Agenda item

(A report by Rob Barlow, Chief Executive)

The Portfolio Holder – Finance, Councillor Sandeep Ghosh, presented the Quarter 3 Finance report that set out a summary of the current financial position for the Council at the end of the third quarter of 2024/25 forecasting to the year end for members consideration.

The report provided information on the forecast full year financial performance as at 31^st December 2024 and as detailed within Appendix A for the following areas:

·       The General Fund Revenue Budget;

·       The General Fund Reserves Position;

·       The Capital Programme for 2024/25; and

·       The Treasury Management Performance for the year.

Councillor Ghosh highlighted the following key points:

·       There was a forecasted surplus of £607,000 for the year-end, which was an improvement of £425,000 from Quarter two.

·       Planning fee income was forecasted to underperform by £94,000, representing a 37% reduction in service income. This underperformance was attributed to the current condition of the housing market.

·       The Council's investment income was forecasted to overachieve by £703,000, with a full-year outturn of £2.289 million against the budgeted £1.587 million. This overachievement was driven by higher than anticipated interest rate levels and increased cash balances.

·       Car parking income was forecasted to increase by £94,000 for the whole year, representing a 10% increase over the budgeted income for 2024/25.

·       The Council had achieved 78% of its savings efficiency target, with £656,000 saved out of the £846,000 target for 2024/25. That included both general and IDB savings requirements.

·       The proposed revised capital budget for the general fund was £20 million. Significant progress had been made on various projects, including Rosegarth Square and Mayflower, with a total spend of £9 million as of 31^st December 2024.

·       The Council's cash continued to perform well, with a forecasted achievement of £703,000 in excess of the budget.

·       The recommendation to Full Council in respect of the Capital Programme was amended to refer to Table 5a within Appendix A and not 4b.

Members discussed the report and commented as follows:

·       A question was asked regarding the increased external audit charges and whether the government grant of £45,000 to offset those charges would be an annual provision. Members noted that the charges were annual and governed by the public sector audit authority. The grant had been offered under the previous government, and it was uncertain if it would continue annually.

·       In respect of the financial impact of handing back the Redstone Caravan site management to Lincolnshire County Council, noting a loss of £13,000, it was noted that the decision had been based on an overall evaluation, considering occasional capital costs that the Council would incur if it retained the site.

·       A query was raised regarding the specific budget movement related to staffing costs attributed to the ad finance. The specific details were not currently available, but it was clarified that the item referred to a budget movement, not actual spend.

·       The underperformance in cremation income by £92,000 was queried in respect of whether people were opting for services elsewhere. The underperformance was attributed to the rise of direct cremations, which were less costly than traditional services. The trend was expected to continue.

·       Councillor Callum Butler highlighted the importance of addressing the issues raised and ensuring that the financial performance continues to improve.

·       Councillor Ghosh suggested that the Council might be over-budgeting in certain areas, such as cremation income, and recommended a review to align the budget more closely with actual performance.

·       Councillor Dale Broughton praised the success in increasing car parking income, which had helped offset other areas of underperformance.

·       Councillor Anne Dorrian highlighted the positive impact of the volunteer scheme and the increasing number of volunteers, emphasizing the social value it brought to the community.

The recommendations were moved by Councillor Sandeep Ghosh and seconded by Councillor Callum Butler.

RESOLVED:

1.     That the forecast revenue position of a £627k underspend for 2024/25, as detailed within Table 1, and the need for continued focus on the savings and efficiency programme be noted; and

2.     That Full Council be recommended to amend the Capital Programme, at Appendix A – Table 5a, to take into account the changes set out within the report.

[Councillor Stephen Woodliffe entered the meeting at 6.33p.m., during consideration of the above item.]