Issue - meetings

Report of the Director - Finance and Corporate Services

The Senior Finance Business Partner presented the Q1 position for the Council’s financial and performance monitoring for 2024/25.

The Senior Finance Business Partner said that there was currently a projected underspend in both revenue and capital which were proposed to be earmarked for additional cost pressures. She referred to the variances set out in Table 1 of the report, notably favourable variances due to interest on income, additional funding and grants, and business rates. She also noted the most significant adverse variant arising from planning, due to appeals and enforcement. She explained that the Council did have a reserve fund for planning variances but that as there were in year efficiencies it would be covered through those.

The Senior Finance Business Partner referred to Table 2 for the earmarked proposed uses for the underspend.

In relation to the capital programme, the Senior Finance Business Partner said that the Council proposed to rephase £3.756 of the underspend to 2025/26 as summarised in Table 3. She said that the remaining underspend was mainly due to £1m allocated for the travellers site acquisition which would potentially be removed later in the year as no sites had been identified, and underspends on Rushcliffe Oaks Crematorium and Bingham Arena, where funds had been allocated for possible VAT liability and post opening enhancements, but which could potentially be released later in the year.

The Senior Finance Business Partner informed the Group that the Council did not have any external borrowing and was in a healthy financial position, but that this could change. Over the longer term, she noted that capital resources were diminishing and that the Council had big environmental objectives which needed to be met.

The Chairman said that she thought the Council’s underspends and efficiencies to be good given the recent fluctuations in interest and inflation rates.

The Vice Chair of Communities referred to the efficiencies from staff positions not being filled and the Senior Finance Business Partner explained that the majority of these had occurred where there had been changeover of staff and a period of time between the outgoing staff member leaving and the new employee starting. She said that there were also some posts which the Council did not plan to fill.

In relation to Table 2, the Vice Chair of Communities referred to the underspend from West Bridgford Town Centre regeneration and pedestrianisation of Central Avenue and the Senior Finance Business Partner said that this project was on the Council’s radar and so it was holding the funds as potential.

The Vice Chair of Communities referred to Table 3 and asked why projects weren’t being taken forward if the money was available and the Chair of Growth and Development Scrutiny Group echoed this sentiment. The Senior Finance Business Partner referred to Appendix D which provided more information on the capital programme. In relation to Hound Lodge, she said that the Council was waiting for a review of the facility to be completed before undertaking any works and in relation the  ...  view the full minutes text for item 14