The council sets aside specific amounts as reserves for future policy purposes or to cover risks and contingencies. Reserves are created by appropriating amounts out of the General Fund Balance in the Movement in Reserves Statement. When expenditure to be financed from a reserve is incurred, it is charged to the appropriate service in that year to score against the Surplus or Deficit on the Provision of Services in the Comprehensive Income and Expenditure Statement. The reserve is then appropriated back into the General Fund Balance in the Movement in Reserves Statement so that there is no net charge against council tax for the expenditure.
| | 2024/25 | | 2025/26 | |
| Transfers to/from Earmarked Reserves | Balance at 31 March 2024 £000's | Transfers In £000's | Transfers Between £000's | Transfers Out £000's | Balance at 31 March 2025 £000's | Transfers In £000's | Transfers Between £000's | Transfers Out £000's | Balance at 31 March 2026 £000's |
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| Specific Reserves | | | | | | | | | |
|---|
| Corporate - Insurance Reserve | 5,721 | - | - | (203) | 5,518 | - | - | (1,087) | 4,431 |
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| Corporate - Covid-19 Grant | 622 | - | (267) | - | 355 | - | - | - | 355 |
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| Corporate - Collection Fund Equalisation Fund | 8,359 | 1,336 | - | (44) | 9,651 | - | - | (647) | 9,004 |
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| Corporate - Other Reserves | 16,766 | 10,386 | 427 | (919) | 26,660 | 300 | - | (700) | 26,260 |
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| Corporate - Economic Volatility Reserve | 20,139 | 3,500 | - | - | 23,639 | 3,500 | - | - | 27,139 |
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| Service - Dedicated Schools Grant | - | 13,615 | 3,787 | (17,402) | - | - | - | - | - |
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| Service - Others Reserves | 24,568 | 5,501 | (160) | (2,530) | 27,379 | 15,720 | - | (3,791) | 39,308 |
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| Parking Reserve Account | 4,436 | 870 | - | (1,958) | 3,348 | 4,370 | - | (1,532) | 6,186 |
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| PFI Reserves | 18,269 | 29 | - | (2,280) | 16,018 | 757 | - | (2,748) | 14,027 |
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| 98,880 | 35,237 | 3,787 | (25,336) | 112,568 | 24,647 | - | (10,505) | 126,710 |
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| School Balances (ring-fenced) | 15,663 | 6,916 | - | (7,553) | 15,026 | - | - | (3,859) | 11,167 |
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| Total General Fund | 114,543 | 42,153 | 3,787 | (32,889) | 127,594 | 24,647 | - | (14,364) | 137,877 |
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| HRA Reserves | | | | | | | | | |
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| Major Repairs Reserve | - | 14,411 | - | (14,411) | - | 14,316 | - | (14,316) | - |
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| Estate Regeneration Delivery Service | 8,632 | 521 | - | (143) | 9,010 | 3,373 | - | - | 12,383 |
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| Total HRA | 8,632 | 14,932 | - | (14,554) | 9,010 | 17,689 | - | (14,316) | 12,383 |
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The Insurance reserve is held to cover future insurance claims.
The Covid-19 Grant reserve holds the general fund grants that have been received and are carried forward due to permitted use to fund future Covid pressures.
The Collection Fund Equalisation Fund is a technical reserve which is used to allow for distribution of collection fund balances relating to timing differences.
Corporate Other reserves is a group of reserves held corporately, some are held to cover against future costs the council will incur, such as Election Reserves, whilst others are held in order to provide funds to drive corporate strategy and efficiencies.
The Economic Volatility reserve is held to manage volatility in collection fund income and manage risks arising from the wider economic context such as the impact of inflation and the cost of living pressures.
The Dedicated Schools Grant (DSG) reserve is held to carry forward any unspent DSG to be used in future years. The operation of the DSG continues to allow the council to carry forward any DSG underspends to a ring-fenced reserve, and any deficits on DSG would be treated as an unusable reserve. In 2025/26 the council has recognised an £18.121m deficit which has been moved to an unusable reserve and is reported in Note 18.
Service Other reserves is a group of reserves held by services to provide financial resources for service-based projects such as recycling initiatives or school transport infrastructure.