Agenda item

Report of the Director – Finance and Corporate Services

Finance Monitoring

The Senior Finance Business Partner presented the Q2 Financial Monitoring report for 2024/25 which informed the Group that the financial climate was beginning to show some signs of improvement, however the recent high inflation has impacted on cost pressures for the Council’s budget.

The Senior Finance Business Partner advised the Group that there were predicted net revenue efficiencies and significant variances as highlighted at table 1 and table 2 in the covering report. These represent variances against budgeted Net Service Expenditure, which is proposed to be earmarked for additional cost pressures and financial challenges as discussed in the report.

The Group were advised of an underspend of the original Capital Programme and the rephasing of some of the 2024/25 schemes into 2025/26. The Senior Finance Business Partner Explained that the remaining underspend was due to no site being identified for a traveller’s site acquisition and some of this being released back into reservices and reallocated towards Carbon Offsetting. The Group also noted there had also been savings around Rushcliffe Oaks Crematorium and Bingham Leisure Centre.

The Senior Finance Business Parter highlighted that the Disabled Facilities Grants (DFG’s) budgets were fully committed and that the Council recognises the need to support dome of the most vulnerable in the community, adding that following on from the discussions at the recent joint Communities and Growth and Development Scrutiny Group meeting it is proposed that £200,000 be committed to DFG’s from the in-year budget efficiencies in the short term.

The Group noted that the current projected monitoring means that any borrowing requirement can be met from internal resources with no need for external borrowing in this financial year.

In concluding the Senior Finance Business Partner informed the Group that the Council’s revenue position remains relatively healthy largely due to higher interest returns as a result of interest rates remaining higher for longer, whilst emphasising this position can quickly change, as pressures on budgets and challenges around the Council’s environmental objectives and economic growth objectives increase. The Council continues to keep a tight control over its expenditure, identifies changing income streams, maintains progress against its Transformation Strategy and retains a good reserves position to help manage risk.

Councillor Plant commented on the traveller’s site, raising concerns that this has moved to a future financial year and asked whether it was a statutory requirement to provide adequate traveller sites and what can be done to achieve this. The Senior Finance Business Partner explained that the Council along with an agent is actively looking for suitable sites to acquire. The Director for Finance and Corporate Services added that the Council, as part of its local plan provision, does have to provide its quota in respect of numbers. An update would be provided to the Group. Councillor Edyvean highlighted that landowners are not interested in providing such sites making it challenging for the Council to acquire land for this purpose, he added that there is provision for traveller pitches at the Fairham development which is progressing well.

Comments were made around the Council acquiring land for carbon offsetting and whether this was in accordance with the Council’s Corporate Strategy. Questions were raised about increasing biodiversity on land already owned by the Council rather than having to acquire land for the purpose of carbon offsetting, how will this effect planning applications and the increased housing development at the strategic sites the Council has committed to and whether Carbon offsetting is a government policy. Members of the Group asked whether Councillors would be consulted and allowed to comment on the Council’s Carbon Offsetting strategy and objectives. The Director for Finance and Corporate Services advised that a report went to Cabinet in May with no comment from other Councillors and provision for acquiring the land had been factored into the budget as presented to this Group in the budget update and being presented to December Cabinet. There is clear transparency and accountability on this issue enhanced further by reports to Scrutiny. The annual Carbon Management Review in April at Communities Scrutiny Group is such an example.

The Group commented on the Disabled Facility Grants, praising finance officers for allocating an additional £200,000 for this service. However, Councillor Plant asked a specific question relating to slippage and delays in work being completed, she commented on the delay in funding and stated if this had been applied earlier in the year more residents would have benefited from it sooner, adding why was the process not work more efficiently thus leaving residents waiting a long time before they get the support they need. The Senior Finance Business Partner explained that in the first instance any discretionary funding that had been allocated is for work that has had the scoping for and there is no further discretionary funding other than for those already in the pipeline. The proposed extra £200,000 from the in-year budget efficiencies is to support the mandatory funding in the short term and would be carried forward to 2025/26. However, it was noted that a more affordable and sustainable longer term funding solution is required as both demand and cost for the service rise and this requires changes at both County and national level in terms of the funding formula.

Performance Monitoring

The Communications and Customer Services Manager presented the Performance Monitoring Scorecards paying regard to the Council’s Corporate Strategy 2024-27. This is the second report of the new Strategy and performance will be monitored by theme. The full corporate scorecard was provided in appendix F circulated with the agenda. 

The Communications and Customer Services Manager advised that the Council was still experiencing high levels of demand for some of its services. However, performance was stable and above target in general.

The Group were guided through the performance indicators and in particular those that had not met their target.

With regards to Environment three of the seven indicators under this theme had not met their target. These included:

Cumulative number of fly tipping cases (against cumulative monthly comparison for last year) - The Council and the Contractors WISE continue to proactively address fly-tipping with fixed penalty notices and education and publicity to residents to combat the rise.

Percentage of household waste sent for reuse, recycling and composting - The Council has recently introduced a new Wast Electrical and Electronic Equipment (WEEE) collection service for small electrical items. However, the bigger simpler recycling changes for both glass (late 2025) and food (late 2027) should see a significant uplift in the Council’s recycling percentages.

Percentage recycling contamination rate - The Council will continue to monitor and support residents and focus on the hard-to-reach communities and communal bin areas which often lead to increased contamination, this includes social media campaigns and working with collection crews.

With regards to the Quality-of-Life performance indicators there was only on exception as follows:

Percentage usage of community facilities - Usage for Q2 is 40.4%. Promotion of venues continues via social media and actively contacting new and existing customers. Staff training has also been increased to help transfer enquiries into bookings which is ongoing.

With regards to Sustainable Growth there were no exceptions.

With regards to Efficient Services this was discussed under the previous item, Customer Feedback Annual Report.

The Chairman commented on the recycling of small electrical items stating this had been welcomed by residents and has clearly been a great success in its first few weeks.

With regards to the Council’s community facilities the Chairman commented on the Council’s engagement with younger residents and perhaps researching what other Council’s offer. The Chairman also commented on youth groups being incredibly difficult to attract as they are often run by volunteers. The Communications and Customer Services Manager explained that this may be due to the Council owned community facilities being mainly in West Bridgford and perhaps close to what the Nottingham City has to offer.

Councillor Plant informed the Group that the Communities Scrutiny Group had received a comprehensive report on the Council’s community facilities, including a programme of refurbishments and enhancements at some of the Council’s community buildings and the new booking system. In addition, Councillor Plant explained that bookings may not be as vibrant as they were pre-covid, but with this additional programme of work and officer and community engagement there are lots of possibilities going forward.

It was RESOLVED that the Corporate Overview Group scrutinised:

a)    The expected revenue budget efficiency for the year of £1.786m and proposals to earmark this for cost pressures given (paragraph 4.6 and table 2)

b)    The projected capital budget efficiencies of £3.598m including reprofiling of provisions totalling £1.435m (paragraph 4.9 and table 3)

c)     The proposed removal of £1m from the capital programme for the travellers site acquisition and £1.5m to be added in relation to carbon offsetting land acquisition for the 2024/25 programme going forward (paragraph 4.10)

d)    The expected largely balanced outturn position for special expenses (paragraph 4.7)

e)    Exceptions to judge whether further information was required.