawdowns from reserves were made: one for retrospective holiday payments of £150,000, relating to the 2023/24 period, which exhausted the reserve. The second drawdown, from the Energy Reserve, amounted to £172,000 and was used in the capital programme to fund the planned LED lighting upgrade at Service Headquarters and the Joint Control Centre.

With regards to inflation a further £157,000 was drawn from the inflation provision to meet increased non-operational staff costs, including pay, pensions, administrative expenses, and ICT provider charges. Additionally, Members were advised that salary costs capitalised in relation to smoke alarm installation reduced the salary budget and increased the capital budget by £84,000. It was highlighted that other adjustments within the quarter were largely self-balancing.

Members attention was drawn to the table on page 339, which confirmed that the Authority’s final budget aligned with the original approved figure of £74.191 million. The revenue outturn position, summarised at the top of page 340, displayed a year-end underspend of £3.936 million, including £333,000 of reserve requested by budget managers for projects commenced in 2024/25 but not completed until 2025/26. It was highlighted that this left an available 2024/25 underspend of £3.6 million.

Members noted that the Authority’s strategy remained focused on using in-year savings to strengthen reserves, which could serve to mitigate future financial risks, support infrastructure investment, or manage cost pressures. It was proposed that the £3.6 million underspend be allocated: £200,000 to increase the General Revenue Reserve, £2 million to create a new Carbon Net Zero Reserve, and £1.4 million to increase the Capital Investment Reserve. Members were assured that after accounting for the reserve requests, the overall revenue outturn was in line with budget.

Attention was drawn to paragraphs 14 to 24 which highlighted the capital position for 2024/25. Mike Rea noted that during Quarter 4, the capital programme budget increased by £3.456 million.

Members noted that the capital outturn, which was summarised in the table at the top of page 344 actual capital spend for the year was £14.294 million below budget. Of this, it was discussed that £13.899 million had been rephased into future years, with £395,000 identified as a saving on various 2024/25 schemes.

Mike Rea drew Members attention to paragraphs 21 to 29 which outlined the available reserves and movements in Quarter 4, along with proposed year-end adjustments. Members were advised that before reserve adjustments, reserves decreased by £322,000 in the final quarter to £9.833 million. Mike Rea highlighted that £333,000 of year-end reserves had been requested to fund spend now expected in 2025/26 or beyond.

Mike Rea advised that paragraph 25 confirmed the proposed use of the £3.6 million revenue underspend, and that after these adjustments, the committed reserves had increased by £1.395 million in the year, from £12.174 million to £13.569 million.

Councillor Byrom noted that underspending was common because the Authority received no capital funding directly and must save part of its council tax and grants to fund capital projects and future developments. He noted that some funds were set aside for pay rises and major projects like the new Training and Development Academy, which helped absorb unexpected costs. Members were advised that the current report was an early financial review, with more detailed budget adjustments expected around December as the government settlement becomes clearer. Meanwhile, Councillor Byrom expressed his support for lobbying for a multi-year funding settlement to provide greater financial flexibility.

Councillor Roberts advised that while underspending could be helpful in future years, it was good to see that less than a quarter came from staffing costs and more than a quarter from treasury management, indicating smart investments and financial stability. He also welcomed the new Carbon Net Zero Reserve, understanding it would fund photovoltaic panels at stations, while generating additional income and reducing carbon emissions.

Councillor Byrom reinforced the value of investing in energy efficiency, noting that recent LED lighting upgrades had more than halved electricity costs while also reducing maintenance expenses. He emphasised that this success should guide further investments in areas like photovoltaic panels and insulation using reduced operating costs to fund future capital improvements.

Councillor Bell expressed pride and gratitude for the Authority’s continued investment in EDI, staff training, community support, and the push toward Net Zero. She noted the importance of this work, especially in a challenging political climate, and praised the service for staying focused on doing what is right for the community.

Mike Rea provided further detail on the £2 million Carbon Net Zero Reserve. Members were advised that Initial feasibility work was underway with the Northwest Net Zero Hub, a regional programme supporting public sector energy projects. It was highlighted that of the total investment, £1.7 million would go toward installing solar panels and £300,000 toward decarbonisation measures such as removing old gas boilers. Mike Rea noted that any remaining funds would support the installation of electric vehicle charging points, he noted the investment was expected to pay back within six to seven years.

However, currently, solar panels were already in place at the Training and Development Academy, St Helens, Old Swan, and Service Headquarters with plans to expand coverage at SHQ. It was highlighted to Members that electric charging points would also be rolled out across all stations in line with the transition to hybrid vehicles in the future.

RESOLVED that;

a)         that actual revenue spend compared to the approved budget delivered a net underspend of £3.936m before the creation of year-end reserves, as outlined in Appendix A1, be noted.

b)         this underspend be used to;

i.          create the required year-end reserves of £0.333m to fund projects that have slipped from 2024/25 into 2025/26, be approved and

ii.         increase the General Revenue Reserve by £0.200m, be approved and

iii.        the creation of a new reserve for carbon net zero of £2.000m to contribute towards the costs associated with investing in carbon zero renewables and initiatives, to reduce carbon emissions and reduce energy costs, be approved and

iv.        the increase in capital investment reserve by £1.403m, in order to offset capital cost inflationary pressures and reduce planned borrowing to free up revenue budget associated with debt servicing costs, be approved

c)         the re-phasing of planned capital spend from 2024/25 into future years of £13.899m, (£11.900m relates to National Resilience Asset Refresh), as outlined in Appendix B, be approved; and 

d)         committed reserves of £13.569m and a general reserve of £3.900m as outlined in Appendix A4, be approved.

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Date of next meeting Thursday, 2^nd October 2025