Issue - meetings

To set out the current financial position for the Council at the end of the third quarter of 2023/24 (report of the Deputy Chief Executive – Corporate (S151) enclosed).

Consideration was given to the report of the Deputy Chief Executive – Corporate (S151 Officer) which set out the current financial position for the Council at the end of the third quarter of 2023/24.

The Portfolio Holder for Finance, Commercialisation, UKSPF and Levelling Up presented the report.

This year continued to be challenging with high inflation impacting on contract uplifts, power, pay and fuel. Pressures within homelessness continued to be an area of concern, and market downturn generally as the economy reacted to high interest rates and cost of living increase impacts fed through. The impact of the pay award had now been included in the outturn forecast.

Revenue Outturn

The revenue outturn forecasted a deficit position of £340,000 at the year-end (Table 1 in Appendix A provided the detail).

The following issues were raised for the Cabinet’s attention:

·       The largest change since Q1 was within the Finance area of the budget. A £426,000 movement had taken place in respect of Finance, this related mainly to £186,000 rent allowances, and £80,000 rent rebates as a result of not being able to reclaim full subsidy for Homelessness cases in particular Bed and Breakfast. The Portfolio Holder for this area had been supporting the officer team to investigate opportunities for minimising and mitigating this impact.  These movements could be subject to further change at the end of the financial year. In addition, there has been some duplication of income streams that were previously separately funded, totalling £98,000, that had now been adjusted for. Plus, there has been an increase in external audit fees - this was an increase being seen across all audit areas.

·       In relation to General Fund Assets, car parking income was not performing as well as expected. However, with changes to working practices in the service and the procurement of new car parking machines, improvement going forward was expected. Work was currently being undertaken to look at Garage sites and their income generally and new tenants for Priory Road were being investigated.  The overspends were largely offset by an underspend in Programmed Building Maintenance.

·       In Leisure and Culture, there was a pressure from the loss of a tenant at the South Holland Centre and again the service was looking at options for addressing this budget impact.

·       With regards to Neighbourhoods, there had been additional pressures from Agency Staff and the impact of the pay award - this has been partly offset by unbudgeted income. The service was continuing to look at options for managing Agency Staff pressures.

·       With regards to Planning, members were reminded of a recent increase in fees and charges. This income stream was always an area that struggled during an economic downturn and would continue to be monitored closely.

·       Homelessness continued to be an area of significant focus and attention.

·       On a positive, Investment Income continued to over-perform due to better than anticipated interest rates.

·       Adjustments for Minimum Revenue Provision relating to vehicles had been made.

The 2023/24 budget included a savings efficiency target of £887,000  ...  view the full minutes text for item 71