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Report on the Oakham Town Council Finance Committee Meeting
For the first time in many years, Oakham Town Council convened a dedicated Finance Committee to consider the Council's financial position, budget, banking arrangements, investments, payments and financial controls.
The meeting represented an important step towards strengthening the Council's financial governance and oversight. A number of matters that have either not previously been subject to regular Finance Committee scrutiny, or which required review and clarification, were considered. The meeting also resulted in a series of recommendations that will now need to be considered and, where appropriate, approved by Full Council.
The Finance Committee considered the Council's financial position to date, reviewed the revised 2026/27 budget, considered changes to the Council's banking arrangements, examined a proposed investment strategy, approved a schedule of invoices and reviewed the Council's bank reconciliations and statements.
The work presented to the Committee was prepared with the assistance of Samantha Haywood, the Council's Locum Clerk and Responsible Financial Officer (RFO).
The Finance Committee comprises of
Cllr Callaghan – elected Chairman of the Finance Committee;
Cllr Martin Brookes – elected Deputy Chairman;
Cllr Romney;
Cllr Wadsworth – absent from the meeting due to work commitments;#
Cllr Padmore; and
Cllr Harris.
Samantha Haywood, Locum Clerk and Responsible Financial Officer, was also present and provided financial and governance advice to the Committee.
The establishment and operation of a Finance Committee provides a more focused mechanism for councillors to scrutinise the Council's finances rather than leaving financial matters solely to Full Council meetings.
The Committee noted the financial information presented for the year to date, including:
the balance sheet;
trial balance;
income and expenditure information;
bank balances; and
supporting bank documentation.
The revised budget presented to the Committee shows a proposed 2026/27 budget of £740,607 against total available financing of approximately £740,750, including the VAT reclaim due. This leaves a projected general reserve balance of only approximately £142 on the figures contained in the revised budget.
This is significant because it demonstrates why the Council needed to review its budget carefully. The revised figures identify a number of expenditure commitments that were either absent from the original budget, materially understated, or required reclassification into more appropriate cost centres.
The work undertaken by the Locum Clerk/RFO therefore provides the Committee with a substantially clearer picture of the Council's expected expenditure for 2026/27.
The Committee considered the revised 2026/27 budget and agreed that it should be recommended to Full Council for approval.
The revised budget makes a number of important changes to the budget originally agreed for 2026/27. These changes are particularly important because they bring a number of previously unbudgeted or insufficiently budgeted costs into the Council's financial planning.
One of the most significant changes concerns staffing.
The original budget contained £105,600 for salaries, but the revised budget reduces the standalone salaries provision to £92,000 and creates separate budget headings for costs that had not previously been properly provided for. These include:
Locum Clerk services – £39,000;
Temporary staff – £6,000;
HR miscellaneous costs – £25,000;
Payroll services – £1,300; and
HR services – £3,500.
The budget notes that there had been no existing provision for the Locum Clerk and that the revised figure includes expenditure already incurred and an estimate of future costs.
This is an important improvement in budget transparency because employment-related costs are being identified separately rather than being obscured within a single salary figure.
The training budget increases from £1,800 to £4,000, reflecting the expected training requirements associated with new staff and specific health and safety training.
The accountancy and audit provision increases from £3,000 to £5,077. The revised budget identifies costs associated with Rialtas, including the purchase of sales and purchase ledgers and associated annual costs.
The legal expenses budget is reduced from £10,000 to £5,000, while a separate £500 provision for SAR/FOI costs has been introduced. The budget notes that separating this expenditure would make the cost of such requests more visible.
A separate £7,350 forensic audit provision has also been introduced, based on the quoted cost of the work.
The revised budget separates IT, website and telephone expenditure more clearly.
The IT budget is revised to £4,000, while a new website provision of £1,000 and telephone provision of £2,170 are included. The budget specifically identifies the need for the Clerk to have a Council mobile phone rather than relying on a personal telephone.
