Decision details

The Financial Services Manager presented the report of the Executive Manager – Finance and Corporate Services detailing the Revenue and Capital Budget position for Quarter 1 2018/19. The report provided the budget position for revenue and capital as at 31 July 2018 along with the appropriate recommendations for referral to Cabinet.

The Financial Services Manager  advised that overall, the Council’s financial position was relatively stable with revenue efficiencies and additional grant income of £98,000 offset by the slightly less favourable business rates position of £161,000 providing a net position of £63,000 which represented a 0.6% variation against the net expenditure budget. It was also noted that £1.19m was expected to be transferred to reserves, so that the Council could meet significant challenges and risks going forward. The capital programme indicated a planned underspend of £10.237m, due to a slowdown in asset investment and the outcome of the relocation of the Abbey Road  Depot project is yet to be made.

Councillor Cooper enquired on what was contributing to the rising costs for additional items within the Streetwise primary contract. The Executive Manager – Finance and Corporate Services advised that the adverse variances were due to an increase in fly-tipping cases and the cost of cleaning up. The Executive Manager also advised that fly tipping was reported to the Performance Management Board for scrutiny, adding that efforts were being made to target hotspot areas for fly tipping. Councillor Walker questioned whether the Council had plans in place for Ratcliffe on Soar Power Station when it was due to be decommissioned in 2025 and the adverse effect this would have on business rates revenue. The Executive Manger advised that there were ongoing discussions happening regarding potential future use for the site and noted that the business rates pooling arrangement that operated with Nottinghamshire County Council and the other Districts may mitigate the risk of this loss of income.

The Chairman questioned the adverse variances in excess of £15,000 in respect of Transformation and Human Resources enquired about the causes of these increased costs. The Executive Manager advised these variances were due to extra staff being recruited in Property Services to meet an increased workload and the increase in occupational health counselling in respect of employees.

The Chairman requested more detailed information in future reports, in respect of the explanations for Revenue variances, in particular the Adverse Variances under £15,000. The Executive Manager agreed to include this information in the financial monitoring report that would be submitted to the group at the next meeting.

It was RESOLVED that the Revenue and Capital Budget Monitoring report be forwarded to Cabinet for approval noting:

a)    The projected revenue position for the year with minor 0.6% variation (£63K) in the revenue position (due to the expected business rates position; and

b)    The capital underspend of £10.237m as a result of capital scheme re-phasing and projected savings.