Issue - meetings

To consider the report of the Cabinet Member for Resources presenting the year-end forecasts, financial pressures on the Council during the Quarter ended 30^th June 2024 and reporting on the performance of the Council against certain key financial performance indicators.

RESOLVED it is noted that:

       (1)               the forecast year end position is currently for a decrease to the Council’s General Fund balance of £67k against a budgeted increase of £12k;

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

       (3)               the current level of Capital expenditure as shown in Appendix 2 of the report.

Cabinet considered the report of the Cabinet Member for Resources that presented the year-end forecasts, financial pressures on the Council during the Quarter ended 30^th June 2024 and reported on the performance of the Council against certain key financial performance indicators.

The Cabinet Member for Resources summarised the report and drew Members’ attention to its consideration by the Overview and Scrutiny Committee (2 September 2024 Minute 17).  He advised that it was important to note that it measured performance against the budget agreed by Council early in the year (22 February 2024) and that being for the first quarter the year-end figures were speculative at this early stage.  The Cabinet Member for Resources reassured Members that he was confident improvements would be made to the state of the finances inherited from the previous administration although it will require hard work and monitoring to keep them in check.

The Leader of the Council contrasted the £79,000 overspend (4.1) with the £1.5m reported to Cabinet for the first quarter last year (11 October 2023 Agenda Item 9).  He commented that although the finances remained precarious and external circumstances uncertain, it was the administration’s intention to keep budgets under tight control so they become balanced later in the year as the best way to improve services for residents.

RESOLVED it is noted that:

       (1)               the forecast year end position is currently for a decrease to the Council’s General Fund balance of £67k against a budgeted increase of £12k;

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

       (3)               the current level of Capital expenditure as shown in Appendix 2 of the report.

To consider the report of the Cabinet Member for Resources presenting the year-end forecasts, financial pressures on the Council during the Quarter ended 30^th June 2024 and reporting on the performance of the Council against certain key financial performance indicators.

17.1    The Cabinet Member for Resources, Councillor Wilson, introduced the report and explained that it summarised the Council’s financial performance during the first quarter of 2024 against the budget approved by Council back in February 2024. He noted that the forecasts tended to be prudent at the start of the financial year.

17.2    Councillor Wilson advised the Committee that the Council continued to face the same key pressures, including high inflation and continued high energy prices. He noted that the local government funding landscape was currently uncertain due to the change in central government after the General Election in July 2024. Councillor Wilson summarised the key pressures and issues to note in each portfolio area as outlined in the report, and highlighted that the Council’s payment performance continued to be commendable.

17.3    Councillor Millard referred to the narrative concerning staff vacancies at 5.5 in the report and asked for further clarification as to the reasons behind the vacancies. She also asked how staff were coping with any additional pressures as a result of vacant roles, and whether the Council was providing any support to Officers. Councillor Wilson confirmed his understanding that there had been delays in recruiting owing to the recruitment freeze, and that any savings would have been taken into account when preparing the report. On the issue of additional workload pressures, Councillor Wilson advised that he would seek clarity from Officers and provide a response in due course.

17.4    In relation to the forecast underspend in the housing portfolio, Councillor Millard asked whether unused resource would be retained in the housing and homelessness portfolio rather than bolstering other areas seeing pressures. Councillor Wilson confirmed that if unspent funds were to be put into a reserve, this was a matter to consider when the next budget was compiled. This said, he confirmed that he would take her comments on board.

17.5    Councillor Millard queried how long the baler machine had been out of operation and how the Council had mitigated any impact on income. The Financial Service Manager advised that the baler machine had been out of operation for 4-6 weeks and was now back in operation following overhaul works. He noted that as a result of the overhaul, the machine would now last for several years and that Officers were forward planning the capital spend into the next budget.

17.6    Referring to the Environment portfolio, Councillor S. Chambers observed that the Council only had one baler. She understood that when the Council entered into contract with Ubico, there were discussions around opportunities to work in synergies and asked whether there was an opportunity to share another partner’s baler. Councillor Wilson confirmed that he would check and provide a full answer in due course, however it was his expectation that authorities had one baler each.

17.7    In respect of the narrative around licensing at 5.17 in the report, Councillor S. Chambers asked whether the Council had put any pressure on central Government to increase the statutory license fees.  ...  view the full minutes text for item 17