Supporting Document 2026 January 26

Subject: 2026/27 Budget and Precept Demand

Date: 21 January 2025

Author: Annette Thom (Clerk & RFO)

1. Proposed Budget & Precept Demand

The budget presented proposes to increase the precept from £29,943.00 to £35,973, an increase of £6,030 or 20%.
This is an increase of £13 per year for each Band D equivalent household (to £76.44 annually).

In combination with using all of the churchyard reserve fund this level of precept would fund the planned maintenance of the churchyard wall and the first stage of maintenance of the churchyard gates in the event of grant applications being unsuccessful. If grant applications are successful the Parish Council would retain some churchyard reserve funds towards future maintenance.

2. 26/27 Budget Calculation

   Receipts	£42,038.16
   Payments	£55,111.60

   1. Base assumption of 4% inflation on regular expenditure¹, ², items reviewed and adjusted as indicated.

   2. Salary

I have used the 15 hours per week recommended by the March Personnel Committee meeting. This is an increase from 11 hours per week core hours and similar to 25/26 budget.

1. 3. Churchyard

      1. BPC took legal advice to clarify long-standing uncertainty, the outcome of which was that in July 2025 it decided that despite the wording of the 1977 letter BPC will treat it as a request for BPC to take over the maintenance responsibility for the churchyard from that date.

      2. It is forecast that the reserve fund for the maintenance of the churchyard will be £13,244 at the end of 25/26.

      3. Maintenance of Gates

BPC has a current project to maintain the churchyard gates. Total cost £20,000. Grants are being sought. If possible I propose to do the work in two stages costing about £10,000 each.

1. 1. 4. Maintenance of Wall

BPC is planning works to the churchyard wall. The works are as recommended by a Conservation Accredited Structural Engineer who is also a consultant for the Diocesan Advisory Committee (DAC). Quotes are currently being processed.

BPC has a separate report and more details.

1. 1. 5. Information Lectern

BPC plans to install a lectern to explain its grounds management in the churchyard to promote habitat and biodiversity.

1. 1. 6. Management of potential liability of churchyard walls

The purpose of BPC’s preventive maintenance program is to prevent more costly works or subsidence in the future.

The walls are not insured against subsidence. It appears that it is not possible to insure them against subsidence (reply to one enquiry is pending).

If BPC had to fund rebuilding after subsidence, BPC might:

a. Request a loan, for example from the Public Works Loan Board (which funds ‘capital’ expenditure, eligibility for this purpose is being confirmed), and correct via increased precept over subsequent years, or

b. Hold a Churchyard reserve and unearmarked funds, or

c. Combine both of the above approaches.

3. Cemetery

   1. Ideally gates will be repainted reasonably soon. There is no current plan or costing. The reserve fund (£1,713) would be used.

4. Reserves Allocations & Unearmarked General Fund

   1. Councils hold between 3 and 12 months worth of un-earmarked general fund reserves. A larger council may be closer to 3 months, a smaller council closer to 12 months. Purpose of earmarked reserves – scheduled replacement, irregular work Purpose of unearmarked reserves – cash flow/unexpected expenditure. A carry forward unearmarked reserves balance of more than twice the precept requires explanation to the External Auditor. The appropriateness of reserves must be justified.

5. Forecast 2025/26 Year-end (FYE) Financial Position

Brought Forward	59,657
25/26 FYE Payments	39,836
25/26 FYE Receipts	34,785
25/26 Net	-5,052
Carry Forward	54,605
Reserves Balance
Actual 01/04/2025	49,325
Actual 31/12/25	43,693
Forecast spend to 31/3/26	5,575
Forecast Reserves 31/3/25	38,118
General Fund
Forecast 31/3/26	16,487
Scribe has calculated a budget payments overspend (-10,673). This is primarily due to reserves spent.
Reserves Spend
588	Sustainable Blackawton	In 25/26 FYE but not yet spent
198	Defibrillator
4,235	Village Hall Grant
1,500	Business Units	In 25/26 FYE but not yet spent
285	IT Equipment
1,000	New noticeboard	In 25/26 FYE but not yet spent
1,985	Churchyard	In 25/26 FYE but not yet spent
502	SHDC Grant Tree Planting	In 25/26 FYE but not yet spent
784	Churchyard Maintenance
11,078

Note – The reserve SHDC tree grant dating from 15/11/19 (£502) used to pay to replant trees in the Churchyard – the trees chosen support habitat.

Assumptions – All of Parish Lengthsman hours available are used Clerk paid 15 hours per week, and that BPC pays the current Sustainable Blackawton grant request which will be considered on 9 February.

6. Attachments

   1. ‘Budgeting Report’.pdf from Accounting software

   2. ‘Forecasting Report Year End 2025 26’.pdf from Accounting software

   3. Parish Calculator Tool 2026_27 (SH)- 181225 corrected.xls

   4. Proposed 26 27 Budget.xls

   5. Report against budget at 2025 December 31.pdf from Accounting software

   6. Reserves Balance up to 31st Dec 2025.pdf from Accounting software