Agreement on and Approval of Budget for 2025-26

Overview

The 2025-26 SPC Budget needs to formally approved by the RTM. Please read below, contribute a Comment if you wish to. Then use the platform at the bottom of the page to vote.

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Documents

RTM Proposed Budget v Prime Proposal

Context

The 2024–25 financial year included a number of irregular or unplanned spending areas, some of which reflect ongoing challenges in asset condition, contractor performance, and invoicing transparency. The following issues are most relevant to the 2025–26 budget planning:

Buildings Insurance – Timing and Cost Shift

The 2025–26 buildings insurance premium was paid early, falling within the 2024–25 accounting year. This pushed apparent costs up significantly. Although there was a real increase in premiums (c. £4,000), the spike in expenditure is partly an artefact of timing and not indicative of recurring overspend.

Managing Agent Fees – Documentation Concerns

A significant proportion of agency fees were recorded without invoices or clear descriptions, hampering transparency and verification. This issue must be addressed to ensure future fees are accountable and supported by proper documentation.

Escape of Water – Planned but Ongoing Issue

Spending under this category reflects an ongoing programme of work to address widespread water ingress affecting several flats. Although the root causes were unplanned, the remediation was budgeted. However, progress has been slow, and continued focus is required in 2025–26 to resolve outstanding cases efficiently.

Gate Repairs – Quality Concerns

There were multiple callouts for gate repairs. Evidence suggests the original contractor may have performed substandard work, resulting in repeat failures and higher costs. An investigation is underway, and findings may have budget implications for future repair or reinstallation costs.

Doors and Intercom – Repeated Callouts

There was a high volume of activity relating to door and intercom access systems, particularly MED locks. The frequency and vagueness of callout invoices suggest either systemic issues with the equipment or inadequate service reporting.

Cleaning and Window Cleaning – Clarity and Oversight

Routine internal cleaning charges were stable and predictable. However, window cleaning showed signs of duplication and inconsistent descriptions, and may benefit from contractor review and tighter oversight.

This context should inform both the adjustment of budget forecasts for 2025–26 and a wider review of procurement, contractor performance, and risk planning.

Capital Works Affecting Budget Planning
Roof Repairs
  • Status: Costs expected but not yet received
  • Impact: 2025–26 budget must allow for likely expenditure once confirmed
Fire Door Compliance
  • Status: Quotes obtained but not yet approved
  • Impact: Safety priority – should be included in 2025–26 budget
External Decoration Programme
  • Planned for: 2026
  • Estimated cost: £300,000
  • Budget action: 2025–26 must include first of three reserve contributions
Lift Modernisation
  • Status: Awaiting cost proposals
  • Budget impact: Provision may be required if figures are received in time
Reserve Fund Requirements
  • Current reserves (2023/24): £57,788
  • Target for external decoration: approx. £300,000
  • Strategy: proposal to increase Service Charge to cover the cost split between this year and 26-27
Reserve Use and Allocation Strategy

Reserves at the end of 2023–24 stood at approximately £57,788. These will need to be used carefully to address urgent works that were not completed in 2024–25. The current proposal is to fully fund fire door compliance from reserves, with the remainder going toward roof repairs or water ingress mitigation depending on urgency and available quotes. This will leave little to no reserve available for future projects, including the planned £300,000 external decoration in 2026.

Proposed reserve allocations:
  • Fully fund fire door compliance (£15,000–£30,000)
  • Use remaining reserves for roof or water ingress works
  • No reserves left for 2026 external decoration – major contribution needed in 2025–26 budget

 

Have Your Say

Please use the comment section below to add your thoughts, ask questions, or propose alternatives. Constructive discussion is welcomed from all members.

Vote on the Proposal

Voting is open until Friday 8th August at 11.59 PM.

 

Next Steps

  • Comments and discussion close at: Friday 8th August at 11.59 PM.

  • Voting results will be reviewed and a decision shared by: Monday 11th August

  • A follow-up notice will outline the next budget update based on the outcome.

 

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