Issue - meetings

Revenue and Capital Budget Monitoring 2023/24 - Financial Update Quarter 1

The report of the Director – Finance and Corporate Services is attached.

Decision:

It was RESOLVED that the report be approved, and that:

a) the expected revenue budget efficiency for the year of £0.55m and proposals to earmark the for cost pressure (paragraph 4.1of the report) be noted;

b) the capital budget efficiencies of £6,457m be noted; and

c) the expected outturn position for Special Expenses to be £6.5k over budget (paragraph 4.5 of the report) be noted.

Minutes:

The Cabinet Portfolio Holder for Finance, Councillor Virdi presented the report of the Director – Finance and Corporate Services, which set out the budget position for revenue and capital as at 30 June 2023.

Councillor Virdi stated that given the various financial challenges faced by the Council, the overall position was relatively positive, and it was noted that the report had been considered by the Corporate Overview Group, with no significant issues arising.

In respect of revenue, Councillor Virdi confirmed that there was an overall revenue budget efficiency of £0.55m, with the key issues relating to that highlighted in Table 1 of the report. Cabinet was advised that whilst there were some adverse variances, in particular as a result of a one off legal property dispute, Streetwise operations and the Crematorium, action was being taken to ensure that the financial profile for those improved. In respect of Streetwise, reducing vehicle hire charges was being investigated, and at the Crematorium ways to increase usage and revisiting charges also were being looked at. Councillor Virdi referred to Paragraphs 4.9 and 4.10 of the report, which detailed the pay and inflationary pressures faced by the Council, together with the cost of living crisis, which would affect the Council’s Medium Term Financial Strategy and budgetary planning process going forward. However, Cabinet noted that on a more positive note, Business Rate income was higher than budgeted, which had helped to offset some of the variances.

In respect of capital, Councillor Virdi referred to the key variances in relation to the Capital Programme, with an estimated underspend of £6.457m, with details of those particular areas highlighted in Paragraph 4.7 of the report.

Councillor Virdi referred to Paragraph 4.5 of the report and to Appendix E, relating to the Special Expenses budget, which showed a £6.5k variance, which had primarily been in relation to costs incurred from a traveller encampment.

Councillor Virdi concluded by reminding Cabinet that this was early in the financial year, with the Council continuing to face many risks and challenges, and it was imperative that it continued to keep a tight control on finances, remain resilient and manage its sustainability.

In seconding the recommendation, Councillor J Wheeler referred to the importance of properly scrutinising finances and referred to the difficult position being faced by many other councils, and it was pleasing that Rushcliffe was in a strong financial position. It was acknowledged that changes occurred, with projects moving during the year and it was reassuring that the report detailed how those projects would be delivered going forward.