Agenda item

Report of the Director – Finance and Corporate Services

It was RESOLVED that Cabinet approved the attached report and noted that:

a)             the expected revenue budget efficiency for the year of £1.723m and proposals to earmark this for cost pressures (paragraph 4.1) were noted

b)             the capital budget efficiencies of £3.758m including various re-profiling stated at paragraph 4.7, included in the MTFS to Full Council were noted

c)             the expected outturn position for Special Expenses to be £3.2k below budget (paragraph 4.5) were noted.

The Cabinet Portfolio Holder for Finance and Customer Access, Councillor Moore, presented the report of the Director Finance and Corporate Services which set out the budget position for revenue and capital as at 31 December 2022.

Councillor Moore said that the overall picture was positive, with a predicted efficiency of £1.72m primarily as a result of Business Rates pool, additional investment income and additional grants. He noted that this position could, and probably would, change during the following quarter but that the money was currently earmarked to assist with cost pressures and to cover reductions in the value of pooled investments which sat at £973k. Councillor Moore said that the money would also be used to enhance current service challenges.

Councillor Moore referred to a number of cost efficiencies, including a large increase in investment income as a result of higher interest rates, increased cash balances, increased planning income and increased usage of Edwalton Golf Course. He confirmed that efficiencies were tempered by increases in agency staff costs and lost income from the delayed opening of Bingham Hub and the Crematorium, although he was pleased to note that both were back on track, with feedback from Bingham Hub being that it was busy and generating revenue.

In relation to cost pressures, Councillor Moore said that these included staff salaries following a pay award in November 2022 which added £550k and inflation reaching 11% during the quarter which affected all departments and in particular energy costs.

Councillor Moore said that the overall capital budget, including carry forwards, was £22.2m, of which the Council anticipated that it would spend £18.5m, resulting in an underspend of £3.7m which would be carried forward. He confirmed that the carry forward combined with capital receipts meant that the Council did not currently have to borrow.

Councillor Moore confirmed that the overall financial position for both the revenue and capital budget was positive, considering the current economic climate and he was pleased that the local government finance settlement had delivered some clarity regarding future funding, including a new round of New Homes Bonus, and a grant to ensure that local authorities received an increase of at least 3% core spending power over the next two years. He noted that Government had deferred resetting Business Rates, New Homes Bonus and the Fairer Funding review until at least 2025/26.

Councillor Moore concluded that the Council was keeping tight control of expenditure whilst maximising income streams and opportunities.

In seconding the recommendations, Councill Edyvean said that report demonstrated how, even against a challenging background, the Council could manage its finances positively. He referred to the high agency costs and explained that a large amount the expenditure had been to cover planning and thought that the service provided by the Council was better than many other local authorities.

Councillor Edyvean noted that even though capital receipts were significantly down against forecast, the Council could still meet its borrowing requirements from internal resource. He thought it positive that the Council’s approach to the pay settlement had meant that staff on lower salaries received a proportionately higher increase compared to those on a higher salary and said that it was a shame that other parts of the public sector did not show such pragmatism. He thanked the Director Finance and Corporate Services and his team for their continued hard work and dedication.

Councillor Robinson echoed his appreciation for the work of the Finance Team during difficult conditions. He highlighted the positive situation of Edwalton Golf Club and said that this endorsed the investment made by the Council with it forming an important asset as part of the Council’s leisure strategy.

Councillor Robinson noted the excellent financial health of the Council and whilst there were uncertainties in the future, he thought that very few councils would meet them from such a strong financial position.

It was RESOLVED that Cabinet approves the report and that:

a)             the expected revenue budget efficiency for the year of £1.723m and proposals to earmark this for cost pressures (paragraph 4.1 of the report) be noted;

b)             the capital budget efficiencies of £3.758m including various re-profiling stated at paragraph 4.7 of the report, included in the MTFS to Full Council be noted; and

c)             the expected outturn position for Special Expenses to be £3.2k below budget (paragraph 4.5 of the report) be noted.