The street furniture budget is reduced from £5,000 to £2,500, with the budget noting that Community Infrastructure Levy (CIL) funds should be considered for new benches.
The revised budget makes a particularly important correction concerning CIL.
The budget previously showed a CIL balance of £184,395, whereas Rutland County Council has confirmed that this figure was not correct. The revised budget records £250,626 relating to CIL 2024/25 and a further £85,386 for CIL 2025/26, producing a total CIL-related figure of £341,512 in the relevant cost centre before other adjustments.
The revised budget also identifies a number of projects and expenditures that may appropriately be funded from CIL, including play equipment, community facilities and other eligible capital expenditure.
This distinction is important because CIL is not simply ordinary unrestricted revenue and must be used in accordance with the applicable rules.
The members' allowances provision is reduced from £2,000 to £1,500, with a new £300 Chairman's allowance included.
The revised budget reduces maintenance expenditure at Cutts Close from £10,500 to £4,000, partly because some identified works are expected to be funded from UKSPF. Electricity and street-lighting provisions are separately identified.
The events budget undergoes substantial revision.
The original £3,500 Christmas event budget is removed from the revenue budget, with the report suggesting that eligible CIL funding should be investigated. A £4,514 overspend from 2025/26 is separately provided for following the Council's decision to fund that overspend from General Reserves.
The revised budget also introduces £2,000 for communications, intended to improve communication with residents through councillor surgeries, resident meetings, advertising, banners and surveys.
The revised open spaces budget is £61,728.
Tree expenditure is increased from £9,000 to £15,000, reflecting the difficulty of accurately forecasting tree work because expenditure can vary depending on weather, disease and other circumstances.
The revised budget recognises that £22,984 has already been spent on new play equipment and proposes that this should be funded from CIL rather than the ordinary revenue budget.
The revised provision for play equipment repairs falls from £10,000 to £1,000, while cleaning, inspections and other play-area costs are separately identified.
Expected Pod Point income increases from £3,000 to £5,000, reflecting £2,079 already received.
Expected rental income from Princess Avenue is reduced from £10,800 to £5,000 because the tenant has moved out and outstanding rent is being pursued.
A revised provision of £6,600 for electricity is included, together with £15,500 for cleaning/opening and closing costs and £1,000 for maintenance.
The revised budget proposes a clearer cost-centre structure for the Council office so that its full cost can be identified.
Office rent is reduced from £17,850 to £9,500, while separate provisions are made for waste, electricity, water, maintenance, cleaning materials and office furniture/equipment.
The projects budget is revised from £69,800 to £50,000.
The most significant project provision is £34,000 for Victoria Hall, covering matters including solicitors' fees, consultation and other costs associated with the project.
Other projects, including community street lighting, CCTV and the Oakham Hopper, have been removed from the ordinary project budget, with the report indicating that CIL or grant funding should be considered where appropriate.
Perhaps one of the clearest indications of the budget review is the substantial reduction in the use of earmarked reserve provisions.
The revised EMR total falls from £163,812 to £12,574. Several amounts previously identified as earmarked reserves are now proposed to be met from CIL or from other existing budget provisions.
The £75,673 operational reserve provision for three months' running costs has been reduced to nil, with the explanation that the precept has already been received and essential three-month costs are either already paid or provided for elsewhere in the revised budget.
The £5,962 EMR for regalia has also been reduced to zero in order to reduce the projected deficit, as the expenditure is not considered urgent.
Cllr Martin Brookes said that he felt vindicated by the findings of the Locum Clerk/RFO.
Cllr Brookes expressed the view that the Council's budgets over a number of previous years had not provided a reliable or realistic reflection of the Council's actual financial position. He described previous budgeting as inadequate and said that expenditure and financial commitments had not always been properly identified within the budget.
These comments should be understood as Cllr Brookes' assessment and opinion, rather than as an independently established finding contained in the financial documents.
Cllr Brookes also expressed his satisfaction that Samantha Haywood, as Locum Clerk and RFO, was assisting the Council in improving its financial administration and complying with its governance requirements.
