Note 18 Unusable Reserves

Unusable Reserves2024/25 £000's2025/26 £000's
Revaluation Reserve829,199848,500
Capital Adjustment Account883,333943,454
Deferred Capital Receipts Reserve4,5195,314
Collection Fund Adjustment Account2,080(1,166)
Financial Instruments Adjustment Account(1,317)(1,280)
Accumulated Absences Account(8,631)(8,784)
Pensions Reserve(50,881)-
Dedicated Schools Grant Adjustment Account(5,641)(18,121)
Total Unusable Reserves1,652,6611,767,917

REVALUATION RESERVE (NOTE 18A)

The Revaluation Reserve contains the gains made by the council arising from increases in the value of its property, plant and equipment. The balance is reduced when assets with accumulated gains are:

  • Revalued downwards or impaired and the gains are lost
  • Used in the provision of services and the gains are consumed through depreciation or
  • Disposed of and the gains are realised.

The reserve contains only revaluation gains accumulated since 1 April 2007, the date that the reserve was created. Accumulated gains arising before that date are consolidated into the balance on the Capital Adjustment Account.

Revaluation Reserve2024/25 £000's2025/26 £000's
Balance at 1 April847,441829,199
Upward revaluation of assets72,19368,710
Downward revaluation of assets and impairment losses not charged to the Surplus/Deficit on the Provision of Services(71,692)(34,098)
Surplus or (deficit) on revaluation of non-current assets not posted to the Surplus or Deficit on the Provision of Services50134,612
Difference between fair value depreciation and historical cost depreciation(13,188)(13,192)
Accumulated gains on assets sold or scrapped(5,555)(2,119)
Amounts written off to the Capital Adjustment Account(18,743)(15,311)
Balance at 31 March829,199848,500

CAPITAL ADJUSTMENT ACCOUNT (NOTE 18B)

The Capital Adjustment Account absorbs the timing differences arising from the different arrangements for accounting for the consumption of non-current assets and for financing the acquisition, construction or enhancement of those assets under statutory provisions. The account is debited with the cost of acquisition, construction or subsequent costs as depreciation, impairment losses and amortisations are charged to the Comprehensive Income and Expenditure Statement (with reconciling postings from the Revaluation Reserve to convert fair value figures to a historical cost basis). The account is credited with