The Director of Finance submitted a report setting out the projected revenue and capital outturn positions for 2022/23 for both the General Fund and the Housing Revenue Account as at the end of Quarter 3 (December 2022), as well as 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 3

•    Appendix 2 – Capital Programme for Quarter 3

•    Appendix 3 - Debt Write-Offs (exempt information)

•    Appendix 4 – Corporate Plan Measures for Quarter 3

•    Appendix 5 – Corporate Plan Projects for Quarter 3

•    Appendix 6 – Corporate Plan Measures Charts for Quarter 3

The report explained that the forecast General Fund (GF) revenue outturn position at the end of Quarter 3 included a projected adverse net variance on service expenditure of £3.985m. This included net pressures totalling £1.316m within Adult Care and Health Services, relating to care cost pressures; £1.369m within Economic Growth and Neighbourhood Services, primarily relating to ongoing income shortfalls in Car Parking and Planning as an ongoing impact of Covid-19; £0.871m within Brighter Futures for Children (BFfC), primarily relating to Childrens’ Social Care; £0.290m within Resources and £0.139m within Chief Executive Services. Detailed explanations for the variances were set out in the report.

The report noted that a corporate contingency of £3.627m set for 2022/23 had been released to offset most of the adverse variance on service expenditure. In addition, other Corporate Services budgets were forecast to deliver a positive net variance of £3.665m, including a positive variance of £2.505m against the Capital Financing budget and a positive net variance of £1.160m for other Corporate Budgets. This variance included a pressure of £0.954m relating to the 2022/23 pay award which was more than offset by positive net variances of £2.114m within Other Corporate Budgets due to the release of all unspent contingencies and the forecast reduction in the bad debt provision.  Overall, this resulted in a projected overall positive net variance of £3.307m, which was an improvement of £2.040m from Quarter 2.  It was recommended that, should the forecast positive variance on the General Fund revenue budget crystallise at the end of the financial year, this balance be transferred into earmarked reserves to support the Capital Programme.

The report also explained that £5.289m (52%) of budgeted savings had been delivered to date in this financial year, with a further £1.745m (17%) of savings on track to be delivered by March 2023.  £2.601m (25%) of savings were currently categorised as non-deliverable (and £0.589m (6%) 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 had been reviewed as part of the 2023/24 budget setting and 2023/24-2025/26 Medium Term Financial Strategy processes.

The report explained that the Housing Revenue Account (HRA) was projecting a positive net variance of £2.103m as at the end of Quarter 3, which resulted in a forecast contribution to HRA reserves of £0.051m.  The General Fund Capital Programme was forecasting a positive net variance of £1.671m against a proposed revised budget of £74.517m in 2022/23. This variance related to £0.817m of the Delivery Fund that had not yet been allocated to specific proposals as at the end of Quarter 3 and a forecast positive variance of £0.854m on approved Delivery Fund allocations.  The HRA Capital Programme was forecasting an adverse variance of £0.098m against a revised budget of £29.987m in 2022/23.

The report sought approval for a number of amendments to the General Fund and HRA Capital Programmes, resulting from additional budgets added to the Programme funded by grants and contributions, reduced budgets due to completed schemes and other carry forward budget adjustments and reprogramming of budgets into future years.  Amendments were also proposed to the HRA capital programme.  The amended Capital Programme with a revised budget of £74.517m and amended HRA Capital Programme with a revised budget of £29.987m were attached to the report at Appendix 2.

The report explained that formal confirmation of grant funding for the Bus Service Improvement Plan had now been received, and therefore sought spend approval for the total amount of £15.939m across three financial years.  The scheme was fully funded by the government grant.  Approval was also sought for the write-off of a number of debts which were set out in a confidential appendix to the report.

The report also set out performance against the measures of success published in the Council’s Corporate Plan.  Of the 27 Corporate Plan Performance Measures monitored monthly or quarterly, 70% were currently “green”, 15% “amber” and 15% “red”. 56% had improved since Quarter 2, whilst 30% had gotten worse.  Of the 52 Corporate Plan Projects, 56% were currently “green”, 38% “amber” and 6% red”.  Those measures that had shown significant change since Quarter 2 were set out in Appendix 6.

Resolved –

(1)      That it be noted that:

a)    The forecast General Fund revenue outturn position as at the end of Quarter 3 was a positive net variance of £3.307m;

b)    The Housing Revenue Account (HRA) was projecting a positive net variance of £2.103m as at the end of Quarter 3, which resulted in a forecast contribution to HRA reserves of £0.051m;

c)    £5.289m (52%) of savings had been delivered (blue) to date in this financial year, with a further £1.745m (17%) of savings on track to be delivered (green) by March 2023; £2.601m (25%) of savings were currently categorised as non-deliverable (red) and £0.589m (6%) 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 3, £3.248m of this funding had been allocated out to approved schemes;

e)    The General Fund Capital Programme was reporting a positive net variance of £1.671m against a proposed revised budget of £74.517m;

f)     The HRA Capital Programme was forecasting an adverse variance of £0.098m against a revised budget of £29.987m;

g)    The performance achieved against the Corporate Plan success measures was as set out in the report and Appendices 4 and 5;

(2)      That the intent to transfer the balance of any positive General Fund revenue budget variance at the end of the financial year to earmarked reserves to support the Capital Programme be approved;

(3)      That the amendments to the General Fund Capital Programme (as set out in further detail in Section 12 of this report and Appendix 2) resulting in a revised budget of £74.517m be approved;

(4)      That spend approval be given for the Bus Service Improvement Plan scheme;

(5)      That the amendments to the HRA Capital Programme (as set out in further detail in Section 12 of this report and Appendix 2) resulting in a revised budget of £29.987m be approved;

(6)      That the write-off of debts be approved as set out in Section 8 and Appendix 3 relating to:

a)     Non-Domestic Rates - £111,313.32;

b)     Housing Benefit Overpayments - £57,120.48;

c)      Sundry Debt - £90,858.25.