Agenda item - Financial and Performance Monitoring Quarter 3 Report

Agenda item

Financial and Performance Monitoring Quarter 3 Report

Minutes:

The Interim Section 151 Officer presented the Financial and Performance Monitoring Quarter 3 Report for Members’ consideration.

 

Cabinet was informed that, as at Quarter 1 of 2022/23, the budget included £478k of organisational efficiency targets that had not been allocated to services. This target was offset by forecast underspends due to vacancies and had been allocated across the various service areas.

 

The report also outlined that, as at Quarter 3, the current forecast was an overspend of approximately £902k against a revenue budget of £12.1m. Members were informed that this was an increase of £560k over the Quarter 2 forecast overspend of £342k.

 

Cabinet was informed that there was a significant change across all budgets between Quarter 2 and Quarter 3 as a result of the £1,925 staff pay award. It was reported that the pay award had been agreed after the Quarter 2 monitoring had been carried out and staff had received the award in December 2022. In addition to this, detailed information regarding budget variances had been included within the report.

 

Members were advised that the in-year budget forecast reflected within this report provided the best information available at the present time and that the Council’s financial position would continue to be reviewed.

 

The Interim Section 151 Officer explained that at a meeting of the Corporate Management Team (CMT), earlier that day, the timeline for closure of the Accounts for the 2022-2023 financial year had been discussed. It was anticipated that a ‘soft close’ of the Accounts would take place in April 2023 and the draft outturn report would be available in June 2023. Financial training had also been implemented for key staff members.

 

Cabinet was reminded that a Capital Programme of £2.4m was approved in the budget for 2022/23 in March 2022. It was reported that the Capital Programme had been fully reviewed as part of the Medium Term Financial Plan (MTFP) using actual data as at the end of December 2022. Some of the schemes included in the Capital Programme agreed in March 2022 had already been partially delivered in the 2022-2023 financial year. In December 2022 it had been agreed as part of the MTFP that sums not spent on Capital Programme projects in 2022/23 (and 2021/22 by default if schemes originated earlier than 2022/23 as sums could be carried forward through the previous year’s final MTFP Report) would be carried forward into 2023/4. Detailed information in respect of the Capital Budgets over the medium-term period had been included in the report for Members’ consideration.

 

Members were advised that included in the budget for 2022/23 was £1.8m of Levelling Up Funding and £340k of UK Shared Prosperity Funding.

 

Overall spend at Quarter 3, was reported at £7.2m against the overall 2022/23 capital budget totalling £8.1m. There was also £11.8m carried forward from previous years which was mainly due to the Burcot Housing development.

 

During consideration of this report, the amount in reserves was highlighted and it was noted that the outlook was more favourable than anticipated with an extra £350k to £400k available.

 

Members were presented with information regarding the Council Tax Support Fund Policy 2023/24. The Council was keen to support all eligible taxpayers within its area and, as such, would implement the scheme strictly in accordance with Central Government Guidelines. This would result in a reduction of up to £25 to the Council Tax Account of taxpayers who were in receipt of a Council Tax reduction on 1st April 2023. 

 

In terms of administering the Government’s Energy Bill Supports Schemes, it was reported that the Council were distributing £95k in the Alternative Fuel Payment Scheme and £570k for the Energy Bill Support Scheme Alternative Funding.

 

At the time of the meeting, there had been no announcements regarding New Burdens funding available in order to administer these schemes. Therefore, it was prudent to plan for little or no funding being made available and, as a result of this, a recommendation had been included within the report requesting £15k to support the administration of these schemes.

 

Following the presentation of the report, Members queried what the possible impacts might be from the Chancellor’s budget announcements, made earlier in the day. Officers noted that there had not been much time prior to the meeting to fully examine what the impacts would be. However, it seemed that the main announcement was in respect of nursery childcare. Although nursery provision was not a function provided by the Council, the proposed schemes, which would be implemented by 2025, would likely impact on its workforce.

 

In respect of the amount of Utilities Reserves, some Members questioned whether there would be the need for such a large amount set aside for this purpose. It was explained that although it seemed likely that inflation would fall by the end of the year, any Utilities Reserves not used might have to be re-allocated and used should any further staff pay awards be made in the future.

 

RESOLVED that:

 

1)          The current financial position in relation to Revenue and Capital Budgets for the period April to December 2022 be noted;

 

2)          The Quarter 3 Performance data for the Period October to December 2022 be noted;

 

3)          The updated Bromsgrove District Council - Council Tax Support Fund Policy 2023-24 be approved; and

 

4)          £15k be approved to be released from General Fund Reserves to administer the Energy Fund Support Schemes if the Government did not Grant New Burdens Funding to cover these costs.

 

Supporting documents: