Issue - meetings

The Leader’s Portfolio

To consider report FIN/633 of the Head of Corporate Finance, which was referred to the meeting of the Overview and Scrutiny Commission on 25 September 2023.

RESOLVED

That the Cabinet:

a)     Agrees to note the projected outturn for the year 2023/2024 as summarised in report FIN/633.

b)     Approves a supplementary capital estimate of £70,000 required for data migration to the new Benefits Online and Document Management System this will be funded from the Welfare Reform Reserve. (para 8.7 of report FIN/633).

c)      Approves a supplementary capital estimate of £169,100 for the repair of the Pit Lift at the Hawth Theatre funded by £120,300 from the revenue programme maintenance budget and £48,800 from capital receipt. (para 8.8 of report FIN/633).

That Full Council be asked to:

d)     Approve the addition to the Capital Programme of £1,052,466 for Disabled Facility Grants funded from the Better Care Fund. (para 8.4 of report FIN/633).

e)     Approve a supplementary capital estimate of £6,000,000 for HRA acquisitions of land or dwellings to be funded from 1-4-1 receipts of £2,400,000 and £3,600,000 of borrowing. (para 8.9 of report FIN/633).

f)       Approve the addition to the HRA Programme Maintenance budget of £6,792,086, this will be funded from SHDF Wave 2 Grant. (para 8.9 of report FIN/633).

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/633 of the Head of Corporate Finance on the 2023/2024 Budget Monitoring Quarter 1 report. The report set out a summary of the Council’s actual revenue and capital spending for the quarter to June 2023 together with the main variations from the approved spending levels and impact on future budgets.

Councillor Ayling presented the Overview and Scrutiny Commission’s comments on the report OSC/314 to the Cabinet following consideration of the matter at its meeting on 25 September 2023.  The comments highlighted that the Head of Corporate Finance had confirmed that the pay award variation was £280k as quoted in appendix 1(ii) of report FIN/633.

Councillor Crow was invited to speak on the item and, in doing so, stressed that the housing issue was currently a dominating matter.  In response to comments made by Councillor Crow, the Leader confirmed that clarity was needed on the New Burdens funding and additional funding to ease the housing issues was also being actively looked into.

Councillors Irvine and C Mullins spoke as part of the discussion on the report. 

RESOLVED

That the Cabinet:

a)    Agrees to note the projected outturn for the year 2023/2024 as summarised in report FIN/633.

b)    Approves a supplementary capital estimate of £70,000 required for data migration to the new Benefits Online and Document Management System this will be funded from the Welfare Reform Reserve. (para 8.7 of report FIN/633).

c)     Approves a supplementary capital estimate of £169,100 for the repair of the Pit Lift at the Hawth Theatre funded by £120,300 from the revenue programme maintenance budget and £48,800 from capital receipt. (para 8.8 of report FIN/633).

That Full Council be asked to:

d)    Approve the addition to the Capital Programme of £1,052,466 for Disabled Facility Grants funded from the Better Care Fund. (para 8.4 of report FIN/633).

e)    Approve a supplementary capital estimate of £6,000,000 for HRA acquisitions of land or dwellings to be funded from 1-4-1 receipts of £2,400,000 and £3,600,000 of borrowing. (para 8.9 of report FIN/633).

f)      Approve the addition to the HRA Programme Maintenance budget of £6,792,086, this will be funded from SHDF Wave 2 Grant. (para 8.9 of report FIN/633).

Reasons for the Recommendations

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

To consider report FIN/633 of the Head of Corporate Finance.

The Commission considered report FIN/633 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 2023 together with the main variations from the approved spending levels and impact on future budgets.

·         Recognition that there was a projected overspend in year, following the impact of the pandemic, the cost-of-living crisis, demands on services including Homelessness, reduced income and inflation factors.  It was commented that the situation was not sustainable but would be consistently monitored and continued to be reported in future monitoring reports as well as the Budget Strategy.

·         Confirmation was provided on the latest position regarding New Burdens funding, together with further information on the work currently being undertaken following the decision to grant British citizenship to people of Chagossian descent, the resultant pressures and potential impact for the town’s housing.

·         Clarification sought and obtained on the costings on various elements for the new town hall.

·         Explanation sought as to the pay award offer, the additional cost projected for the General Fund together with the vacancy provisions documented within the report. (The Head of Corporate Finance subsequently confirmed that the correct figure was £280k as quoted in appendix 1(ii)).

·         It was noted that the General Fund balance would be close to the recommended minimum of £3m by the end of the financial year if no corrective action was taken.

·         Recognition 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.  It was noted that there were financial, resource and letting benefits resulting from an efficient turnaround of void properties.

·         Acknowledgement that the Decarbonisation Fund was being deployed on a ‘fabric first’ approach on a defined list of properties.

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.