Agenda item

Quarter 3 2023/24 Budget Monitoring

Minutes:

An analysis of forecast expenditure against the Council’s overall revenue budget of £11,935k as at the end of December 2023 (Month 9) was presented.

A £521k revenue overspend was forecast, split between the policy committees and corporate items. A balanced outturn (without the need to draw from general reserves) was still anticipated due to corporate contingencies of £721k. While the final quarter was being carefully managed to deliver the best possible year-end position, risks remained regarding costs associated with inflation, temporary accommodation and planning appeals.

The forecast variance was detailed as follows:

· Community Services: £85k underspend

· Housing (General Fund): £26k overspend

· Planning Policy: £533k overspend

· Strategy & Resources: £6k underspend

· corporate items: £53k overspend

The Planning Policy Committee was forecasting a £71k use of Planning Reserves. i.e.:

· £69k from the Planning Policy & Local Plan Earmarked Reserve to fund the salaries overspend associated with a full year use of interims and seconded officers to manage the Planning Policy team function; and

· £2k from the Neighbourhood Plan Reserve to fund the overspend associated with the Tatsfield Neighbourhood Plan.

The budget for corporate items had increased by £85k to distribute a savings target and align management budgets following the organisational restructure in 2023. Virements of the £85k were recommended as follows:

· £45k to Community Services – rationalisation of management across Operational Services and Environmental Services.

· £40k to Strategy & Resources – rationalisation of management across services in the Resources Directorate.

The capital programme was forecasting £93k of net slippage, comprising £941k General Fund and CIL schemes, offset by an acceleration of £847k expenditure on Housing General Fund items.

Regarding the salary overspend due to the on-going engagement of contractors and seconded officers, concerns were expressed at the implications of failing to attract permanent staff, especially for certain senior positions. In response to the debate, the Chief Executive undertook to submit a report to the Committee’s 27th June 2024 meeting to inform Members about the Council’s recruitment processes and measures being pursued to create a more stable, in-house workforce, especially for the Planning Policy team.

The Director of Resources responded to questions about the extent to which the cost of contract staff was offset by savings associated with other vacant posts not being filled. In doing so, he explained that committee budgets (with the exception of Planning Policy) incorporated a 4% staff vacancy factor. However, this did not represent a target and managers were expected to seek to fill vacancies as quickly as possible.

Actions	Responsible Person	Deadline
To identify and implement actions at the earliest opportunity to improve staff retention and recruitment (including via consultation with the Member Reference Group and Planning Policy Working Group) and to submit an associated report to the Strategy & Resources Committee on 27th June 2024 to include: · ‘issues and challenges’; · benchmarking against other Authorities if possible; and · progress of the actions referred to above. Officers to provide an interim update at MRG prior to Full Council. (For the Chair to deliver as a verbal update at Full Council upon moving the reception of the minutes of the meeting.)	David Ford Mark Hak Sanders	Work to commence forthwith, culminating in a report to the 27th June 2024 meeting of the Committee, to be published on 19th June 2024. 17^th April 2024
To explain how the Council generates a ‘scrap metal income’ (referred to in the revenue commentary for the Community Services Committee).	Mark Hak Sanders	15^th April 2024

Actions

Responsible Person

Deadline

To identify and implement actions at the earliest opportunity to improve staff retention and recruitment (including via consultation with the Member Reference Group and Planning Policy Working Group) and to submit an associated report to the Strategy & Resources Committee on 27th June 2024 to include:

· ‘issues and challenges’;

· benchmarking against other Authorities if possible; and

· progress of the actions referred to above.

Officers to provide an interim update at MRG prior to Full Council. (For the Chair to deliver as a verbal update at Full Council upon moving the reception of the minutes of the meeting.)

David Ford

Mark Hak Sanders

Work to commence forthwith, culminating in a report to the 27th June 2024 meeting of the Committee, to be published on 19th June 2024.

17^th April 2024

To explain how the Council generates a ‘scrap metal income’ (referred to in the revenue commentary for the Community Services Committee).

Mark Hak Sanders

15^th April 2024

R E S O L V E D – that:

A. the forecast revenue and capital budget position as at Quarter 3 / Month 9 (December) 2023 be noted; and

B. budget virements totalling £85k between the Community Services Committee, Strategy & Resources Committee and Corporate Items to realign budgets to the current management structure, as set out in Paragraph 17 of the report (i.e. £45k to Community Services and £40k to Strategy & Resources) be approved.

Supporting documents: