Issue - meetings

The report of the Director – Finanace and Corporate Service is attached.

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

a)               the expected revenue budget efficiency for the year of £0.287m and proposals to earmark this for cost pressures (£0.187m) and £0.1m for the DevCo to be carried forward over the next two years, as referred to in Paragraph 4.1 of the report be noted;

b)               the projected capital budget efficiencies of £9.292m, including the re-profiling of provisions totalling £6.068m to 2024/25 and £1m to 2025/26, as referred to in Paragraph 4.7 of the report be noted; and

c)                the expected outturn position of £12.3k overspend for Special Expenses as referred to in Paragraph 4.5 of the report be noted.  

The Cabinet Portfolio Holder for Finance, Transformation and Governance, 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 September 2023.  Councillor Virdi advised Cabinet that a slight amendment had been required to the alignment of the rows on part of Appendix D at Page 22 of the report and that had been updated and circulated.

Councillor Virdi stated that given the various financial challenges faced by the Council, the overall position was positive.  Cabinet was reminded that wider economic risks still prevailed, whilst the position remained fragile 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 £0.287m, with £100k of this still committed in relation to the Development Corporation, details of which were highlighted in Paragraph 4.3 of the report.. Councillor Virdi advised that the key issues impacting the current revenue position were highlighted in Table 1 in the report.  Cabinet was advised that there had been some adverse variances, which had previously been reported, including the expected income from the Crematorium and the increased vehicle costs from the Streetwise operations.  Councillor Virdi reported on some positive variances in relation to utility costs, additional grant income, and a more favourable Business Rates position.  Cabinet noted the pressures to the budget, including pay and inflationary pressures as detailed on Page 11 of the report.  In summary, Councillor Virdi advised that he was pleased to report that the Council had achieved an overall budget efficiency during this quarter.

In respect of capital, Councillor Virdi referred to Page 10 of the report, which focused on some of the key variances in relation to the Capital Programme, with an estimated underspend of £9.292m, with £7.068m of that in relation to scheme rephasing, details of which were highlighted in Table 2 on Page 10, with a remaining £2.224m underspend, with further details of those referred to on Page 11 of the report.  Councillor Virdi confirmed that £1.31m of the underspend would be advanced in relation to the replacement of refuse collection vehicles.  

Councillor Virdi referred to Paragraph 4.5 of the report and to Appendix E, relating to the Special Expenses budget, which showed a slight overspend of £12.3k, which was primarily due to a reduction in community halls income, which was more than likely linked to the cost of living challenges.   

Councillor Virdi concluded by confirming that the Council was currently in the process of setting the budget for next year and referred to the continued financial challenges being faced.  In the last 12 months inflation had been very high; however, that had now stabilised and was reducing, it was likely that interest rates would remain high for the foreseeable future, and those factors had to be considered.  It was therefore imperative that the Council continued to keep a tight control  ...  view the full minutes text for item 45