Issue - meetings

To consider a report by the Director of Finance and Corporate Resources presenting details of the Council’s projected financial performance for 2023/24.

Executive Councillor: B Mickelburgh.

The Cabinet has considered and commented upon the revenue financial performance to the end of December 2023 (as detailed in Appendix 1 and summarised in paragraph 3.2 of the submitted report) and considered and commented upon the capital financial performance at the end of December 2023 (as detailed in Appendix 2 and summarised in paragraph 3.3) and the prudential indicators (as detailed in Appendix 3 of the submitted report).

With the aid of a report prepared by the Director of Finance and Corporate Resources (a copy of which is appended in the Minute Book) the Cabinet received a report that provided details of the Council’s projected financial performance for 2023/2024 in regard to the revenue outturn estimated underspend of £1.381m; and the capital outturn estimated underspend/potential rephasing of £15.483m.

By way of background the Executive Councillor for Finance and Resources Councillor B A Mickelburgh reported that the budget and Medium-Term Financial Strategy (MTFS) for 2023/24 approved in February 2023, assumed a net expenditure budget of £24.113m in addition to this £231k of carry forwards have been added to make a current budget for 2023/24 of £24.344m. Furthermore, a gross capital budget of £29.392m had been approved, increased to £33.150m due to additional re-phasing of schemes at the year-end of £2.444m, and funding for housing grant, Ramsey Public Realm and OLSI Pitch Replacements of £1.314m not included in the original budget.  A detailed analysis was also noted of the Q3 forecast outturn as at 31 December 2023 and attached at Appendix 1 for revenue, and Appendix 2 for capital and prudential indicators and Treasury indicators for Q3 are attached as Appendix 3.

As a result of discussions on the report the Cabinet agreed on the crucial role now being played by green finance as a component in realising maintainable growth and that in Q2 green waste had been moved from Corporate Finance to Operations in Q3 as the costs are incurred in this area. Members noted that at the Overview and Scrutiny Panel (Performance and Growth) on 6 March 2024 following a question from Councillor Harvey about what actions were being taken to recover outstanding historical commercial rents owed to the Council, particularly in relation to commercial rents and that following the meeting, the Panel had been appraised that the most significant cause of these historic debts is tenant insolvencies although whilst the work has been complicated by CVAs/IVAs (Company/Individual Voluntary Arrangements) where tenants wished to, negotiations could be entered into to ensure practical rents were achieved whilst remaining commercially viable. The Cabinet noted that in the Q3 Forecast 2023/24 (appendix 2 refers) – Capital Programme currently showed the Community Infrastructure Levy (CIL) with a £409,000 overspend and requested an explanation for the current position and noted the Miscellaneous Debt Update in Section 3.5 and requested details on the debt in relation to CIL.

Accordingly, the Cabinet

RESOLVED

(a)  to consider and comment upon the revenue financial performance to the end of December 2023, as detailed in Appendix 1 and summarised in paragraph 3.2 of the report now submitted;

(b)  to consider and comment upon capital financial performance at the end of December 2023, as detailed in Appendix 2 and summarised in paragraph 3.3 of the report now submitted; and

(c)  to consider and comment upon the prudential and treasury management indicators at the end of December 2023, as detailed in Appendix 3.

The Panel is invited to comment on the Finance Performance Report 2023/24 Quarter 3.

Executive Councillor: B Mickelburgh

By means of a report by the Director of Finance and Corporate Resources, (a copy of which was appended in the Minute Book), the Finance Performance Report 2023/24 Quarter 3 report was presented to the Panel.

Following questions from Councillor Pickering, the Panel were assured that the refurbishment on the Fareham properties was in the snagging stage and due to come in within budget. The Panel were further assured that the vacant properties within the portfolio were not a cause for concern and that this was due to a quiet market rather than an issue with the properties themselves.

In response to a question from Councillor Harvey, the Panel heard that an increase in income at Hinchingbrooke Country Park was due to increase in café sales and events at the site. The team were continuing to explore ways to maximise opportunities at the Park.

Councillor Harvey enquired what actions were being taken to recover outstanding historical rents owed to the Council, particularly in relation to commercial rents following which, the Panel heard that full details would be sought and reported back at a future date.

The Panel were advised, in response to a question from Councillor Harvey, that where tenants wished to, negotiations would be entered into to ensure practical rents were achieved whilst remaining commercially viable.

Councillor Martin expressed concern over the service gap for the Street Cleansing service, the Panel heard that a service contract had been lost in this area and work was ongoing to address the issue.

Following an observation from Councillor Slade about the street scene and state of properties in the Rowley Centre, St Neots, the Panel heard that a paper would be brought to a future meeting which would address the situation.

An observation was made by Councillor Blackwell that there was a discrepancy in the number of properties within the table in section 4.3 of the report. The Panel heard that this data would be checked and the resulting answer communicated back to the Panel.

The Panel were assured, following a further question from Councillor Blackwell, that some of the vacant properties were of benefit to the Council without being let. The Panel were advised that further details around the scenario would be brought to a future meeting of the Panel.

Councillor Martin enquired about the overspend forecast for Disabled Facilities Grant and asked for clarity because the Corporate Performance Report had indicated a backlog of DFGs which might suggest an underspend, the Panel heard that further details would be sought and brought to a future meeting of the Panel.

Following the discussion, it was

RESOLVED

that the comments of the Overview and Scrutiny Panel be passed to Cabinet for their consideration when making a decision upon the recommendations contained within the report.