The Assistant Director – Resources presented the Quarter 1 Corporate Performance Report for 2025-26, noting that this is the first quarter reporting on the new Corporate Strategy that was approved by the Authority in February.

The Assistant Director – Investment Strategy provided an update on the Investment Performance, noting that a separate report for this quarter was not included in the agenda due to the recent transition to a new custodian, which led to some inevitable teething issues. A slimmed-down version of the report will be made available in the online reading room for members in due course and normal reporting procedures will resume from next quarter.

The Head of Finance and Performance provided an update on the budget outturn, noting that there was a forecast £247k underspend, some of which will be used towards costs associated with clearing the backlog in pensions administration. The prime driver of the underspend was employee costs, including the pay award which was budgeted at 4% but was now confirmed at 3.2%; alongside some recruitment delays and the Director transition which has had a knock-on effect.

Members probed about the risk relating to clearing the backlogs, asking that if we are not able to meet the current target what will be a realistic timeline for clearing the casework. The Assistant Director – Pensions responded that we hope to have it cleared by March next year based on current clearance rates and will be keeping a very close eye on it.

Members further questioned whether there was a published timeline for the Investment Strategy Statement and consultation arrangements.

The Director responded that there will be engagement with elected members in the period leading up to March 2026, before it is brought to the Authority for approval. Further to this we are obliged to consult with those who have an interest in the strategy.

Members requested an update on the procurement for the Local Affordable Housing Mandate Manager and how this will interact with local authorities.

The Assistant Director – Investment Strategy updated that we are expecting responses from managers who are continuing in the process and the assessment day is scheduled to take place in two weeks' time. During this session, there will be detailed discussions and scrutiny. As part of these discussions, we will also be looking to understand how the managers plan to engage with local authorities.

Members sought further explanations in relation to the risk register section of the report; with questions relating to the increased risk of cashflow imbalances as a result of anticipated reduction in employer contributions income, and about the risk relating to Border to Coast strategic plan and expansion.

The Director explained that there would be a post-lunch briefing session from the actuary to provide further details regarding the valuation results and implications for employer contribution rates. He also noted that the Assistant Director – Investment Strategy will work with the investment consultants to assess the investment income needed to bridge the cashflow gap between contributions and pension  ...  view the full minutes text for item 10