Agenda item

REPORT OF THE SERVICE DIRECTOR - RESOURCES

To inform Cabinet of the summary position on revenue income and expenditure forecasts for the financial year 2023-24, as at the end of the first quarter.

RECOMMENDED TO CABINET:

(1)   That Cabinet note this report.

(2)   That Cabinet approves the changes to the 2023/24 General Fund budget, as identified in table 3 and paragraph 8.2, a £1.119million decrease in net expenditure.

(3)   That Cabinet notes the changes to the 2024/25 General Fund budget, as identified in table 3 and paragraph 8.2, a total £270k increase in net expenditure. These will be incorporated in the draft revenue budget for 2024/25.

REASONS FOR REFERRAL: Members are able to monitor, make adjustments within the overall budgetary framework and request appropriate action of Services who do not meet the budget targets set as part of the Corporate Business Planning process.

Audio Recording 57 minute 51 seconds

The Service Director – Resources presented the report entitled ‘First Quarter Revenue Budget Monitoring 2023-24’ and highlighted:

·       A change had been made to the version of this report that would be presented to Cabinet due to a notification from Government of the potential to create a business rates pool for the financial year 2024-25.

·       The Business Rate pool would allow a small group of authorities in Hertfordshire to join together which had historically worked in favour of the Council.

·       A decision to join the pool was required by early October, and work was ongoing with the other Hertfordshire Councils, supported by some specialist consultants. The proposal was that the final decision (when all the relevant information was available) should be delegated to the Service Director - Resources. This would balance the potential gain against any risk.

·       Table 3 of the report detailed the various changes to Budget, the biggest change related to the Treasury Investment Income due to the Interest rate increase. Interest on the cash balance of the Council was not a long-term source of income.

·       The Staff Pay Award was still pending, with a likely £258K overspend if the current employer offer was agreed, this would be backdated to 1 April 2023.

·       Page 291 of the report highlighted the performance indicators of the key income sources, and their performance compared to the previous year. 

·       Table 6 of the report provided an update on the Covid 19 provision.

·       The overall General Fund Impact had an underspend against budget which was forecasted as £2.649M for the end of the financial year.

The following Members asked questions:

·       Councillor Tamsin Thomas

·       Councillor Sean Nolan

In response to questions the Service Director – Resources stated:

·       The working budget for the pay award was based on an overall 4% employee pay award, though, due to the structure of the offer, some staff would receive more than 4% and others slightly less, depending on their pay grade.

·       There had been external costs of £2K for the Baldock Fire Recovery, this did not cover Officers time. The item had been highlighted as risks and costs may increase.

·       The full Leisure Management fee is now being paid and was back to the Pre Covid amount. The new Leisure Contract was still in the tendering process, and the income from the new contract was currently unknown.

Councillor Tamsin Thomas proposed and Councillor Mandi Tandi seconded and, following a vote, it was:

RECOMMENDED TO CABINET:

(1)   That Cabinet note this report.

(2)   That Cabinet approves the changes to the 2023/24 General Fund budget, as identified in table 3 and paragraph 8.2, a £1.119million decrease in net expenditure.

(3)   That Cabinet notes the changes to the 2024/25 General Fund budget, as identified in table 3 and paragraph 8.2, a total £270k increase in net expenditure. These will be incorporated in the draft revenue budget for 2024/25.

REASONS FOR RECOMMENDATIONS: Members are able to monitor, make adjustments within the overall budgetary framework and request appropriate action of Services who do not meet the budget targets set as part of the Corporate Business Planning process.