Agenda item

(A report of Christine Marshall, Deputy Chief Executive – Corporate Development & Section151)

The Portfolio Holder – Finance presented the Quarter two finance update which provided information on the forecast full year financial performance as at 30 September 2023. Throughout the year quarterly monitoring reports are completed forecasting the expected year end outturn compared to the approved budget.

It was noted that;

• The revenue outturn forecast a deficit position of £511k at the year-end
• Corporate Services were currently forecasting a £65k underspend against its ICT hardware and software budget as a result of improvement to procurement processes and the buying power of the SELCP partnership.
• Housing Benefits had a £393k movement relating to £238k rent allowances, £83k rent rebates and £71k in relation to Housing Benefit subsidy LA error.
• General Fund Assets had a reduced income of £67k relating to Bereavement. Car parking had seen an improvement of £34k, and following the installation of new Parking Machines more improvements to the shortfall were predicted.
• Planning and Strategic Infrastructure were projected a £145k overspend. Planning fee income was down £250k due to wider economic pressures. An announcement had been made on 14 November 2023 with regards to increasing these charges that would impact on the figure and be reflected in Quarter three.
• Investment income continued to over-perform due to better than anticipated interest rates and higher balances than expected.
• At Quarter two a review of budgets had taken place and a forecast of £130k had been provided in relation to court costs for Council Tax which had been omitted at the Budget setting stage.
• The 2023/24 budget included a savings efficiency target of £664k. 
• The revised capital budget at Quarter two was £35.817 million, composed of the 2023/24 budget of £33.330 million, 2022/23 slippage or accelerated spend of £2.385 million and recent net changes to approved budget of £0.102 million.
• The Towns Fund project represented the largest area of spend being £19.442 million and 54% of the total revised capital budget followed by Levelling Up Fund at £11.357 million which represented 32% of the programme.
• The overall expenditure forecast was showing the potential slippage of £12.226 million, however the position could change substantially as projects develop.
• The Council’s cash continues to perform as intended with regards to revenue yields. Capital values were still dropping but had slowed substantially and, with interest levels plateauing it was hoped that some of the capital value would start to return from 2024/25 onwards.

The Cabinet were informed of a delegated decision on 9^th October 2023 taken by the Deputy Chief Executive – Corporate Development and Section 151 Officer, in consultation with the Portfolio Holder – Finance to prematurely repay all of the Public Works Loan Boards (PWLB) borrowing. The early repayment meant £9.032 million of the original £15.449 million had been repaid with a discount of £6.417 million. The discount would result in annual reserve savings of between £569k and £717k a year for the next 10 years. The financial implications of this would be reflected in Quarter 3.

Following questions from Members the Deputy Chief Executive – Corporate & Section 151 Officer confirmed that, should an overspend occur money would be taken from the reserves, similarly if an underspend was to occur the money would be released to the reserved.

Members confirmed they were actively working with their relevant departments to achieve savings where possible.

RESOLVED: That Cabinet;

1. Noted the report.
2. Recommended to Full Council to amend the Capital programme to take into account the changes set out in this report.
3. Noted the Debt Redemption that had been undertaken.