His comments reflect the wider significance of the Finance Committee's work, the revised budget is not simply an exercise in moving figures between headings, but is intended to establish a more transparent and realistic financial framework for the remainder of 2026/27.
The Committee considered a proposal to move the Council's principal current-account banking from Lloyds Bank to Unity Trust Bank, with the recommendation to be referred to Full Council.
The investment and banking report identifies that the Council's funds are currently spread across five accounts with four institutions:
Lloyds Bank current account;
HSBC current account;
HSBC deposit account;
Unity Trust Bank deposit account; and
The Cambridge Building Society Council Saver/deposit account.
At 31 July 2026, the banking report records approximately:
| Account | Balance |
|---|---|
| Lloyds current account | £284,694 |
| HSBC current account | £64,353 |
| HSBC deposit account | £315,514 |
| Unity Trust deposit account | £201 |
| Cambridge Building Society | £60,000 |
| Total | £724,762 |
The budget document records slightly different figures for some accounts and a total cash figure of £724,458.58, plus approximately £16,291 VAT reclaim due.
The investment report identifies a particular concern with the amount held in current accounts. Approximately £349,047, or around 48% of the Council's cash balance, was held in the two current accounts. The report considers this excessive for transactional accounts because current accounts are primarily intended for day-to-day cash-flow requirements.
The report also notes that Unity Trust's current account does not pay credit interest, reinforcing the principle that only the amount required for operational purposes should remain in the current account.
A particularly important issue identified was the substantial balance held in the HSBC deposit account, together with the fact that the Council has not been able to access the HSBC account.
The investment report records approximately £315,514 in the HSBC deposit account, in addition to £64,353 in the HSBC current account.
The report highlights that significant funds have historically been held in accounts that are not generating an appropriate return.
As an illustration, the investment report calculates that if £349,047 currently held in non-interest-bearing current accounts were earning approximately 3.8%, it could generate around £13,264 gross interest per year. The report describes this as a considerable amount of potential interest income that the Council has lost over previous years.
The proposed strategy is therefore not simply to change banks. It is to change the way the Council manages its cash.
The investment report recommends that Unity Trust Bank become the Council's principal and sole day-to-day current-account provider.
Subject to Full Council approval, the proposal is to:
- establish Unity Trust Bank as the operational current account;
- close the Lloyds current account once all outstanding transactions have cleared;
- close the HSBC current account once fully reconciled;
- transfer the HSBC deposit funds into approved investment/deposit arrangements;
- consider transferring the £60,000 held with Cambridge Building Society to Hampshire Trust Bank;
- retain the existing Unity Trust deposit account as an instant-access/emergency reserve account; and
- consider a diversified portfolio of interest-bearing deposits together with the CCLA Public Sector Deposit Fund.
The report also recommends clear separation between the officer preparing payments and councillors authorising them.
The Clerk/RFO would administer and prepare payments, while two members of the Finance Committee would independently authorise each electronic payment.
This creates a clear separation between preparation, submission, independent authorisation and payment.
The Committee also considered the Council's proposed Investment Strategy and agreed that it should be recommended to Full Council.
The strategy is based on three fundamental principles:
- Security – protecting public money and minimising the risk of loss;
- Liquidity – ensuring money is available when required; and
- Yield – obtaining a reasonable return on surplus funds once security and liquidity requirements have been satisfied.
Importantly, the strategy does not recommend speculative investments. It specifically rules out investments such as equities, cryptocurrencies and long-term property investments where the potential for capital loss would be inconsistent with the Council's responsibilities as a public body.
The proposed structure is:
Unity Trust current account – day-to-day operational expenditure;
Unity Trust instant-access account – emergency and immediately required funds;
short-term notice/fixed-term deposits – funds not required immediately; and
CCLA Public Sector Deposit Fund – potentially for a proportion of longer-term surplus cash.
