This report sets out the projected Revenue and Capital outturn positions for 2023/24 for the General Fund and the Housing Revenue Accounts as at the end of Quarter 2 as well as the performance against the measures of success set out in the Council’s Corporate Plan.

The Committee submitted a report setting out the projected revenue and capital outturn positions for 2023/24 for both the General Fund and the Housing Revenue Accounts as at the end of Quarter 2, 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 – Recovery Plan Quarter 2 (2023/24)

·         Appendix 2 – Brighter Futures for Children (BFfC) Budget Monitoring Report Quarter 2 (2023/24)

·         Appendix 3 – Savings Tracker Quarter 2 (2023/24)

·         Appendix 4 – a. Capital Programme Tracker Quarter 2 (2023/24)

·         Appendix 4 – b. Capital Programme Tracker Quarter 2 (2023/24 to 2025/26)

·         Appendix 5 – Corporate Plan Performance Measures (Monthly & Quarterly) Quarter 2 (2023/24)

·         Appendix 6 – Corporate Plan Projects and Initiatives Quarter 2 (2023/24)

The report stated that the General revenue outturn position at the end of Quarter 2 projected an adverse net variance of £3.685m, consisting of £10.984m of net pressures within Service expenditure budgets. This variance was partially offset by a positive net variance of £7.299m across Corporate Budgets. The overall forecast variance was a net improvement of £0.120m from Quarter 1. The net improvement of £0.120m included £3.117m of identified recovery plan mitigations that each directorate was tasked with developing as part of the 2023/24 Quarter 1 Performance and Monitoring Report. These mitigations had been predominantly offset by £2.200m of increased pressures relating to Children’s Services delivered by Brighter Futures for Children (BFfC) which was now forecasting an overall adverse net variance of £7.019m; £0.375m of increased pressures within Waste Disposal; and £0.422m of other net pressures across other council services. The £3.117m of identified recovery plan mitigations were set out individually in Appendix 1 to the report.

The report explained that the most significant movement from Quarter 1 related to Children’s Services delivered by Brighter Futures for Children (BFfC) which was forecasting an overall adverse net variance of £7.019m; an increase of £1.190m from Quarter 1. The majority of the movement from Quarter 1 related to Childrens’ placements.

The report also noted that the second most significant adverse movement since Quarter 1 was in Waste Disposal within Environmental & Commercial Services, which had seen £0.375m of increased pressures as a result of increased overall waste tonnage levels.

The report explained that the non-delivery of previously approved Medium Term Financial Strategy savings continued to be a concern with only 42% of these savings currently showing as on track or delivered. As has been previously reported, all budgeted contingencies had already been released and factored into the Corporate Budgets forecast.

The report also sought approval for amendments to the General Fund Capital Programme. The provisional General Fund Capital Programme outturn was now forecasting a positive net variance of £1.078m against a proposed revised budget of £67.090m in 2023/24. This variance related solely to the Delivery Fund. During this quarter, the Capital Programme Board had led a review of all Capital Programme schemes in respect of scheme deliverability with project managers and re-forecast spending plans with the aim of right sizing the budget to match individual scheme delivery profiles, and to address historic reprofiling/slippage issues.

The report noted that the Housing Revenue Account (HRA) was projecting a positive net variance of £0.457m as at the end of Quarter 2.  Therefore, a drawdown from HRA Reserves was forecast of £2.042m rather than the originally budgeted £2.499m. The HRA Capital Programme was forecasting to spend to budget against a revised budget of £33.564m in 2023/24.

The report also set out performance against the measures of success published in the Council’s Corporate Plan. Of the 26 Corporate Plan Performance Measures monitored monthly or quarterly, 58% had improved since Quarter 1 of 2023/24, whilst 38% had worsened.

Resolved

(1)        That it be noted:

a)    That the forecast General Fund revenue outturn position for Quarter 2 was an adverse net variance of £3.685m which was a net improvement of £0.120m from Quarter 1;

b)   That the forecast General Fund revenue outturn position for Quarter 2 included £3.117m of Recovery Plan mitigations identified during the Quarter;

c)    That £0.235m (3%) of previously approved Medium Term Financial Strategy savings had been delivered (blue) to date in this financial year, with a further £3.219m (39%) of savings on track to be delivered (green) by March 2024. £2.985m (37%) of savings were currently categorised as non-deliverable (red) and £1.679m (21%) categorised as at risk of delivery (amber);

d)   That the General Fund Capital Programme was forecasting a positive net variance of £1.078m against the proposed revised budget of £67.090m;

e)    That there was a total £4.595m Delivery Fund available for 2023/24 (inclusive of 2022/23 approved carry forwards). At Quarter 2, £3.753m of this funding had been allocated out to approved schemes;

f)     That the Housing Revenue Account (HRA) was projecting a positive net variance of £0.457m as at the end of Quarter 2, which results in a forecast drawdown from HRA Reserves of £2.042m rather than the originally budgeted £2.499m;

g)   That the HRA Capital Programme was forecasting to spend to budget against the proposed revised budget of £33.564m;

h)   That the performance achieved against the Corporate Plan success measures was as set out in Section 12 and appendices 5 and 6;

(2)        That the amendments to the General Fund Capital Programme (as set out in Section 8 and Appendix 4a and 4b to the report), which incorporated virements between schemes including transfers of budget into the Hexagon and Library LUF schemes and resulted in a revised Capital Programme budget of £67.090m for 2023/24, £93.811m for 2024/25 and £50.221m for 2025/26, be approved;

(3)         That the amendments to the HRA Capital Programme (as set out in Section 11 and Appendix 4a and 4b of the report) resulting in a revised Capital Programme budget of £33.564m for 2023/24, £49.183m for 2024/25 and £67.802m for 2025/26, be approved;

(4)              That the Scheme & Spend approval for the Local Authority Housing Fund scheme within the HRA Capital Programme as set out in Section 11 to the report be approved.