Purpose

The purpose of this report is to
update Members on the Council’s treasury management activity
for the first six months of the year, including investment and
borrowing activity and treasury performance.
 

Decision

With
the aid of a report prepared by the Director of Finance &
Corporate Resources (See copy which is appended in the Minute
Book) the Cabinet considered a report
that provided
details of (i)the Council’s projected financial
performance for 2023/2024;
(ii) Revenue outturn estimated underspend of
£1.202m; (iii) Capital
outturn estimated underspend/rephasing of £13.617m.
The appended document provided details on the
Quarter 2 expenditure forecast takes into account those factors
affectingexpenditure and income that are
known by the end of September 2023.
 
By way
of background, the Executive Councillor for Finance and Resources
introduced the report explaining that the net
revenue budget for 2023/24 totals £24.344m (including carry
forwards of £0.231m), the forecast outturn as at the end of
quarter 2 is £22.573m. Including a contribution to reserves
of £0.569m this gives a forecast underspend of £1.202m.
This is as a result of (large variations);
 
 
Corporate
Resources underspend £0.9m as a result of;
increased interest received, vacant posts, reduced
facilities management costs including utilities and business rates.
Increased costs due to streaming committee meetings.
Chief
Operating Officer underspend £0.1m as a result of;
Building Control savings, government grant for
supporting Ukrainians, vacant posts in Customer Services (that are
now filled). Costs remain for the council as a consequence of
shortfall from Housing Benefit payments for homelessness from
government (known as subsidy) and increased postage costs due to
Royal Mail increases..
Chief
Planning Officer underspend £0.1m as a result of:
Staff saving due to vacancies, increase in
PPA/Pre-application fee income and reduced reliance on contractors
(to date).
Strategic
Insight and Delivery overspend £0.1m as a result
of; Staff vacancies, and savings on
utilities at Countryside Services, offset by market and parking
income reductions.
Operations
underspend £0.2m as a result of; Increased CCTV income, and reduced works required on
watercourses, offset by loss of Street Cleansing income.
 
 
Capital
Forecast
 
The approved original budget is £29.392m, which
included re-phased budget from prior years of £15.898m. At
the year end the actual budget rephased was £18.342m, which
is £2.444m more rephased than budgeted, in addition funded
housing grant of £0.744m has been confirmed from DLUHC,
£0.295m funding for Ramsey Public Realm, and £0.275m
for One Leisure St Ives Pitch Replacement. The current budget is
therefore £33.150m (£29.392m + £2.444m +
£1.314m).  The forecast outturn is £19.533m as a
result of potential re-phasing to 2024/25 (subject to evaluation
during the upcoming MTFS process) of £13.617m.
 
This
is as a result of (Large variations only);
 
The most significant variations being,
in-year underspends(may be
approved as rephasings); Future High Streets £8.3m, Market Town
Programme £1.4m, Market Town Programme smaller schemes
£0.2m, Ramsey Food Hall £1.4m, Rural Prosperity
£0.2m, Hinchingbrooke Country Park £2.6m, Vehicles
£0.4m, Housing Company £0.2m, Disabled Facilities
Grants £0.1m; against overspends; on Fareham office enhancements £0.6m and CIL
grants £0.7m (funded from CIL reserve).
 
 
 

Recommendation(s):
 

Cabinet is
 
RECOMMENDED
 
(a) 
To consider and comment on the revenue financial
performance to the end of September 2023, as detailed in Appendix 1
and summarised in paragraph 3.2.
 
(b) 
To consider and comment on the capital financial
performance at the end of September 2023, as detailed in Appendix 2
and summarised in paragraph 3.3.
 

 

Reasons for the decision

As outlined in the report.

Alternative options considered

As outlined in the report.