Purpose

To receive the Quarter 3 2023/24 Budget
Monitoring Report.

Decision

An analysis of forecast expenditure against
the Council’s overall revenue budget of £11,935k as at
the end of December 2023 (Month 9) was presented.
 
A £521k revenue overspend was forecast,
split between the policy committees and corporate
items.  A balanced outturn (without the
need to draw from general reserves) was still anticipated due to
corporate contingencies of £721k. While the final quarter was
being carefully managed to deliver the best possible year-end
position, risks remained regarding costs associated with inflation,
temporary accommodation and planning appeals.   
 
The forecast variance was detailed as
follows:
 
·    Community
Services: £85k underspend
·    Housing (General Fund): £26k
overspend
·    Planning Policy: £533k
overspend
·    Strategy & Resources:
£6k underspend
·    corporate items:
£53k overspend
 
The Planning Policy Committee was forecasting
a £71k use of Planning Reserves. i.e.:
 
·     
£69k from the Planning Policy & Local Plan Earmarked
Reserve to fund the salaries overspend associated with a full year
use of interims and seconded officers to manage the Planning Policy
team function; and
 
·     
£2k from the Neighbourhood Plan Reserve to fund the overspend
associated with the Tatsfield Neighbourhood Plan.

 
The budget for corporate items had increased
by £85k to distribute a savings target and align management
budgets following the organisational restructure in 2023. Virements
of the £85k were recommended as follows:

 
·      £45k
to Community Services – rationalisation of management across
Operational Services and Environmental Services.

 
·      £40k
to Strategy & Resources – rationalisation of management
across services in the Resources Directorate.
 
The capital programme was forecasting
£93k of net slippage, comprising £941k General Fund and
CIL schemes, offset by an acceleration of £847k expenditure
on Housing General Fund items.
 
Regarding the salary overspend due to the
on-going engagement of contractors and seconded officers, concerns
were expressed at the implications of failing to attract permanent
staff, especially for certain senior positions. In response to the
debate, the Chief Executive undertook to submit a report to the
Committee’s 27th June meeting to inform Members about the
Council’s recruitment processes and measures being pursued to
create a more stable, in-house workforce, especially to the
Planning Policy team. 
 
The Director of Resources Officer responded to
questions about the extent to which the cost of contract staff was
offset by savings associated with other vacant posts not being
filled. In doing so, he explained that committee budgets (with the
exception of Planning Policy) incorporated a 4% staff vacancy
factor. However, this did not represent a target and managers were
expected to seek to fill vacancies as quickly as possible.
       
   

Actions

Responsible Person

Deadline
 

To identify and
implement actions at the earliest opportunity to improve staff
retention and recruitment (including via consultation with the
Member Reference Group and Planning Policy Working Group) and
to submit an associated report to the Strategy & Resources
Committee on 27th June 2024 to include:
 
·   ‘issues
and challenges’;
 
·   benchmarking
against other Authorities if possible; and
 
·  progress of the actions referred to
above. 
 
To provide an
interim officer update at MRG prior to Full Council. (For the Chair
to deliver as a verbal update at Full Council upon moving the
reception of the minutes of the meeting.)
 

David
Ford
Mark Hak
Sanders

Work to commence
forthwith, culminating in a report to the 27th June 2024 meeting of
the Committee, to be published on 19th June 2024.
 
 
 
 
 
 
 
 
17th
April 2024

To explain how the
Council generates a ‘scrap metal income’ (referred to
in the revenue commentary for the Community Services
Committee).

Mark Hak
Sanders

 15th April 2024

        
         
 R E S O L V E D
– that:
 
A.    the
forecast revenue and capital budget position as at Quarter 3 /
Month 9 (December) 2023 be noted; and
 
B.    budget
virements totalling £85k between the Community Services
Committee, Strategy & Resources Committee and Corporate Items
to realign budgets to the current management structure, as set out
in Paragraph 17 of the report (i.e. £45k to Community
Services and £40k to Strategy & Resources) be
approved.