Content

(Report of Director of
Finance and Transformation)
 
The report brought
together information on salaries, major operational income streams
and investment income.  The performance
of key budget areas, together with approved variations to the
revenue budget and areas identified through revenue budget
monitoring were summarised to provide an indicative overall budget
position for the year.  Updates on
capital expenditure and variations agreed in relation to the
Capital Plan were also provided.
 
Cabinet noted that
in respect of salaries, overall actual expenditure to the end of
August 2023 was £53,000 less than budgeted at the February
Budget meeting after adjusting for an additional allocation of
funding in the sum of £105,800 from the General Revenue
Reserve to pay for temporary staffing in Planning.
 
Overall actual
income to the end of August was £140,986 less than
budgeted.  The majority of areas were
currently below profiled budget and these were currently subject to
review to identify trends that could provide better detail on
income being received.
 
Members’
attention was drawn to the significant demand on Temporary
Accommodation (TA) and increasing costs on nightly paid
accommodation, and the need to explore all options to improve TA
position to ensure sustainable provision, including expanding own
stock, was recognised.
 
Particular
reference was made to a successful claim to HMRC in respect of
overpaid VAT on sports and leisure activities covering the period
August 2007 to June 2011.  In August
2023, this claim was accepted and the ‘net’ windfall
receipt was £1,967,500.  Proposals
on how this funding might best be utilised for the benefit of the
Borough would be included in the Medium Term Financial Strategy
update report to Cabinet in November.
 
Members welcomed
the positive update in respect of the position of the Business
Rates pooling, as detailed in paragraph 1.14.
 
With regard to the
recommendation from the External Auditors on engaging the public to
undertake a dedicated budget consultation to determine local
priorities for resources or opportunities for savings, Cabinet
considered their existing approach to decision making rigorous but
would keep the recommendation in mind.
 

RESOLVED:  That
 
(1)         
it be noted that as at the end of August 2023, the projected
overall outturn position for the year 2023/24 was a net favourable
variance of circa £1,861,794 when compared to the budget set
in February 2023;

 
(2)         
it be noted that the net favourable variance was wholly related to
the windfall VAT receipt and that excluding this windfall there was
a net adverse variance of £105,706;
 
(3)         
the need to identify and implement opportunities to deliver as a
minimum this financial year’s savings target of
£500,000 be noted;
 
(4)         
the current business rate pool position as at the end of August
2023 be noted; and
 
(5)         
a dedicated public consultation event on savings would not be
undertaken but the process for identifying potential options for
savings be kept under review.