Agenda item

(a)       That having considered the Revenue Budget Monitoring 2022/23 (month 9) report, the Committee confirms that there are no specific issues to be raised with Cabinet; and

(b)       That having considered the Capital Programme Monitoring 2022/23 (month 9) report, the Committee confirms that there are no specific matters to be raised with Cabinet.

The Strategic Finance Managers (Corporate Finance) presented the 2022/23 month 9 position for the revenue budget monitoring for the Council Fund and Housing Revenue Account (HRA) and the Capital Programme, prior to consideration by Cabinet.

Revenue Budget Monitoring

On the Council Fund, the projected year-end position - without new actions to reduce cost pressures and/or improve the financial return on efficiency planning and cost control - was an operating deficit of £0.117m.  This would leave a contingency reserve balance of £6.464m at year-end (after the impact of final pay awards) and including £2.432m transferred from the additional Revenue Support allocation received at the end of 2021/22, as reported at month 8.

Significant movements across portfolios from month 8 were summarised along with a carry-forward request for replacement server equipment for schools and a request for funding from the Contingency Reserve to cover costs on a significant legal case within Children’s Services.  Whilst the tracking of in-year risks reported the current position with Council Tax collection levels and pay awards, the impact of increased demand for Out of County Placements and school transport were being monitored closely for the medium term impact.  Emerging pressures such as winter maintenance costs and the potential Waste Recycling Infraction Charge were highlighted, along with projected year-end balances on earmarked reserves.

On the HRA, projected in-year expenditure of £3.208m higher than budget would leave a closing un-earmarked balance of £3.266m, which was above the recommended guidelines on spend.

In response to concerns from Councillor Bill Crease about the projected reduction in school balances at year-end, the Corporate Finance Manager explained that these were based on local knowledge of officers working with schools and could be impacted by late grants, however specific amounts would not be known until closure of the accounts.

The Chairman acknowledged the varying movements contributing to the positive movement of £0.235m from month 8.  In response to questions, officers agreed to respond separately on the movement of short-term care costs from the Regional Integration Fund and the balancing of minor variances shown in the report.

In response to the Chairman’s question on managing the risk around Out of County Placements, the Chief Executive and Councillor Christine Jones explained that investment at Ty Nyth Children’s Assessment Centre and Bromfield Park formed part of a wider strategy to develop in-house provision and would contribute to reducing those pressures.

Capital Programme

The revised programme for 2022/23 was £71.565m taking into account all carry forward sums and savings transferred back to the programme.  Changes during the period were mainly due to the introduction of grant funding streams across portfolios and budget re-profiling.  The projected outturn position totalled £68.505m leaving a £3.060m underspend recommended to be carried forward for the completion of schemes in 2023/24 as detailed.  The update also reflected two additional allocations identified to be funded from within the current ‘headroom’ provision and Health & Safety provision, along with one-off savings to be released back into the programme.  The overall funding position of approved schemes reported a surplus of £4.258m prior to the realisation of additional capital receipts and/or other funding sources.

Councillor Paul Johnson thanked the officers and teams responsible for collating the detailed information.

The recommendations were moved and seconded by Councillors Kevin Rush and Bill Crease.

RESOLVED:

(a)       That having considered the Revenue Budget Monitoring 2022/23 (month 9) report, the Committee confirms that there are no specific matters to be raised with Cabinet; and

(b)       That having considered the Capital Programme Monitoring 2022/23 (month 9) report, the Committee confirms that there are no specific matters to be raised with Cabinet.