The report proposes that the current account should normally contain approximately three months' trading requirements plus any known significant expenditure due shortly.
The investment report identifies several potential interest-bearing options.
For example, the report records an indicative 90-day Hampshire Trust Bank rate of approximately 4.01% AER at the time the report was prepared. It recommends that the Council consider transferring the £60,000 held with Cambridge Building Society to HTB because of the higher available rate.
The existing Cambridge Building Society Council Saver is recorded at approximately 1.55% AER, materially below some of the other options considered.
The CCLA Public Sector Deposit Fund had a published yield of approximately 3.82%–3.92% AEY, depending on the class, as at 17 August 2026. However, the report correctly distinguishes this from a bank deposit: the CCLA fund is an investment fund and is not covered by FSCS deposit protection, and its value is not guaranteed.
The rates in the report are indicative and can change, so any investment decision would need to confirm the rate available at the time the funds are actually placed.
The investment report provides an illustrative allocation of the Council's approximately £724,762 cash balance:
| Destination | Indicative amount |
| Unity Trust current account | £54,762 |
| Unity Trust instant-access account | £90,000 |
| CCLA Public Sector Deposit Fund | £200,000 |
| Hampshire Trust Bank 95-day deposit | £250,000 |
| Nationwide 95-day deposit | £120,000 |
| Total | £724,762 |
This is an illustrative structure rather than a guarantee that these exact amounts will ultimately be invested. The report makes clear that the revised budget, cash-flow requirements and planned projects need to be taken into account before longer-term investments are made.
The Committee considered and approved the payment schedule presented to it.
The invoices and payments considered included:
| Supplier / Payee | Description | Total |
| Millennium Telecom Ltd | Telephone service – July 2026 | £96.54 |
| Anthony Collins Solicitors LLP | Victoria Hall professional/legal fees | £1,560.00 |
| Apogee Corporation Ltd | Quarterly copier lease | £113.29 |
| Travis Perkins | Washers, nuts and bolts | £6.43 |
| Travis Perkins | Timber for bench repair | £18.86 |
| Travis Perkins | Timber for bench repair | £24.23 |
| Blachere Illumination UK Ltd | Christmas lights – three-year hire contract | £18,868.24 |
| Kobras Band | Band – 16 August 2026 | £400.00 |
| S Haywood | Reimbursement of expenses | £405.62 |
| LGRC Associates Ltd | Monthly HR support | £150.00 |
| LGRC Associates Ltd | Locum Clerk services – July 2026 | £7,404.33 |
| Peninsula | HR service | £474.00 |
| Amazon | Purchase | £16.98 |
| Out of the Blue Band | Band – 23 August 2026 | £400.00 |
| Light Medical Ambulance Solutions | Healthcare and welfare provision for eight events | £2,112.00 |
| Total | £32,050.52 |
The schedule comprised £27,194.09 net expenditure and £4,856.43 VAT, producing a total of £32,050.52.
The largest individual item was the £18,868.24 payment to Blachere Illumination UK Ltd for the Christmas lights three-year hire contract. The second largest was £7,404.33 for Locum Clerk services supplied by LGRC Associates Ltd.
The payment schedule also demonstrates the range of expenditure now being brought before the Finance Committee for scrutiny, from routine administration and telephone costs to legal services, staffing, events, Christmas lighting and welfare provision.
The Committee also noted and signed the bank reconciliations and bank statements.
These documents had previously been checked and initialled by a councillor who is not a signatory to the relevant bank account.
The Committee recognised the importance of maintaining this independent checking function and the need for a second person to be appointed to carry out this role jointly.
The intention is to strengthen the Council's internal financial controls and assist the Council in meeting its audit and governance requirements.
This is particularly important given the investment report's recommendation for a clearer segregation of duties. Under the proposed arrangements, officers would administer and prepare payments, while two Finance Committee members would independently authorise electronic payments.
The proposed banking structure therefore goes beyond simply choosing a new bank. It introduces a clearer system of responsibility, authorisation and independent oversight.
