Rushcliffe Borough Council is projecting a £1.3 million revenue underspend for the current financial year alongside a £2 million underspend in its capital programme, according to a new financial monitoring report.
The council’s Quarter 3 finance report for 2025/26, due to be discussed by Cabinet on 10 March, sets out the authority’s financial position up to December and highlights the pressures and savings affecting the budget.
The report indicates a projected net revenue efficiency of £1.304 million for the year. Officers say this reflects several factors including higher investment interest income, an unallocated contingency budget, additional grants and savings within neighbourhood services. One notable saving relates to refuse collection, where housing development has progressed more slowly than expected, meaning planned service expansion has not yet been required.
These savings are partially offset by lower than expected income from planning fees, with demand for planning applications declining and reducing income by around £330,000.
Cabinet is being asked to note the financial position and approve proposals to earmark the projected underspend to support future cost pressures. The council expects some of the funds to help cover the costs associated with local government reorganisation and the introduction of new recycling requirements under the government’s Simpler Recycling policy.
The report also highlights a projected £2.043 million underspend within the council’s capital programme. Much of this relates to projects being rescheduled rather than cancelled, with funding expected to be carried forward into the next financial year.
Examples include £459,000 set aside for land acquisition linked to carbon offsetting, £238,000 for solar photovoltaic works at Rushcliffe Oaks Crematorium, £225,000 for highways and verge enhancement schemes and £237,000 for improvements at Edwalton Golf Course following flood remediation work.
The council’s capital budget for the year has increased from an original £8.344 million to £14.607 million following the carry-forward of projects from the previous financial year and the acceleration of some schemes originally planned for 2026/27. The revised programme also includes new externally funded initiatives supported by the UK Shared Prosperity Fund and the Rural England Prosperity Fund.
Despite the current underspend, the report notes that council finances continue to face pressure from inflation, rising service demand and wider economic conditions. Inflation remained above the Bank of England’s 2% target at 3.4% in December 2025, while employer National Insurance increases are also affecting council budgets and local businesses.
Officers warn these pressures could affect income streams such as planning fees, car parking and other discretionary services if residents and businesses reduce spending. However, higher interest rates have also increased the council’s returns on cash balances and investments, helping to offset some costs.
The report also updates councillors on the council’s Transformation and Efficiency Plan, which aims to deliver savings of £824,000 during 2025/26. By the end of the third quarter £742,000 had already been achieved, with the council now forecasting total savings of £941,000 by year-end.
Some of the additional savings are expected to come from improved performance at Edwalton Golf Course and increased income from Rushcliffe Oaks Crematorium.
The council has also begun incurring costs associated with the government’s proposed local government reorganisation. Around £50,000 has been committed so far to support the preparation of business cases, although grant funding has reduced the net cost to the council to approximately £18,000 to date.
The report states that further expenditure is expected as preparations continue for the creation of a new authority, with funding currently supported through a dedicated Local Government Reorganisation reserve.
In addition to the overall financial position, the report notes a small projected overspend of £1,700 within the council’s Special Expenses budget, which includes services such as parks, town centre management and community facilities in areas including West Bridgford.
Council officers say the overall financial position remains stable but warn that the final outturn could change before the end of the financial year as income levels and service demands fluctuate.
