Agenda item

The Deputy Chief Executive and Section 151 Officer presented the Revenue and Performance Monitoring Report for the first quarter of the 2024/25 financial year.

The report included a table detailing anticipated overspends by the end of the financial year based on figures available for the first quarter.  Officers were anticipating an overspend of £102,000 by the end of the financial year.  The main pressures on the budget were costs associated with upgrading the Council’s vehicle fleet and the potential for the staff pay award to be higher than the 4 per cent rate that had been included in the budget.

The Council had spent £1.9 million of the authority’s Capital Programme, primarily on Levelling Up projects.  Earmarked reserves were at a level of £10 million.  The authority was not engaged in short-term borrowing.

Reference was made to one of the resolutions detailed in the report concerning proposals for a new national forest bid.  A report on this subject had originally been due to be considered by Cabinet in September 2024.  However, following the general election, the plans at a national level for the new national forest bid process had changed and therefore the report had had to be postponed.  New guidance had been issued by the Government on this subject on 9^th September 2024 and the implications were in the process of being reviewed.  The Council had been planning to issue a bid in partnership with the National Trust and was receiving research assistance from Birmingham University, in terms of air quality monitoring, which it was hoped would have a positive impact on the likely success of the bid.  Further consideration needed to be given to issues relating to liabilities, particularly as the Government’s new plans involved the Forest Trust allocating funding to successful bidders.  Bids needed to be submitted by 27^th October 2024 and Members would be consulted prior to this point.  As part of this process, the Overview and Scrutiny Board had asked to be kept informed and for scrutiny Members to receive an update on the subject.

There were a number of positive aspects within the budget that were reported for Members’ consideration:

·             Income had been agreed with and received from Bromsgrove District Housing Trust (BDHT) for the sale of a number of properties at the Burcot Lane site.

·             A number of other properties at Burcot Lane had been sold privately, resulting in additional income for the Council.

·             The Council was owed an estimated £4 million from VAT receipts from the Government from 2021/22 onwards.  This was being followed up with the Council’s VAT Advisors and HMRC.

In terms of performance data, there had been an increase in business grants and a slight decrease in reports of homelessness since the end of the previous financial year.  Whilst there continued to be staff turnover, this was at half the national average level, which was positive.  Council Tax collection rates were slightly under target, but Members were asked to note that they were at a higher level than usual for this stage in the financial year.

Following presentation of the report, Members raised a number points during the debate:

·             The number of Councils in the country that were considered to be debt free.  Officers undertook to provide an answer in respect of this matter, based on CIPFA information, after the meeting.

·             The national forest bid and the fact that this would entail both tree and hedgerow planting.

·             The locations in which trees and hedgerows in a national forest in the District could be planted, given that the Council did not own much land.  Clarification was provided that this project would involve working in partnership, including with the National Trust, and focused on the benefits arising to health and wellbeing.

·             The potential limitations, in planning terms, of developing houses on land that had been designated as national forest.

·             The location of the CCTV cameras that were being used by Birmingham University to monitor air quality in the District as part of the national forest project.  Officers undertook to provide further information to Members on this subject after the meeting.

·             The role of the Eight Hills Project in leading up to the work on the national forest bid.

·             The benefits arising from the national forest bid to local companies, particularly in respect of carbon credits.

·             The declining homelessness levels that had been reported for the first quarter of the financial year and whether Government changes to rules in respect of no fault evictions might impact on homelessness rates.

·             The financial costs to the Council arising from homelessness cases.  Officers clarified that BDHT provided accommodation in the District but there could be financial costs to the Council arising from any future increase in use of bed and breakfast accommodation.

·             The timeliness of the reporting of finance and performance data to Cabinet and potential improvements that would be made to this as a consequence of changes to systems used by the Council.

RESOLVED that

1)          The current Revenue overspend position of £103,000 and actions the Council are taking to mitigate this position be noted.

2)          The current Capital spending of £1.92 million against a budget of £7.07 million be noted.

3)          The balance sheet monitoring position be noted, including the Treasury position.

4)          The updated procurements position set out in the appendix be noted, with any new items over £200,000 to be included on the forward plan.

5)          The Quarter 1 Performance data for the Period April to June 2024 be noted.

6)          The proposed process for the approval of the new “National Forest” bid be noted.