Agenda item

With the aid of a report prepared by the Director of Finance & Corporate Resources (See copy which is appended in the Minute Book) the Cabinet considered a report that provided details of (i)the Council’s projected financial performance for 2023/2024; (ii) Revenue outturn estimated underspend of £1.202m; (iii) Capital outturn estimated underspend/rephasing of £13.617m. The appended document provided details on the Quarter 2 expenditure forecast takes into account those factors affectingexpenditure and income that are known by the end of September 2023.

By way of background, the Executive Councillor for Finance and Resources introduced the report explaining that the net revenue budget for 2023/24 totals £24.344m (including carry forwards of £0.231m), the forecast outturn as at the end of quarter 2 is £22.573m. Including a contribution to reserves of £0.569m this gives a forecast underspend of £1.202m. This is as a result of (large variations);

Corporate Resources underspend £0.9m as a result of; increased interest received, vacant posts, reduced facilities management costs including utilities and business rates. Increased costs due to streaming committee meetings.

Chief Operating Officer underspend £0.1m as a result of; Building Control savings, government grant for supporting Ukrainians, vacant posts in Customer Services (that are now filled). Costs remain for the council as a consequence of shortfall from Housing Benefit payments for homelessness from government (known as subsidy) and increased postage costs due to Royal Mail increases..

Chief Planning Officer underspend £0.1m as a result of: Staff saving due to vacancies, increase in PPA/Pre-application fee income and reduced reliance on contractors (to date).

Strategic Insight and Delivery overspend £0.1m as a result of; Staff vacancies, and savings on utilities at Countryside Services, offset by market and parking income reductions.

Operations underspend £0.2m as a result of; Increased CCTV income, and reduced works required on watercourses, offset by loss of Street Cleansing income.

Capital Forecast

The approved original budget is £29.392m, which included re-phased budget from prior years of £15.898m. At the year end the actual budget rephased was £18.342m, which is £2.444m more rephased than budgeted, in addition funded housing grant of £0.744m has been confirmed from DLUHC, £0.295m funding for Ramsey Public Realm, and £0.275m for One Leisure St Ives Pitch Replacement. The current budget is therefore £33.150m (£29.392m + £2.444m + £1.314m).  The forecast outturn is £19.533m as a result of potential re-phasing to 2024/25 (subject to evaluation during the upcoming MTFS process) of £13.617m.

This is as a result of (Large variations only);

The most significant variations being, in-year underspends(may be approved as rephasings); Future High Streets £8.3m, Market Town Programme £1.4m, Market Town Programme smaller schemes £0.2m, Ramsey Food Hall £1.4m, Rural Prosperity £0.2m, Hinchingbrooke Country Park £2.6m, Vehicles £0.4m, Housing Company £0.2m, Disabled Facilities Grants £0.1m; against overspends; on Fareham office enhancements £0.6m and CIL grants £0.7m (funded from CIL reserve).

Recommendation(s):

Cabinet is

RECOMMENDED

(a)  To consider and comment on the revenue financial performance to the end of September 2023, as detailed in Appendix 1 and summarised in paragraph 3.2.

(b)  To consider and comment on the capital financial performance at the end of September 2023, as detailed in Appendix 2 and summarised in paragraph 3.3.