Issue - meetings

Report of the Director – Finance and Corporate Services

The Finance Business Partner presented the Q1 position in terms of the Council’s financial monitoring for 2023/24.

The Group were advised that there is a predicted net revenue budget efficiency of £0.55m for 2023/24 mostly as a result of favourable business rates. This represents a variance of 3.8% of Net Service Expenditure. However, this is expected to be earmarked for additional cost pressures in relation to inflation and the staff pay award. The position is likely to change as further variances are identified during the year.

The Group were advised of capital budget efficiencies expected to be around £6.5m, primarily due to Support for Registered Housing Providers (£2.723m), Gypsy and Traveller Site acquisition (£1m) and crematorium contingencies (£0.783m).

The Finance Business Partner advised of the main adverse variances arising from:

·       Rushcliffe Oaks Crematorium with the income budget being set assuming 60 cremations per month from the outset rather than a lower target allowing for the service to grow. Since opening in March, income has been lower than expected as the number of cremations is around 30 and rising.

·       Streetwise are currently forecasting a budget pressure of £0.35m due to vehicle hire and the results of an independent report and recommendations linked to the way forward in relation to carbon reduction.

·       Depot and contracts overspend on tyres due to both consumption and the increasing cost of rubber and a service payment for the car park SLA in relation to 2022/23

·       £0.35m is also required in relation to a property related legal claim

·       Increased income attributable to the Nottinghamshire Business Rates pool surplus, a lower Business Rates Levy and additional grant income are among the biggest favourable variances

In concluding the Finance Business Partner advised the Group there is an overall projected budget efficiency of £0.55m. However, inflation remains high and the consequential rising cost of living present a significant risk to the Council’s budget. Furthermore, planned savings are falling short of expected targets and this adds further pressure.

The position on capital is currently positive and there is still no need for the Council to externally borrow this financial year.

Councillor Plant asked a specific question relating to the Gypsy and Traveller site allocation and the impact of illegal encampments on Council resources and expenditure. Councillor Edyvean explained that the Council is required to provide a permanent site for travellers not for those arriving illegally each year. A permanent site is being proposed at Fairham as part of the Local Plan part 2. The Finance Business Partner added that there is no additional funding for this provision, but the Council is commited to provide a site for seven caravans by 2025. It was suggested that a transit site be considered for the Travellers who arrive in the Borough annually.

Councillor Edyvean questioned the loss in value of the Council’s Multi Asset investments (pooled funds) and whether this was a concern. The Finance Business Partner advised that these funds form part of the Council’s Treasury Management Strategy approved by Full Council.

Questions  ...  view the full minutes text for item 11