Issue - meetings

The Leader’s Portfolio

To consider report FIN/586 of the Head of Corporate Finance, which was referred to the meeting of the Overview and Scrutiny Commission held on 3 October 2022.

RESOLVED

That Cabinet:

a)    Notes the projected outturn for the year 2022/2023 as summarised in this report FIN/586.

b)   Approves the addition of £40,000 to the capital programme, funded from the Tilgate Park Investment Reserve, for a replacement tractor flail as outlined in section 8.7 of this report FIN/586.

Reasons for the Recommendations

To report to Members on the projected outturn for the year compared to the approved budget.

The Leader presented report FIN/586 of the Head of Corporate Finance.  The report set out a summary of the Council’s actual revenue and capital spending for the first quarter to June 2022 together with the main variations from the approved spending levels and impact on future budget.  It was noted there was a variance of £671k in the general fund.  At budget setting, it had assumed a transfer from reserves of £452,000, so there is now projected to be a £1.1m transfer from the general fund reserve at the end of the year. The Cabinet were informed that there had been unprecedented demand for the Council’s homelessness services leading to a projecting of £872,000 overspend.

The Head of Corporate Finance addressed the Cabinet noting that the original report sent to Members had a slight addition error within the appendices, (pages 8, 9 and 10). A correct version of the report had been sent to the Cabinet prior to the meeting. 

Councillor T Belben presented the Overview and Scrutiny Commission’s comments on the report to the Cabinet following consideration of the matter at its meeting on 3 October 2022, which included:

·         The Commission noted that the budget for the 2022/23 pay award had an allowance for 2%, this was likely to be higher leading to a projected overspend was therefore at least £800,000.

·         They were pleased that K2 Crawley continued to move back to pre-pandemic usage and for the additional income projections at Quarter 1.

·         Acknowledgement of the pressures and concerns within Homelessness as the service.

Councillor S. Mullins also spoke as part of the discussion on the report. 

RESOLVED

That the Cabinet:

a)         Notes the projected outturn for the year 2022/2023 as summarised in this report FIN/586.

b)         Approves the addition of £40,000 to the capital programme, funded from the Tilgate Park Investment Reserve, for a replacement tractor flail as outlined in section 8.7 of this report FIN/586.

Reasons for the Recommendations

To report to Members on the projected outturn for the year compared to the approved budget.

Note by the Head of Governance, Performance and People – The amendment and correct version of report FIN/586 has been now be published online replacing the original publish version.

To consider report FIN/586 of the Head of Corporate Finance.

The Commission considered report FIN/586 of the Head of Corporate Finance on the quarter 1 budget monitoring, which set out a summary of the Council’s actual revenue and capital spending for the quarter to June 2022 together with the main variations from the approved spending levels and impact on future budgets.

During the discussion with the Leader of the Council, Head of Corporate Finance and Chief Executive, the following comments were made:

·         Recognition that there was a projected overspend in year, following the impact of the pandemic and due to the cost-of-living crisis.  The situation would be monitored over the next few months and continued to be reported in future monitoring reports.

·         Support that K2 Crawley continued to move back to pre-pandemic usage and for the additional income projections at Quarter 1. 

·         It was noted that the budget for the 2022/23 pay award had an allowance for 2%, the projected overspend was therefore at least £800,000.

·         Acknowledgement of the pressures and concerns within Homelessness as the service continued to see sustained pressures in all forms of temporary accommodation. It was noted that the service proactively sought suitable temporary accommodation (and it was difficult when this did not materialise), in order to minimise out of borough placements and nightly paid accommodation.  In addition, it was anticipated that modular schemes may provide some solutions.

·         Recognition that some of the capital schemes had slipped to future years such as Crawley Growth Programme and Gigabit.

·         Whilst private commercial properties had previously taken the opportunity to convert buildings to accommodation through permitted development this was not a process that would benefit the Council’s assets.

·         Recognition that the Investment and Operational Properties’ underspend related to additional income arising from rent renewals, which included debt provision.

·         Clarification sought and obtained on the cycle paths and cycle improvements fund allocations.

·         Confirmation was provided on the external funding, particularly S106 as identified within the appendices (‘Funded By’ table).

RESOLVED

That the Commission noted the report and requested that the views expressed during the debate, were fed back to the Cabinet through the Commission’s Comment sheet.