Agenda item

Report of the Director – Finance and Corporate Services

The Senior Finance Business Partner presented the Q4 position for the Council’s financial and performance monitoring for 2023/24. She confirmed that the Council had published its Final Accounts on 31 May in line with statutory deadlines.

The Senior Finance Business Partner said that the revenue budget had an overall underspend of £1.663m and that the capital programme had an underspend of £5.710m. She said that the revenue efficiency would be mainly allocated towards risks for 2024/25 and that capital underspend would be carried forward for completion of existing projects

The Senior Finance Business Partner referred to Table 1 of the report which provided an overview of the revenue outturn position and showed that £1.958m had been transferred to reserves. She said that the main risks for 2023/24 related to inflation and the staff pay award being higher than anticipated, although the Council had been able to absorb it.

The Senior Finance Business Partner said that the Council had a £0.315m underspend on net service expenditure and had received additional grants and business rates income which contributed towards the net increase of £1.663m.

The Senior Finance Business Partner referred to the capital value of treasury investments which showed an increase in value of £0.272m which though still a loss, was expected to increase. She said that the Council had been prudent in creating a reserve to cover this should it be required to.

In relation to Business Rates and Council Tax, the Senior Finance Business Partner said that the Council had ensured that applicable Business Rates reliefs were applied and that the Council had administered flood relief and grants to affected properties. She said that the Council had undertaken a review of Council Tax single person discounts which had generated additional Council tax revenue.

The Senior Finance Business Partner referred to paragraph 4.11 of the report which provided information about UKSPF and Rural England Prosperity Funding. She referred to the Council bringing Streetwise inhouse which although having some initial challenges, including in relation to costs regarding vehicle leasing which were now being managed through the vehicle replacement programme, the Council hoped to deliver the transformational savings over the long term.

In relation to Rushcliffe Oaks Crematorium, the Senior Finance Business Partner said that whilst income had been down at the beginning of the year it was encouraging that it had reported a net surplus overall and that positive feedback had been received from industry colleagues and people who had attended services there.

In relation to Carbon Reduction, the Senior Finance Business Partner said that the Council had committed to achieving carbon neutral status by 2030 and as such some underspend monies would be allocated towards carbon offsetting and land acquisition potential.

The Senior Finance Business Partner informed the Group that reserves had increased to £20.947m and that the general fund balance was £2.604m.

In relation to the capital programme, the Senior Finance Business Partner said that there was an underspend of £5.710m, the majority of which was recommended to be carried forward.

The Senior Finance Business Partner said that underspend mostly related to Rushcliffe Oaks Crematorium and Bingham Leisure Centre, both of which were now going through final accounts. She said that there was also underspend for registered housing providers and retrofit grants, with both recommended to be carried forward.

The Senior Finance Business Partner referred to Appendix D which detailed the special expenses budget which showed an £8k overspend.

Overall, the Senior Finance Business Partner noted that the Council had not had to draw on reserves nor borrow but was aware that there was much risk going forward.

Members of the Group referred to the Council awaiting the outcome of a review by the Valuation Office Agency as to whether it could claim for the full rent increase charged by a supported housing provider in the Borough and asked for more information on the process, whether there was any requirement for the Council to be consulted on the rent increase and whether the Council had to cover all or a percentage of the rent. The Senior Finance Business Partner said that she would report back to the Group.

The Vice Chair of Communities referred to the Disabled Facilities Grant and the Cabinet decision in July 2022 to suspend the discretionary part of that pending a national review of the formula and asked whether that review had taken place. The Senior Finance Business Partner said that she would report back to the Group.

The Communications and Customer Services Manager presented the Q4 Performance Scorecards, as found at Appendix G.

The Communications and Customer Services Manager referred to the value of savings achieved for the Transformation Strategy, noting that Rushcliffe Oaks had gone through a settling in period along and been impacted by a national trend of reduced cremations and that Streetwise had been impacted by a fleet review and purchase of their own vehicles.

The Communications and Customer Services Manager referred to household waste and noted that recycling and composting waste was below target which was in line with a national downward trend and said that tonnage collection from blue bins was slightly down on previous years. He said that garden waste was impacted by weather conditions and was currently higher for this quarter. He said the Council was reviewing a refreshed communications and engagement campaign, particularly in light of the Environment Bill.

The Communications and Customer Services Manager said that use of community facilities and income from bookings was lower, in part due to ongoing impacts from increased costs of living and with room bookings at the Arena being impacted by hybrid technology issues and the Council’s internal meetings programme. He noted that the Council had implemented an internal improvement programme and that the Communities Scrutiny Group would be reviewing the use of community facilities at its next meeting.

In relation to Affordable Homes, the Communications and Customer Services Manager said that 283 of a target 300 had been delivered which was positive given the slow-down in delivery of housing developments.

In relation to the percentage of planning applications processed, the Communications and Customer Services Manager said that validation delays were due to a new validation list and the team not being at full capacity and noted that a new technician was now in post which was expected to speed up validations and subsequent application completion rates.

The Communications and Customer Services Manager referred to the Customer Services call answering target performance being impacted by more complex and lengthier calls, particularly in relation to complex cost of living and Council Tax related enquiries.

The Communications and Customer Services Manager noted that reports of fly tipping were lower but that the Council was in a positive position in relation to neighbouring local councils.

The Chair of Governance asked whether the reduction in blue bin waste was impacted by companies reducing their packaging. The Communications and Customer Services Manager said that it reflected a national trend and the increasing importance of reducing waste and packaging, which would also be impacted by the Environment Bill and as such the Council would look at how to best communicate information with residents.

The Chair of Communities asked about grey bin wastage in case the reduction in recycling wastage was due to it being put in grey bins. The Communications and Customer Services Manager confirmed that grey bin wastage had decreased also and said that he could provide information about analysis of grey bin wastage.

Members of the Group referred to fly tipping and asked whether the reduction in reports reflected a reduction in incidents and the Communications and Customer Services Manager said that there were fewer cases than last year and that he would provide more information for the Group. He said that Wise continued to work for the Council and issue fixed penalty notices.

Members of the Group referred to the reduction in use of community facilities and the Communications and Customer Services Manager said that the Council was looking at reasons for this, including identifying any barriers, such as financial or a change in needs from meeting less frequently or using spaces differently. He said that some groups had not been able to restart post covid or had changed how they met and that the Council would look at what groups wanted from facilities in the present day and what could be done to encourage usage.

The Chairman said that community spaces in parishes were often well used and questioned how this reflected on use of larger venues. The Communications and Customer Services Manager said that Council facilities in West Bridgford may be impacted by their proximity to the City and a different resident demographic.

The Chair of Communities asked whether it would be possible to separate between community facility bookings and sports facility bookings and the Communications and Customer Services Manager said that future reporting could separate between them.

It was RESOLVED that the Corporate Overview Group considers:

a)    noted the 2023/24 revenue position and efficiencies identified in Table 1, the variances in Table 2 (and Appendix A);

b)    approved changes to the earmarked reserves as set out at Appendix B along with the carry forwards and appropriations to reserves in Appendix E;

c)    noted the re-profiled position on capital and approves the capital carry forwards outlined in Appendix C and summarised in Appendix F; and

d)    noted the update on the Special Expenses outturn at paragraph 4.20 and in Appendix D

e)    identified exceptions to judge whether further information is required.