Decision Details

To transfer £6.9m into a ‘This Land Income Phasing’ risk reserve in 2024-25.

 This follows a delegation agreed at Strategy, Resources and Performance Committee on 11 March 2025 – recommendation e – to enable accounting entries, including reserve transfers, to be made regarding the This Land income position for 2024-25.

b)   Following submission and agreement to the company’s business plan, the council accrued for income from the company for interest income due in 2024-25.  To mitigate the risk of that accrual, as the cash income is expected to be deferred for several years, an offsetting transfer to a specific earmarked reserve has been made.

The other option considered was not making a transfer to earmarked reserve. This would have resulted in a higher than expected general reserve due to the impact it would have had on the 2024-25 outturn. It is preferable to have a specific reserve for this risk.