Agenda item

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

It was RESOLVED that Cabinet approves the report noting:

a)           the expected revenue budget efficiency for the year of £0.831m and proposals to earmark this for cost pressures;

b)           the capital budget efficiencies of £4.98m including the re-profiling of provisions totalling £1.965m of which £0.465m to 2023/24 and £1.5m to 2024/25; and

c)           the expected outturn position for Special Expenses to be £61k above budget.

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

Councillor Moore stated that the overall picture was positive, with a predicted net efficiency of £831k; however, the position was likely to change with additional cost pressures identified, many of which were discussed at the two Budget Workshops.  Cabinet noted that Table 1 of the report highlighted some interesting variances, primarily lost income due to delayed capital projects, various additional costs, and rental income, and were showing an adverse variation from budget.  On a more positive side, Councillor Moore welcomed the increases in investment income, and increased income from Edwalton Golf Course and planning fees.

The Revenue Monitoring Statement for each service area was detailed in Appendix A to the report, with an update on Special Expenses detailed at Appendix E, which Councillor Moore advised was currently expected to be £61k.  That figure was above budget, primarily due to increased utility costs and maintenance. 

Councillor Moore advised that the original Capital budget for this year was £24.18m, with the projected outturn now at £19.2m, with the underspend primarily due to project delays. 

Cabinet was reminded of the pressures being experienced, including pay increases, inflation, together with an anticipated drop in collection rates.  In respect of Business Rates, Councillor Moore advised that the situation had been very positive this Quarter, although that could not be relied upon going forward.

Councillor Moore confirmed that the report had been considered by the Corporate Overview Group, and no significant issues had been raised.  He concluded by stating that the report was positive, although Cabinet was reminded that there were uncertainties ahead, and it was important to use this positive efficiency wisely.         

In seconding the recommendation, Councillor Edyvean stated that everyone was aware of the cost of living pressures suffered by residents, and this report highlighted that the Council was not immune to those pressures, which were likely to increase going forward, and the Council’s continued sound financial management was important.  

Councillor Edyvean highlighted the money spent on agency staff for planning and refuse collection; however, he stated that those were two areas where the Council consistently outperformed other councils, and it was important to get the balance of service provision and costs right. 

In conclusion, Councillor Edyvean stated that this was a positive report, which highlighted the hard work of officers and thanked the Director – Finance and Corporate Services and his team for ensuring that the Council continued to be financially well managed.  

Councillor Robinson reiterated the thanks given to officers and referred to the current difficult times and to the challenges which lay ahead.  He referred to the increased planning fees, which highlighted the considerable pressures on the authority to deal with that, and the importance of matching resources with fees coming in.  Cabinet was reminded that the timeframe of delays was due to the large capital projects, which were always challenging to deliver, although it was positive to see that they were on budget and should be delivered on time.

It was RESOLVED that Cabinet approves the report noting:

a)           the expected revenue budget efficiency for the year of £0.831m and proposals to earmark this for cost pressures;

b)           the capital budget efficiencies of £4.98m including the re-profiling of provisions totalling £1.965m of which £0.465m to 2023/24 and £1.5m to 2024/25; and

c)           the expected outturn position for Special Expenses to be £61k above budget.