Cannock Chase District Council finished the 2025/26 financial year with an £800,000 underspend on its budget, according to a report presented to its cabinet on Thursday, August 20. The favourable variance of £0.804m was revealed in the financial outturn report, which also earmarked up to £799,000 for resurfacing the Beecroft Road car park.
Technical Adjustment in Levelling Up Costs
The underspend was largely driven by a "technical adjustment" in costs related to the Levelling Up programme. The report explained that previously capitalised costs were written off as the programme's scope was modified. This adjustment moved capital costs to be funded from revenue, without changing the total amount spent to date.
As a result, a revenue balance of £0.799m became available for the delivery of the regeneration programme, currently held in a regeneration reserve. The portfolio outturn for 2025/26 showed a favourable variance of £0.804m, with investment income increasing by £0.154m compared to the revised budget.
Income and Expenditure Details
Interest rates remained higher than anticipated, generating an additional gross investment income of £0.128m above budget. The budget also assumed interest on balances held for repayable grants, but due to lower-than-expected spend during 2025/26, the actual cost was £0.023m lower than anticipated.
However, income from the Business Rates Retention Scheme was £61,000 lower than expected. The authority also saw reductions in parking penalty charges (£19,000), general parking income (£7,000), and licensing income (£5,000). On the positive side, public buildings generated £75,000 in additional income, and election room hire from the Civic Ballroom brought in £20,000 more than budgeted.
Lower telephone costs, due to the conversion of circuits to Wi-Fi, resulted in a £36,000 reduction in CCTV spending. Overall income levels were £1.136m higher than the revised budget, with Development Control, Building Control, Public buildings, Cemeteries, Grounds maintenance, and Local Taxation all showing additional income.
Impact on Future Budgets
The outturn shows a contribution to working balances on the General Fund of £0.4m, leaving a resultant balance of £2.878m as of March 31, 2026. Since the council's policy is to retain a working balance of £1m, the £1.878m above this balance will be available to support future budgets.
The £0.799m earmarked for the Beecroft Road car park resurfacing is part of the regeneration reserve, reflecting the council's commitment to infrastructure improvements. The report concluded that the favourable variance provides a solid financial foundation for the coming year.
