Agenda item

The Deputy Chief Executive presented the Quarter One Revenue and Performance Monitoring 2024/25 report for the consideration of the Executive Committee.

In considering the report, Members were asked to note the current Revenue overspend of £164,000. This overspend was mainly due to the current issues being experienced with the Council’s fleet, which Members were aware of. Another area that had impacted on the overspend was the pay award which was yet to be ratified. It was noted that that there were mitigations being put in place in order to address the overspend and that the Government had indicated the potential of any pay award amount being covered through Central Government funding.

There was also a projected overspend of £2.79m across service areas. This overspend would be offset by additional income of £2.46m in Corporate Financing from additional grant income of £1.18m together with increased investment interest receivable of £260,000 and lower interest payable of £386,000.

Members were advised that the current expenditure in the Capital Programme was £1.28m and that the Council was in a strong position in terms of the Earmarked Reserves which were currently at £5.242m.

Members were informed that, as part of the Capital Programme a project was underway in order to improve the Arrow Valley Country Park Visitors’ Centre. The capital funding for this project would be £350,000 in the first year with a further £100,000 in the next financial year. However, it was proposed that the £100,000 be brought forward to allow the works to be carried out earlier and in the ‘quieter’ period for the park in order to maximise income on the improved facilities in the Spring / Summer of 2025 and increase engagement with communities at the Arrow Valley Country Park Visitors’ Centre.

It was further noted that the Housing Revenue Account was in a strong position, however there may need to be some variances to a number of budget lines as a result of some areas that would need to be addressed such as structural repairs and electrical upgrades.

Also included in the report was the Council’s debt and borrowing position for Quarter One. This outlined how the Council was using its working Capital as well as the Council’s Prudential Indicators. It was noted that only one of the prudential indicators had been non complaint. This was a short-term loan between Bromsgrove District Council and Redditch Borough Council. Members were informed that this loan had been repaid at the start of Quarter Two.

Members attention was drawn to the information included in terms of the Procurement Pipeline and the contracts expected to be reprocured and new procurement projects. There were currently fourteen contracts between the threshold of £50,000 and the new key-decision threshold of £200,000 and a further fourteen contracts over the new key-decision threshold of £200,000. With a further thirteen contracts procured by Bromsgrove District Council on behalf of Redditch Borough Council all of which related to ICT contracts.

The Performance Measures information included within the report on the whole presented a positive picture for the Council. Areas of particular note were the increase in take up of startup business grants, the increase in residents accessing energy advice and the staff retention rates which continued to be higher than the national average.

Following the presentation of the report, Members reiterated that mitigations were in place to address the current £164,000 overspend. It was also stated that it seemed sensible to agree the proposal that the funds be released for the upgrade at the Arrow Valley Country Park Visitors’ Centre which would be beneficial for the next busy season in 2025.

It was also noted that the engagement with young people was positive, and this was an area where Members hoped would continue to improve to into the future.

RESOLVED to note:

1)    The current Revenue overspend position of £164k and actions the Council was taking to mitigate this position.

2)    The current Capital spending of £1.28m against a budget of £20.5m.

3)    The HRA Position.

4)    That the balance sheet monitoring position, including the Treasury position.

5)    There was an updated procurement position set out, with any new items over £200k to be included on the forward plan.

6)    The Q1 Performance data for the Period April to March 2024 and that this might change over the year to link into the new Administrations priorities.

RECOMMENDED that

7)    There be an advancement of £100k of Capital projects for Rubicon.