Agenda item

The Committee heard from the Business Support Team Leader with the mid-year outturn report for 2021/22, based on the forecast outturn for revenue and capital budgets as at 30 September 2021. With regard to revenue budgets, Members were advised that, as visible by the forecast contribution to reserves for the year of £17,000, it was very close to breaking even at this point. One significant pressure was that, based on last November’s budget announcement of a public sector pay freeze, the subsequent announcement of a pay award had not been budgeted for. Negotiations were ongoing, however the latest employer offer stood at 1.75%. The salary forecast within the report was based on a 1.75% increase for the year, pending the outcome of those negotiations. If a final agreement of 2% was reached, this would result in an additional pressure of around £20,000. The salary forecast also included the 2% vacancy factor of £183,000.

It was highlighted that there were four significant revenue variances which were new when compared to the quarter one report presented to the committee in July. The net cost of the transfer of housing stock to P3 of £27,000, which had been built into the MTFP as an ongoing pressure. Telephony costs for a compliant connection to the voter registration process and the DWP benefits system of £12,000. There was a saving of £20,000 on a corporate contingency budget and the planning pre-application advice income was forecast at £22,000 above budget, based on activity to date.

In relation to covid-19 implications, there was a total of £1.529m to support services with the ongoing implications of covid-19, £1.029m in government support grants and including £0.5m of Council funds which were set aside in reserves as part of the 2021/22 MTFP. It was currently forecast to allocate £789,000 of this to services to offset additional costs incurred and income losses, leaving a balance of £740,000. It was therefore not expected to need to draw down from the reserve at this stage.

In relation to capital, the forecast outturn on capital schemes totalled £8,755m against a budget of £11.331m, including pipeline schemes which were subject to formal approval. The most significant underspend being £2.084m relating to the Trinity Arts Centre improvement projects, where the current scheme had now closed and would be redesigned in line with the national heritage lottery fund bid (NHLF). £2.319m was planned to be re-phased, the most significant being the extra care provision scheme budget of £1.5m which was due to commence in 2022/23 and be finalised in 2024/25. It was highlighted that Members were being asked to approve the capital budget amendments as detailed in 3.2 of the report.

Furthermore, Members were also asked to approve the amendments to the fees and charges schedules proposed at section 2.3.2, for the crematorium, cemeteries and strategic housing. These fees had been included in the fees & charges report as though approved, the report was to be heard later in the meeting, and therefore would require an amendment to that report if any changes were required.

In relation to the use of reserves, Members were asked to approve use of unapplied grants reserve detailed at section 2.4.1 of the report, to release the balance of the council tax hardship and national leisure recovery grant into service.

The Chairman thanked the Business Support Team Leader for her summary of the report and invited questions and comments from the Committee.

A Member of the Committee enquired as to what had caused the new telephony costs pressure, which was explained to be as a result of a reduced budget following a procurement exercise. It was also queried how the decision had been made in relation to the spend of a bequest received by the Council, it was agreed that further details be shared with Members of the Committee.

The lack of budget for a national pay award was queried, as it had been thought these pay award would be included in budget forecasts. It was explained that where there had been a budget for up to 2.5%, this had been taken out following the announcement in November 2020 that there would be a public sector pay freeze. Allowance for future salary increases had been left in the budget and this would continue to be the case.

There was discussion regarding the use of APSE consultancy services in relation to the climate change strategy and this was confirmed to be on an ‘as and when’ basis, which, as members of APSE, allowed the Council to access specialist climate change support not otherwise available within the Council. it allowed access to that level of expertise when necessary.

With no further comments, and having been moved and seconded, it was

            RESOLVED that:

REVENUE

a)    the forecast out-turn position of a £0.017m net contribution to reserves as at 30th September 2021 (see Section 2) relating to business as usual activity be accepted;

b)    the use of Earmarked Reserves (2.4.1) be approved;

c)    the use of Earmarked Reserves during the quarter approved by the Chief Finance Officer using Delegated powers (2.4.2), and the contributions to Earmarked Reserves (2.4.4) be accepted;

d)    the use of Earmarked Reserves during the quarter approved by Prosperous Communities Committee under delegated powers (2.4.3) be accepted;

e)    the amendment to the fees and charges schedules (2.3.2), to be effective immediately and recommend to Council any new Fees and Charges be implemented immediately, be approved.

CAPITAL

f)     the current projected Capital Outturn as detailed in 3.1.1 be accepted;

g)    the Capital Budget amendments as detailed in 3.2 be approved.

TREASURY

h)    the report, the treasury activity and the prudential indicators be accepted..