Issue - meetings

An analysis of forecast expenditure against the Council’s overall revenue budget of £12.799m as at the end of September 2024 (Month 6) was presented.

A full year revenue underspend of £165k for the Council was forecast, without using corporate contingencies of £1,166k. A balanced outturn was expected with no need to call on general reserves. The report noted there were significant risks around inflation, temporary accommodation costs, planning appeals and audit fees that would continue to be managed. Appendix A to the report provided further details on the forecast underspend by each Committee.

The report confirmed £464k of the £586k savings target was rated achieved or green for delivery. £72k was rated amber and £50k was rated red or unachievable.

In terms of the Capital Programme, with a budget of £29,407k, there was a forecast £850k of net slippage. This was made up of £356k from the General Fund and £494k in the Housing Revenue Account.

The Committee’s revenue budget was forecasting a £71k overspend. This had changed from a £8k underspend in Quarter 1 and mainly related to a reduced salary capitalisation in IT and a one off interim resource in Policy and Communications. There was a £212k underspend on corporate items forecast. In relation to the Committee’s capital budget, which had been set at £2,852k, Officers were forecasting slippage of £74k.

During the debate, Members discussed:

·         whether the forecast was pessimistic or prudent given the level of contingencies and risks the Council was managing.

·         the likelihood of costs for planning appeals to be high, especially given their increasing complexity and frequency.

·         the importance of ensuring lessons from underspends were learnt.

·         ensuring the Council’s financial position was communicated clearly to residents and Parish Councils.

In response, Officers explained:

·         that, where possible, risks had been quantified and the contingencies were expected to be sufficient with no call on the general reserves but, as requested by the Chair, work would continue to understand better the extent of risk, in particular in the Planning area.

·         the general reserves remained modest given the size of the Council’s turnover and the risks of costs from planning appeals.

·         IT capitalisation was based on an assumed work programme with elements funded from both the general fund and the capital programme. The reported variance was as a result of it not being possible to capitalise as much of the work that had been undertaken as anticipated.

R E S O L V E D – that the Revenue and Capital budget forecast positions as at Quarter 2 / M6 (September) 2024/2025 be noted.