Issue - meetings

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

RESOLVED that the:

(1)              forecast year end position is currently for a decrease to the Council’s General Fund balance of £262k against a budgeted increase of £12k is noted;

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

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

Cabinet considered the report of the Cabinet Member for Resources that updated Members on the yearend forecasts, financial pressures on the Council during the Quarter ended 30th September 2024 and performance against certain key financial performance indicators.

The Cabinet Member for Resources drew Members’ attention to the forecast decrease to the Council’s General Fund (2.1(1)).  He advised that £293k had had to be spent on emergency works and surveys and highlighted other issues such as the change to Housing Subsidy (5.7) and disappointing planning income (5.24) outside of the Council’s control.  The Cabinet Member for Resources noted further elements with adverse impact, such as the Tall Ships Festival (5.30), and some with positive impact such as increased interest rates.

The Leader of the Council reminded Members that the report measured performance against the previous administration’s budget.

RESOLVED that the:

(1)              forecast year end position is currently for a decrease to the Council’s General Fund balance of £262k against a budgeted increase of £12k is noted;

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

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

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 September 2024 and performance against certain financial performance indicators.

58.1    Councillor Wilson introduced the report and summarised the key headlines. He highlighted that the forecast year end position was currently for a decrease to the Council’s General Fund balance of £262k, noting that the upcoming budget had been changed to reflect the challenges.

58.2    In response to a query from Councillor A. Chambers regarding the outturn position for Corporate and Funding, Councillor Wilson noted that this position was a favourable one and £600k better than previously forecast.

58.3    Councillor A. Chambers asked for an update on the £10m grant funding for the Fleece Hotel development. Councillor Wilson advised that this information was not contained in the Financial Monitoring Report.

58.4    Councillor A. Chambers referred to the £10k forecast variance in Democratic Services, and asked whether this was down to the allowances for the additional Cabinet Members. Councillor Wilson confirmed that this was not the case and there were several reasons behind this pressure.

58.5    Councillor A. Chambers observed that the Housing and Homelessness element of the portfolio was favourable to budget by £59k and asked whether this was due to an increase in rough sleeping in the city. The Financial Services Manager advised that the positive variance was due to grant funding received by the Council and measures put in place to address previous pressures, such as the acquisition of emergency accommodation.

58.6    In response to an additional query from Councillor A. Chambers regarding the pressures in the Cemeteries and Crematorium Service, Councillor Wilson explained that this was to do with maintenance works which needed to be undertaken in the crematorium in December, as well as a slight reduction in anticipated demand for the service. He reminded Members that current Financial Monitoring report deliberately took a pessimistic view, but it was his hope that the position would improve.

58.7    In response to an additional question from Councillor A. Chambers regarding income from car parks, Councillor Wilson advised that the pressures in this portfolio were caused by surveying and necessary building maintenance work.

58.8    Councillor Pullen referred to the narrative in the report around the Planning portfolio and observed that the portfolio was still forecast to be averse to budget despite the income budget being reduced. He noted that this appeared to be a repeated challenge each year and asked whether this could be looked at in further detail during the next budget setting process. Councillor Wilson expressed his view that the previous budget had been optimistic, and the upcoming budget was being adjusted accordingly. He noted that planning income was also outside of the Council’s control.

58.9    In response to a question from Councillor Conder regarding the Community Infrastructure Levy, the Financial Services Manager confirmed that the narrative in the report conveyed the net income.

58.10  The Chair referred to the narrative in the report around pressures as a result of legal and professional fees surrounding the proposed sale of Gloucestershire Airport and asked for clarification around the current figures. The Financial Services Manager confirmed that legal fees currently  ...  view the full minutes text for item 58