Decision details

Quarter 2 monitoring report

Decision Maker: Cabinet

Decision status: Recommendations Approved (subject to call-in)

Is Key decision?: Yes

Is subject to call in?: No

Decisions:

Councillor Gold presented the Quarter two Financial monitoring report.  The report outlines the forecast financial position of the Council at the end of 2022/23 based on the information known at the end of the second quarter, 30th September 2022. The report sets out the position for both revenue and capital and provides an analysis of the variances, both under and overspending.

 

Members discussed the information and, in response to Members’ questions, the following was noted:

 

·         With regards to the progress of the Council’s Capital projects; following formulation and inclusion in the budget process further work is undertaken and more detailed proposals are progressed.  The detailed proposals will take account of external factors that may affect their progression including; inflation/supply chain issues.

·         The Leader gave an assurance that further information in respect of the Capital programme will be shared at a future Cabinet meeting.

·         The proposed savings in relation to the Admin buildings project; the Section 151 Officer reported that staff have now vacated Whittaker Street generating a part year saving; staff will vacate Humphrey House in next financial year, any savings in relation to this will not be realised until the next financial year.

·         Savings predicted in relation to procurement continue to be monitored but may be allocated to departments. Star Procurement have been brought in to undertaken a review of the Council’s current procurement arrangements.

·         There is a £2.5 billion overspend across all local authority areas.

·         Members were notified that a report on the progress of transformation will be a December Cabinet item.

 

Recommendation(s)

1. To note the forecast overspend of £2.554m within the revenue budgets at quarter 2 and the need for Directorates to continue to work with their finance managers to maintain tight budgetary control and to ensure services work within their budgets;

2. To note that this overspend does not reflect the estimated £1.600m additional cost of the pay increase over and above what was already budgeted and set aside within reserves at last year end.

3. To note the position on the Dedicated Schools Grant, Collection Fund and the Housing Revenue Account;

4. To note the underspend of £0.144m on the capital programme;

5. To approve the additions of £0.239m and reductions of £4.596m to the capital programme;

6. To approve re-phasing of the capital programme from 2022/23 into 2023/24 and 2024/25 financial years of £85.225m from the current programme.

 

 

Reasons for recommendation(s)

 

To ensure the Council’s budgetary targets are achieved.

 

Alternative options considered and rejected

 

This report is in accordance with the council’s financial procedure regulations.

Publication date: 18/11/2022

Date of decision: 16/11/2022

Decided at meeting: 16/11/2022 - Cabinet

Accompanying Documents: