Issue - meetings

The Deputy Chief Executive presented the Finance and Performance Quarter 3 Monitoring Report for the 2023/24 financial year.

Members were advised that the report included:

·             The Council’s forecast outturn revenue and capital monitoring positions for 2023/24 based on data to the end of Quarter 3.

·             The updated Worcestershire Regulatory Services (WRS) fees and charges.

·             The half yearly Treasury Management Report.

·             Procurement pipeline projects.

·             The organisation’s performance against the Council’s strategic priorities outlined in the Council Plan Addendum, including operational measures to demonstrate how the Council was delivering services to customers.

In respect of revenue spending, overall, by the end of Quarter 3, the Council was forecasting a revenue overspend for 2023/24 in the region of £950,000.  However, this figure had been calculated before the application of £557,000 from the Utilities Reserve, as approved at Quarter 1. The forecast overspend was predominantly due to:

·             The implications of the 2023/24 pay award, which was paid in the December payroll and backdated to 1^st April 2023.

·             Temporary and interim staff requirements and their associated cost pressures.

·             The impact of homelessness and the cost of temporary accommodation costs. A review of grants available to offset the cost pressures was taking place by the date of the meeting.

·             Higher than expected ICT costs in Business Transformation and Organisational Development.

·             A higher than expected share of service costs in from Bromsgrove District Council in Environmental Services.

However, this overspend was offset in part by:

·             A forecast underspend against the utilities budget provision due to utilities inflation running at 70 per cent. In the 2023/24 budget, the Council had assumed a 100 per cent increase in this budget would be needed and had therefore set up a reserve for the same amount.

·             Higher than expected grant income in Community and Housing Services.

·             Higher than expected fees and charges in Planning and Leisure Services.

The Capital spend at Quarter 3 was £2.586 million (compared to £1.267 million at Quarter 2) against the overall 2023/24 capital budget totalling £12.651 million. Members were asked to note that, as per the Medium Term Financial Plan, carry forwards of £3.292 million would be added to this figure to take account of slippage from 2022/23.  The capital section set out progress on the Town’s Fund Schemes and also the Community Hub initiative at the Town Hall.

The report detailed proposedupdates to the WRS 2024/25 fees and charges.  These were originally agreed in Tranche 1 of the 2024/25 budget, but updates were needed in areas where fees were statutorily set. 

The Council detailed its Treasury Management Strategy and associated indicators as part of the Medium Term Financial Planning process.  The 2023/24 Strategy and Indicators were agreed at Council in February 2023. There was a requirement for a report to be produced for the consideration of Council to show performance against these strategic indicators at the half yearly position and then at the year end.  The report provided the half yearly performance update.  Members were asked to note that by the date  ...  view the full minutes text for item 110