Agenda item

Revenue and Capital Budget Monitoring 2022/23 - 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 the following details in the report be noted:

a) the expected revenue budget efficiency for the year of £1.073m and proposals to earmark this for cost pressures;

b) the capital budget efficiencies of £6.170m including the re-profiling of provisions totalling £1.465m to 2023/24 for Cotgrave Leisure Centre, Keyworth Leisure Centre, and West Park;

c) the transfer of £0.15m from the Streetwise Loan Provision to Capital Contingency;

d) the expected outturn position for Special Expenses to be in line with the budget; and

e) the Council positively engaging in securing external funding with regards to the UK Shared Prosperity Fund, Levelling-up and Safer Streets.

Minutes:

The Cabinet Portfolio Holder for Finance and Corporate Services, Councillor Moore presented the report of the Director – Finance and Corporate Services outlining the budget position for revenue and capital as of 30 June 2022.

Councillor Moore referred to the continued challenging financial times faced by everyone and advised that this report had been considered by the Corporate Overview Group on 6 September, which had identified no significant issues. Continued prudent financial management ensured that the Council continued to manage identified risks, and Councillor Moore confirmed that a revenue budget efficiency of just over £1m was projected.

Reference was made to the Capital Programme, with details of the estimated underspend of £6.1m highlighted in paragraph 4.7 of the report. Councillor Moore advised that given the concerns with the cost of living crisis, paragraph 4.11 of the report detailed the various collection rates, and Cabinet noted that although that currently looked positive, the situation could change.

Councillor Moore referred to two of the Council’s significant projects, the Crematorium and the Bingham Leisure Hub, details of which were highlighted in paragraph 4.12 of the report and advised that due to external factors completion would be delayed, although it was hoped that they would be completed soon.

In respect of the Council’s intention to secure external funding to deliver both the UK Shared Prosperity Fund and Levelling Up funding, Cabinet noted that the former related to £2.5m over three years, with the later related to delivering new infrastructure and improvements, details of which were highlighted in paragraphs 4.14 and 5.15 of the report.

Councillor Moore referred to Appendix E, which detailed the Quarter 1 position of the Special Expenses budget and advised that it was expected to be on budget, although that might change through the year as variances were identified.

Councillor Moore concluded by reminding Cabinet that it was due to the Council’s good financial position that it could face current and future challenges, and as the situation continued to change, the Council would need to remain prudent.

In seconding the recommendation, Councillor Edyvean thanked Councillor Moore for his comprehensive summary and reminded Cabinet that although the Bingham Leisure Hub project had been delayed, which was disappointing, it would be completed below budget by £1m, despite rapidly increasing building costs. Councillor Edyvean stated that the Council remained debt free, commended the Director of Finance and Corporate Services and his team for their excellent work and noted that although there would continue to be challenging times ahead, the Council would face those with its continued good financial planning.

The Leader stated that the only advantage of rising inflation was the increased interest rates, which generated additional income through the Council’s investments and that positive aspect should be noted.