Agenda item

The Committee had before it a report by the Executive Director of Corporate Services which provided the financial position of the Council as at Quarter 1 (30 June 2025) and the full year forecast position for the financial year 2025/26, including:-

·       General Fund and Housing Revenue Account (HRA) and capital accounts; and associated Balance Sheet; and

·       Common Good revenue account and Balance Sheet.

The report recommended:-

that the Committee –

(a)      note the cash position that has been achieved for the General Fund and HRA to the end of Quarter 1 as detailed in Appendix 1;

(b)      note the Common Good financial performance to the end of Quarter 1 as detailed in Appendix 3;

(c)      note that the General Fund full year forecast position remains on track to achieve a full year outturn of ‘on budget’ although there are a range of financial risks that exist for the financial year. Continuing action and controls, as outlined in Appendix 2 will remain in place for the remainder of the financial year;

(d)      note that the Council maintains financial resilience with the resources available on the Council Balance Sheet, the General Fund Reserves in particular. As at 31 March 2025 the uncommitted value of those reserves was £12m, the minimum that the Council Reserves Statement recommends and as approved by the Council;

(e)      approve inclusion of the Den Burn Restoration project in the General Fund Capital Programme as detailed in Appendix 5, with funding being provided from SEPA, additional Scottish Government Capital Grant (Climate Emergency) and Bus Lane Enforcement money received, and instructs the Chief Officer – Capital to ensure the project is delivered;

(f)       note that the HRA full year forecast position, as detailed in Appendix 2, is ‘on budget’, but continues to face challenging cost pressures as outlined in Appendix 2 and the HRA Budget Report 2025/26; and

(g)      note that the forecast for General Fund Capital budget has been updated to include approved in-year virements, carry forward commitments and a reprofiling exercise. General Fund and Housing Capital expenditure is currently forecast to be as per the revised profiles for 2025/26;

The Convener, seconded by Councillor Greig, moved:-

that the Committee approve the recommendations contained within the report.

Councillor Malik, seconded by Councillor Watson, moved as an amendment:-

that the Committee –

(1)    note the report;

(2)    agree that the UK Government provided the Scottish Government with a record £50 billion financial settlement for 2025/26;

(3)    agree the report highlights the risks associated with the IJB, meaning if the IJB has an overspend position, then the deficit will have to be met by the IJB partners. This means that the Council would have to contribute from the General Fund to bring the IJB back to a balanced position; 

(4)    agree the £4m of contingencies could be at risk of being insufficient given the overspend risks confirmed within the report;

(5)    agree with the Labour Group’s view that the Energy from Waste Plant (EfW) fiasco will impact on revenue, given council is now using landfill, transporting refuse to Peterhead and beyond, whilst maintaining the EfW; 

(6)    note the decision made on the 31st July 2025 in relation to the Energy from Waste Plant; 

(7)    agree the HRA remains under significant pressure from repair and maintenance costs and also from lost income, noting the position adopted by Aberdeen Labour at the budget last December;

(8)    agree in respect of the Common Good Fund, the Chief Officer - Finance must confirm to the Committee, the relationship between Aberdeen Arts Centre, the Council and Castlegate Arts Ltd  and  confirm if the £8,000 paid in rent from the Common Good Fund was an internal transfer for the rent agreed between the Council and Castlegate Arts Ltd or for something different, given the Chief Officer -  Finance was instructed with no diligence carried out to pay out £8,000 for Aberdeen Arts Centre not to Castlegate Arts Ltd as per appendix 6 of the Administrations 2025/26 budget; and

(9)    agree inclusion of the Den Burn Restoration project in the General Fund Capital Programme as detailed in Appendix 5, with funding being provided from SEPA, additional Scottish Government Capital Grant (Climate Emergency) and Bus Lane Enforcement money received. 

On a division, there voted:- for the motion (5) – the Convener and Councillors Allard, Cooke, Greig and Radley; for the amendment (2) – Councillors Malik and Watson; declined to vote (2) – Councillors Brooks and Farquhar.

The Committee resolved:-

(i)       to adopt the motion; and

(ii)      that in relation to the Housing Revenue Account, the Chief Officer – Finance would circulate details relating to the lost income from voids in Quarter 1.