Agenda item

Report of the Cabinet Member for Finance and Communities is attached.

Councillor Gold, Cabinet Member for Finance and Communities outlined the forecast financial position of the Council at the end of the first quarter of the 2022/23 financial year based on information known on 30th June 2022. The report sets out the position for both revenue and capital and provides an analysis of the variances, both under and overspending.

Councillor Gold highlighted that as at the end of quarter 1 there is a projected forecast yearend deficit of £1.5 million on the revenue budget and this is before utilisation of the utilities reserve of £1.5 million. The highest areas of overspend is within the One Commissioning Organisation which is £2.5 million, Operations at £1.1 million and Children’s £1 million. These are however offset by an underspend of £3.6 million of which £2.5 million is on borrowing costs due to rephasing.

A member sought clarity on how the quarter 2 outcomes are looking now we are nearing this period. In response, Sam Evans, Section 151 Officer advise that we now have confirmation of the pay award, rising pressures in Children’s Services and we are in negotiations with Yorkshire Purchasing Organisation who we purchase our gas and electricity through. The One Commissioning Organisation pressures are not changing significantly, and the Persona savings are being taken into the next financial year.

A member questioned if financial modelling has taken place against the cost of borrowing, in response Sam Evans did advise that this is currently taking place and the rephasing will be included in the quarter 2 Cabinet report.

A member questioned if it is correct to assume it is cheaper to run 3 Knowsley Place than Bury Town Hall. In response Councillor Gold responded to confirm this is correct but the Town Hall will show the positive effects of the window replacement scheme soon and its important to note we lease 3 Knowsley Place but we own the Town Hall and it is £682,000 per annum and subject to a 3 year review. In addition, it was requested that the costings of the temporary boiler system be provided to the Committee

A member sought assurances on the delivery of savings; it was stated that there is a forecast delivery against the total savings (target of £18.9 million) is £15.46 million. It was asked what is being done to close the gap and ensure the required savings are made. Councillor Gold assured the Committee regular meetings discussing the delivery of savings and holding Executive Directors to account takes place.

Discussions took place regarding the Airport Dividend receipt is now pushed back to 2026/27. Sam Evans, Section 151 Officer advised how interest incurred through the loan borrowed is covered. Discussions are currently taking place regarding the recovery and when the repayment can commence.

It was agreed:

1.    The play area and park strategy to be circulated to members of the Committee

2.    Councillor Jones questions and answers submitted before the meeting will be circulated with the minutes for members to view

3.    Further information on the ‘Streets for all’ allocation to be circulated to members.

4.    Members be provided with costings to the Council of the temporary boiler system currently being used.