This report sets out the projected revenue and capital outturn positions for 2022/23 for both the General Fund and the Housing Revenue Accounts as at the end of Quarter 1 (June 2022), as well as the performance against the measures of success published in the Council’s Corporate Plan.  The following documents were attached to the report:

·     Appendix 1 – Financial Monitoring for Quarter 1

·     Appendix 2 – Capital Programme for Quarter 1

·     Appendix 3 – Corporate Plan Measures for Quarter 1

·     Appendix 4 – Corporate Plan Projects for Quarter 1

·     Appendix 5 - Debt Write-Offs (exempt information)

The report noted that the forecast General Fund (GF) revenue outturn position at the end of Quarter 1 included a projected adverse net variance on service expenditure of £4.058m. This variance was offset by a projected £4.616m positive net variance on Corporate budgets, of which £3.627m related to the unallocated Corporate Contingency, resulting in a projected overall positive net variance of £0.558m.  The forecast adverse variance on services included net pressures totalling £0.564m within Adult Care and Health Services relating to care cost pressures; £1.669m within Economic Growth and Neighbourhood Services, primarily relating to ongoing income shortfalls in Car Parking and Planning as an ongoing impact of Covid-19; £1.761m within Brighter Futures for Children (BFfC), relating to pay, inflation and demand pressures; and a total £0.064m across Resources and Chief Executive Services relating to income pressures.  Detailed explanations for these variances were set out in the report. 

The report explained that the service budget pressures were offset by positive net variances within Corporate Budgets, specifically £1.713m on Capital Financing Costs as a result of the 2021/22 Capital Programme outturn position and £3.627m on Corporate Contingencies.  Other Corporate Budgets were forecasting an adverse net variance of £0.724m.  This was primarily due to a current forecast pressure of £0.934m relating to the 2022/23 pay award.  A pay award of 2% was assumed as part of 2022/23 budget setting with additional contingency retained corporately to fund a pay award up to 4%.  The pay offer made in July 2022 was estimated to cost an additional £1.434m above the amount budgeted (including the contingency) across the Council and BFfC. BFfC had included a forecast pressure of £0.500m in their forecast which was prior to the pay award offer announced in July, therefore the difference of £0.934m was included within the Corporate forecast.

The report stated that £1.570m (15%) of budgeted savings had been delivered to date in this financial year, with a further £5.415m (53%) of savings on track to be delivered by March 2023. £2.061m (20%) of savings were currently categorised as non-deliverable (red) and £1.178m (12%) categorised as at risk of delivery. There was therefore a potential impact on the 2023/24 budget should these savings not be deliverable on a recurring basis.  These savings would be reviewed as part of the  2023/24 budget setting and 2023/24-2025/26 Medium Term Financial Strategy processes.

The report also explained that the Housing Revenue Account (HRA) was projecting a positive net variance of £2.505m as at the end of Quarter 1, which resulted in a forecast contribution to HRA reserves of £0.422m.  The General Fund Capital Programme was forecast to spend to budget against a revised budget of £115.980m in 2022/23, and the HRA Capital Programme was forecast to spend to budget against a revised budget of £30.502m 2022/23.  The report sought approval for the revisions to the General Fund and HRA capital programmes and spend approval for a number of schemes.

Resolved –

(1)      That it be noted that:

(a)      The forecast General Fund revenue outturn position as at the end of Quarter 1 was a positive net variance of £0.558m;

(b)      The Housing Revenue Account (HRA) was projecting a positive net variance of £2.505m as at the end of Quarter 1, which resulted in a forecast contribution to HRA reserves of £0.422m;

(c)      £1.570m (15%) of savings had been delivered (blue) to date in this financial year, with a further £5.415m (53%) of savings on track to be delivered (green) by March 2022; £2.061m (20%) of savings were currently categorised as non-deliverable (red) and £1.178m (12%) categorised as at risk of delivery (amber);

(d)      There was a total £4.065m Delivery Fund available for 2022/23 (inclusive of 2021/22 approved carry forwards), at Quarter 1, £2.051m of this funding had been allocated out to approved schemes;

(e)      The General Fund Capital Programme was forecast to spend to budget against a revised budget of £115.980m;

(f)      The HRA Capital Programme was forecast to spend to budget against a revised budget of £30.502m;

(g)      The performance achieved against the Corporate Plan success measures was set out in the report and Appendices 3 and 4;

(2)      That the write-off of debts as set out in Section 8 and Appendix 5 relating to Non-Domestic Rates (£58,562.68) and Housing Benefit Overpayments (£25,944.98) be approved;

(3)      That the amendments to the General Fund Capital Programme (as set out in further detail in Section 12 of the report and Appendix 2), resulting in a revised budget of £124.480m, be approved:

(3)      That the amendments to the HRA Capital Programme (as set out in further detail in Section 12 of the report and Appendix 2), resulting in a revised budget of £30.502m, be approved;

(4)      That spend approval be given for the following Capital Programme Schemes totalling £3.650m: 1 Dunsfold fit out for family contact centre, Katesgrove Community & YOS Refurbishment, Town Hall Equipment, Berkshire Record Office, Digitised TROs, Replacement Vehicles, Bennet Road EV Chargers, Hexagon Lighting and Prospect Park.