Agenda item

The Committee considered a report which summarised the projected outturn position for the Council’s General Fund (GF) revenue account and Housing Revenue Account, based on the latest financial data to January 2023.

There was a projected net overspend on the General Fund revenue account of £3.2million resulting primarily from utility price inflation and the payroll budget correction. Due to the relatively short-term inflation pressures and an establishment budget adjustment, it was more appropriate to resolve the deficit through the use of revenue reserve rather than putting additional pressure on the already stressed service delivery capacity by cutting back on expenditure to save money.

The surplus on the Housing Revenue Account would enable a projected transfer of £7.1 million to the new build reserve and meet the forecasted £2.5 million to the reserve for future capital at year-end. 

Progress against significant capital projects on the approved programme as outlined in section 7 of the report was underway.  The Committee noted that the Council was expected to spend £39 million on its capital schemes by the end of the financial year. 

During the debate, the Committee made the following comments:

·       Concerns over the accuracy of some of the information in the table showing the Approved Capital Programme (e.g. Scheme ED27 – North Street Development)

·       Request for clarification as to whether the Council would be entitled to funding announced by the Government in the Budget for supporting swimming pools.

·       In response to a request for clarification as to the nature of the correction to the Town Centre Management budget in the table on Fees and charges budget variances, the Executive Head of Finance confirmed that this was merely a budget income correction.

·       In relation to the variances to budget in Appendices 1A (salaries) and 1B (non- staff expenditure), clarification was sought as to why waste and refuse appeared as a considerable overspend in both areas, what was being done to address it, and whether it would impact adversely on the service.  The Executive Head of Finance confirmed in respect of waste that this was how the services had operated up until now, but that changes were being put in place that would set budgets to correctly reflect the true cost of operating those services. No assurance could be given at this stage that there would be no adverse impact on the service.  The Committee was reminded that £3.2m would need to be found in 2023-24 and that the Council in July would be asked to consider options as to how that deficit could be addressed. The Medium-Term Financial Plan had also identified the need to find a further £8m in the following financial year, and £6m in the financial year after that.

Having considered the report, the Committee

RESOLVED: That the Council’s financial forecast outturn for the financial year 2022-23 be noted, together with the comments and observations referred to above.

Reason:

To allow the Committee to undertake its role in relation to scrutinising the Council’s finances.