Following its deliberations, the Finance Committee is recommending that Full Council consider and approve the following principal changes.
Banking
Move the Council's principal day-to-day banking arrangements to Unity Trust Bank.
Close the Lloyds current account following clearance and reconciliation of outstanding transactions.
Close the HSBC current account following clearance and reconciliation.
Transfer surplus HSBC funds into approved deposit and investment arrangements.
Retain an appropriate operational balance in the current account rather than holding excessive reserves in a non-interest-bearing account.
Payment controls
Appoint the Clerk/RFO and any Locum Clerk/RFO as banking administrators.
Require two separate Finance Committee signatories to authorise each electronic payment.
Allow the Clerk/RFO to prepare and submit payments but not independently authorise them.
Investment
Approve the proposed Investment Strategy.
Apply the principles of security, liquidity and yield.
Authorise investment of surplus funds in accordance with the agreed strategy.
Require quarterly reporting to the Finance Committee covering cash balances, interest earned, investment maturity dates, counterparty exposure and FSCS protection.
Review the Investment Strategy annually, and whenever there is a material change in the Council's financial position or the regulatory environment.
Update relevant Council policies, including Financial Regulations, to reflect the new arrangements.
The Finance Committee meeting marks an important change in the way Oakham Town Council's finances are being considered and monitored.
The revised budget attempts to provide a more detailed picture of the Council's actual financial commitments by identifying previously omitted expenditure, separating different categories of spending, correcting the recorded CIL position, reconsidering earmarked reserves and allocating expenditure to more appropriate cost centres.
The banking and investment review is equally significant. The Council has substantial cash resources, but a considerable proportion has been held in current or deposit accounts without an optimal return, while the Council has also faced difficulties accessing some of its existing accounts.
The proposed arrangements would simplify the banking structure while separating operational money from reserves and longer-term funds. They would also introduce a more formal approach to diversification and interest generation.
The proposed payment-authorisation system is another important governance improvement. Separating the officer responsible for preparing payments from the councillors responsible for authorising them creates a clearer system of checks and balances.
The 26 August 2026 Finance Committee meeting can reasonably be regarded as an important step in improving the financial governance of Oakham Town Council.
For the first time in many years, a dedicated Finance Committee has undertaken a broad review of the Council's financial position, rather than financial matters being considered only as part of the wider business of Full Council.
The work undertaken by Samantha Haywood, the Locum Clerk and RFO, has provided the Committee with a revised budget, a detailed examination of the Council's banking arrangements and a proposed investment strategy. The documents identify areas where previous budgets did not fully reflect known or anticipated expenditure and where the Council's cash resources could be managed more effectively.
The proposed 2026/27 budget is particularly important because it brings previously unbudgeted staffing, HR, payroll, telephone, audit, forensic audit, communications, office and other costs into the financial plan. At the same time, it identifies opportunities to use CIL and other funding sources appropriately rather than placing all expenditure on the Council's general revenue budget.
The banking and investment proposals could also materially improve the Council's financial position by reducing the amount held in non-interest-bearing current accounts and placing surplus funds into appropriately selected interest-bearing arrangements, while maintaining adequate liquidity and diversification.
Cllr Martin Brookes' comments that he felt vindicated by the findings should be recorded as his personal assessment of the Council's previous budgeting practices. His accompanying recognition of the work being undertaken by the Locum Clerk/RFO reflects the wider purpose of the reforms: to establish financial records, controls and procedures that provide councillors, auditors and residents with greater confidence that the Council's finances are being properly recorded, scrutinised and managed.
The next significant stage is consideration by Full Council. The Finance Committee's work provides recommendations, but the proposed banking changes, Investment Strategy and revised budget will need the appropriate Full Council decisions before the new arrangements can be fully implemented.
If approved and properly implemented, the measures considered at this meeting have the potential to provide Oakham Town Council with a considerably clearer, more transparent and more robust framework for financial management going forward.
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