Issue - meetings

To consider the report of the Cabinet Member for Performance and Resources presenting the Council’s current financial position against the agreed budgets for the 2023/24 financial year, performance of the Council against certain key financial performance indicators, year-end forecasts, and the financial pressures on the Council during the 3^rd quarter ended 31 December 2023.

RESOLVED that:

(1)       it is noted that the forecast year end position is currently for a decrease to the Council’s General Fund balance of £683k against a budgeted decrease of £104k;

(2)       the details of specific budgetary issues identified by officers and the actions being taken to address those issues are noted;

(3)       the current level of Capital expenditure as shown in Appendix 1 of the report is noted.

Cabinet considered the report of the Cabinet Member for Performance and Resources that presented the Council’s current financial position against the agreed budgets for the 2023/24 financial year, performance of the Council against certain key financial performance indicators, year-end forecasts, and the financial pressures on the Council during the 3^rd quarter ended 31^st December 2023.

The Cabinet Member for Performance and Resources noted that the General Fund Balance had improved by £394 since the 2^nd quarter report (Cabinet 6^th December 2023 Agenda Item 11).  She listed some of the major pressures on the budgets (4.4) and drew attention to the £400k business rates refund recorded as a corporate receipt (5.4).  The Cabinet Member for Performance and Resources highlighted the improved forecast within her own portfolio (5.4-10).

The Cabinet Member for Environment commented that the position in his portfolio (5.18-20) was better than anticipated, the adverse forecast due to inflationary and wages pressures from the current economic climate.  The Cabinet Member for Planning and Housing Strategy noted that the significant overspend in her portfolio had improved since the last report (5.15).  She reassured Members that the Housing Teams were working extremely hard to ensure that residents saw no slip in standards for which she thanked them.  The Cabinet Member for Planning and Housing Strategy further advised Members that the digitalisation of the planning system will produce efficiencies in future.

The Cabinet Member for Culture and Leisure acknowledged the negative impact the unfortunate issue with the leisure service had had (5.14).  He however anticipated that profits would be made next year, especially with Blackfriars Priory and the Guildhall, and the position would be much better.  The Cabinet Member for Communities and Neighbourhoods advised that the Communities Team continues to rise over and above challenges to support residents every step of the way amid the cost-of-living crisis.  He hoped that the general situation would get better for the sake of the people relying on the Council.

RESOLVED that:

(1)       it is noted that the forecast year end position is currently for a decrease to the Council’s General Fund balance of £683k against a budgeted decrease of £104k;

(2)       the details of specific budgetary issues identified by officers and the actions being taken to address those issues are noted;

(3)       the current level of Capital expenditure as shown in Appendix 1 of the report is noted.

To consider the report of the Cabinet Member for Performance and Resources presenting the Council’s current financial position against the agreed budgets for the 2023/24 financial year, performance of the Council against certain key financial performance indicators, year-end forecasts, and the financial pressures on the Council during the 3^rd Quarter ended 31^st December 2023.

TO FOLLOW.

108.1  The Cabinet Member for Performance and Resources, Councillor Norman, introduced the report and provided an overview of the main headlines. She advised Members that the forecast year end position was currently a decrease to the Council’s General Fund Balance of £683k against a budgeted decrease of £104k, which was improvement on the Q2 forecast deficit.

108.2  The Chair stated that he was pleased to note that the Council had received a £400k windfall of business rates refunds following a review of the application of business rates to museums by the Valuation Office. In response to his request for further information, the Financial Services Manager stated that this was due to a longstanding national challenge  against the Valuation Office which had been ongoing since 2011. He confirmed that the Valuation Office had this year concluded its review with a  decision that museums should not be rateable which had resulted in a 12-year backdated rebate.

108.3  The Chair referred to 5.5 in the report and the narrative regarding the South West Regional Development Agency (SWRDA) assets. He asked for clarification as to what properties were still in Council ownership. Councillor Norman confirmed that Southgate Moorings Car Park was still in ownership, and that income received from this car park was reserved for regeneration purposes.

108.4  Councillor Wilson noted that the shortfalls in the in the Q3 Financial Monitoring Report and Money Plan recently considered by Council appeared to be different, with a forecast deficit of £349k in the Money Plan and a predicted deficit in the Q3 Financial Monitoring Report of £683k. He asked which document was the most up to date. The Head of Finance and Resources confirmed that both reports should be seen in parallel, with the Financial Monitoring Report providing retrospective figures and the Money Plan looking forward.

108.5  Councillor Wilson asked whether this suggested that the financial situation had deteriorated by £334k, or whether the deficits were not comparable. The Head of Finance and Resources confirmed that the figures were comparable, and that the Council was still expecting the deficit to continue to reduce towards the outturn of the financial year.

108.6  In response to a further question from Councillor Wilson as to whether the forecast deficit in the Money Plan papers was too optimistic, the Head of Finance and Resources confirmed that in his view, the Council was not being too optimistic and that he expected the figures to align more closely in the remaining financial quarter. Councillor Norman further noted that an improved trend had been seen from throughout each Quarterly Financial Monitoring Report and that in previous years, the Council had seen improvements in the final outturn.

108.7  Councillor Pullen referred to the £130k reduction in expected income from Longsmith Street Car Park due to its continued closure, and asked for an update on the current position. He also asked for clarification as to the expected costs needed to reopen the car park. Councillor Norman confirmed that she was still awaiting the final report  ...  view the full minutes text for item 108