Issue - meetings

To consider and decide on the recommendations as set out in the associated report. 

RESOLVED –

1.    That at Quarter 2 net expenditure on services year to date was £6,709,000, £320,000 less than budget be noted;

2.    That by year end the Council anticipated net expenditure of £15,757,000 on services, £512.000 over budget, an increase of £212,000 on Quarter 1, be noted;

3.    That by year end the Council anticipated receiving an increase in funding of £750,000 due to additional investment interest. Overall, an improvement to budget of £238,000 to reduce the budget deficit that was to be met from reserves be noted.

REASON FOR DECISION:

To show the actual expenditure on services compared to the revised budget for the period ending 30 September 2022, and the forecast outturn position, highlighting significant variances from the revised annual budget. 

Councillor Christopher Hall, Cabinet Member for Finance and Performance introduced Jane Fineman, Head of Finance, Procurement and Parking who presented the report set out in the agenda.

Discussion and questions from Members included the following:

-       The utility costs were detailed in Appendix E of the report.  The figure of £820k were the costs that were directly paid by the Council.  The £302k was the amount paid by British Land on behalf of the Council for Royal Victoria Place and the Meadow Road car park. 

RESOLVED –

1.    That at Quarter 2 net expenditure on services year to date was £6,709,000, £320,000 less than budget be noted;

2.    That by year end the Council anticipated net expenditure of £15,757,000 on services, £512.000 over budget, an increase of £212,000 on Quarter 1, be noted;

3.    That by year end the Council anticipated receiving an increase in funding of £750,000 due to additional investment interest. Overall, an improvement to budget of £238,000 to reduce the budget deficit that was to be met from reserves be noted.

REASON FOR DECISION:

To show the actual expenditure on services compared to the revised budget for the period ending 30 September 2022, and the forecast outturn position, highlighting significant variances from the revised annual budget. 

To consider and provide a recommendation to Cabinet on the proposals set out in the attached report. 

Jane Fineman, Head of Finance, Procurement and Parking introduced the report set out in the agenda.

Discussion and questions from Members included the following:

-       The Council were carrying a lot of vacancies and recruitment continued to be very challenging.

-       There were many occasions where a vacancy had been advertised on more than one occasion, but had received no applicants.

-       The Council were looking at different options, e.g. restructuring jobs to help try and attract applicants.

-       Details related to business rate collections were not available at the meeting but could be reverted after the meeting.

-       Targets for business rates were difficult to forecast as businesses could choose to settle at different times during the year.  Figures could also be distorted due to the payment of Government Grants.  Appeals were also a factor.

-       The Council’s process for recovery of business rates was robust and would ensure that any monies owed would be recovered.

-       Due to financial pressures the maintenance budget was limited to an amount that was affordable. 

-       The budget dealt with both major and minor maintenance demands e.g. Crescent Road car park, Royal Victoria Place shopping centre refurbishment work.

-       The Asset Management Plan included how the maintenance budget would be used.

-       There was also an option to bid for capital investment for major maintenance requests/requirements.

-       The grant volitivity reserve was created a while ago when the revenue grant was taken away.  The Council started to put away the New Homes Bonus so that if it was ever removed, or if there was a need to move money should the Government change the way the grant money was paid, the volitivity reserve would give the Council the means to do this. 

-       Due to Covid the way in the which the Government gave discounts changed significantly.  The Government gave the Council a lot of money up front (currently about £6.9m) and this was put in the volitivity reserve.  Some of the money had to be returned to Government (March 2023), but some was Council money that would be used to balance the budget. 

RESOLVED -  That the recommendations t Cabinet as set out in the report be supported.