Agenda item

The Committee heard from the Business Support Team Leader who presented the first budget and treasury monitoring report of 2024/25, based on the forecast outturn at the end of May. She acknowledged that whilst it was early in the financial year, the report did highlight known pressures and savings and potential budget risks at this stage.

In relation to revenue budgets, there was a forecast net underspend, of £524,000. The significant variance within that related to employee costs. Salary budgets for 2024/25 included an estimated 3.5% increase. However, pay award negotiations were ongoing, and pending the outcome of those negotiations, Officers were forecasting the outturn at the current pay scales. If the latest employer offer was to be accepted, this would reduce the overall forecast outturn to a £12,000 net underspend, this would be virtually a breakeven position. The cost of fuel was currently forecast to be £53,000 below budget based on estimated fuel prices and consumption, but this was volatile and dependent on fuel prices during the year, which could be difficult to predict. The commercial waste service was reporting a net pressure of £63,000. This was reflective of the Business Plan approved by the Corporate Policy and Resources Committee in March 2024, which included an estimated £73,000 net pressure in 2024/25. The approved Business Plan would be reflected in the Medium Term Financial Plan (MTFP) from 2025/26.

In relation to the capital programme, Members heard there was a net underspend against budget of £4.975m, this variance included:

·         an underspend reported against the capital enhancements to council properties scheme of £40,000 – this was earmarked for repairs to a property but this work had now been completed by the tenant.

·         Disabled Facilities Grant scheme budget was to be increased by £65,000 to reflect additional grant and landlord contributions received.

·         Trinity Arts Centre improvements budget of £5m was proposed to beremoved from the capital programme due to uncertainty around funding of the scheme. If resources were identified to progress the works in the future a report would be brought before committee to reinstate a budget into the capital programme.

·         There were then movements between LUF schemes which did not impact on the overall budget position.

Members were asked to approve these amendments to the capital schemes as detailed in the report at section three.

In response to questions from the Committee, it was explained that the budget movements regarding works at the Trinity Arts Centre were a housekeeping amendment, based on a previous grant application that had not been successful. As part of the Cultural Strategy having been approved, further work would be undertaken to investigate funding options, meaning work at the Trinity Arts Centre would still be prioritised, but the budgets needed to reflect current positions rather than historic information. It was also noted that the business plan was due to be presented to the Leisure Culture Events and Tourism working group, prior to proceeding for approval by the Committee. It was confirmed that the working group was not a decision-making group, and final comments and approval would require committee debate and agreement.

Having been moved, seconded and voted upon, it was unanimously

            RESOLVED that

                        REVENUE

a) the forecast out-turn position of a £0.524m net contribution to reserves as of 31st May 2024 (see Section 2) relating to revenue activity, be accepted; and

b) the use of Earmarked Reserves approved by the Chief Finance Officer using Delegated powers (2.4.1), be accepted; and

c) the contributions to Earmarked Reserves approved by the Chief Finance Officer using Delegated powers (Section 2.4.2), be accepted.

CAPITAL

d) the current projected Capital Outturn position of £31.998m (Section 3), be accepted; and

e) the amendments to the Capital Schemes as detailed in 3.2 be approved.

TREASURY

f) the report, the treasury activity and the prudential indicators (Section 4) be accepted.