Tonbridge & Malling Borough Council’s cabinet considered a mid-year financial update on 1 September 2026 showing a net favourable variance of £66,093, though officers flagged rising planning appeal costs and a £50,000 postage overspend as emerging risks.

Tonbridge & Malling Borough Council’s cabinet considered a financial monitoring report on 1 September 2026 showing the authority was running £66,093 ahead of its proportional budget as at the end of July 2026, the second monitoring report of the 2026/27 financial year.

Overall position

The council set a revenue budget of £13,036,903 in February 2026, with a council tax requirement of £13,812,921. Officers reported a net favourable variance of £66,093 against the profiled budget to the end of July, driven primarily by stronger-than-expected income and investment returns. Officers cautioned that it remained relatively early in the year and that the variation was expected to continue to fluctuate.

Income and investment

Income came in £103,814 above the profiled budget, primarily from car parking receipts, partially offset by shortfalls in local land charges and cemetery income. Core investment funds totalled £36.0m at the end of July, generating £458,340 at an average return of 4.11%, producing a favourable variance of £123,340 against the original estimate. Cashflow funds stood at £21.5m, generating £321,710 at an average return of 3.82%, a positive variance of £48,710, which officers attributed to the Bank of England maintaining the bank rate at 3.75%.

Salary pressures and emerging risks

Salary costs were running £54,050 above the proportional budget, primarily due to agency staff covering sickness and vacancies within planning and legal services. Officers also identified a projected overspend of approximately £50,000 on postage costs for revenues and benefits, and said work would be undertaken to promote electronic notifications to reduce ongoing costs.

The report noted that the £140,000 income previously received from Kent County Council in respect of council tax reduction adjustments had ceased. Business rates for council properties were also below the budgeted amount by £71,000 following a revaluation in April 2026.

On a more positive note, the number of households in temporary accommodation stood at 97 at the time of writing, below the budgeted level of 110 and a reduction from 122 households at the same point the previous year. Officers said a watching brief would be maintained given ongoing pressures within the homelessness service.

Planning appeal costs flagged as budget risk

Officers identified planning appeals as presenting one of the greatest challenges to the approved budget, including potential awards of costs against the council in certain cases. The report stated that the financial implications of appeal decisions were being monitored closely and remained an ongoing area of budget risk that might require full council approval.

Business rates and capital programme

The council received the final major valuation for Panattoni Park at Aylesford, backdated to 2025/26. As a result, the predicted net business rates income increased to £4,798,218, or £4,367,565 after deducting the levy to central government, a positive variation of £1,004,858 against the original estimate of £3,362,707.

Capital spending to the end of July 2026 stood at £2,606,000 against an approved capital budget of £23.0m for the year. Major projects include the Replacement Angel Centre, Temporary Accommodation and Resettlement Scheme, and Gibson East Refurbishment. The council also completed the purchase of land at Sovereign Way in Tonbridge from Kent County Council for £87,000 to assist with the replacement leisure centre.

The council had not published the minutes of the meeting at the time of writing, so the committee’s decision is not yet on the public record.

Sources

Top image: illustrative, computer-generated. Illustrative AI-generated image. This is not a photograph of Tonbridge & Malling Borough Council or any real building.