This 2022/23 Quarter 1 Performance and Monitoring Report was presented to Policy Committee on 21 September 2022. The report also sets out performance against the measures of success published in the Council’s Corporate Plan.

Darren Carter, Director of Finance, submitted a report, which had been considered by Policy Committee on 21 September 2022 (Minute 30 refers) setting 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 June 2022 (Quarter 1). The report also summarised 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 meeting discussed the necessity of the Quarterly Performance Report being submitted to both the Policy Committee and the Audit & Governance Committee within a very short space of time. The Chair undertook to liaise further with officers and Members of the Committee regarding the matter.

Resolved:     That the 2022/23 Quarter 1 Performance and Monitoring Report and the recommendations set out and approved by Policy Committee on 21 September 2022 be noted.