Agenda item

The Deputy Chief Executive presented the Financial Outturn and Quarter 4 Performance Monitoring Report 2024/25 for the Executive Committee’s consideration.

Members were advised that the report contained historic data.  The Council had been reporting a £150,000 overspend in quarter 3 but a balanced position had been reached by the end of quarter 4, although there were some variances within departmental budgets.  The capital programme had not been spent according to plan, although work on the DMIC was on track.  Delays to the Town Hall refurbishment project had had some impact on capital expenditure, but it was anticipated that this would now be progressed.

By quarter 4 of the 2024/25 financial year the Council had just under £8 million in reserves.  This was a healthy financial position for a small Borough Council.  However, the Council could not be complacent and there remained work to do, particularly with respect to budget management.

The layout of the performance data that was presented in the report had been reviewed and updated for Members’ consideration.  The aim of the new format was to present performance data in an easy to read, user-friendly manner.

Following the presentation of the report, Members discussed a number of points in detail:

·             The work that had recently been undertaken to submit the Council’s 2024/25 accounts according to deadline.

·             The recent changes to rules for procurement in the public sector and the impact that this had had in local government.  Members commented that concerns on this subject had been raised by delegates who had attended the recent Local Government Associations (LGA) Conference.

·             The concerns that had been raised at the LGA conference that some contractors added a premium cost when bidding for contracts from Councils.

·             The work of the Council’s Procurement Team to update the Contract Procedure Rules at the Council.

·             The need to achieve value for money (VFM) through procurement.  Members were asked to note that this did not necessarily mean accepting the cheapest quote as sometimes lower quotes might not be realistic and could place projects at risk.

·             The need for appropriate contract management arrangements to be in place alongside officers following the Council’s procurement rules.

·             The need for suppliers that were awarded Council contracts to have appropriate insurance and to operate in an ethical manner.

·             The hard work of the Financial Services team.  Members thanked the Financial Services team for their hard work and also asked for their thanks to the Portfolio Holder for Finance to be recorded in the minutes.

·             The additional transparency arising from the new approach to reporting performance data that had been adopted at the Council.  Members thanked the Policy team for their hard work on introducing the new approach to performance monitoring.

·             The fact that performance data had been presented in a way that was grouped around the Council’s priorities.

·             The benefits arising from the new approach to presenting performance data for Portfolio Holders, who would find it easier to monitor the performance of services within their remit.

·             The Council Tax collection data reported in the performance monitoring information and the reasons why the reported 96 per cent collection rate differed from recent reports in the local press.  Officers clarified that the Council was aiming to collect 97 per cent of Council Tax as a minimum by the end of the financial year.  The figures reported at quarter 3 might have been lower but this did not mean that the Council would not be on track to meet the 97 per cent target by the end of the financial year.  Furthermore, the Committee was informed that Council Tax collection rates were often lower in parts of the country with higher levels of deprivation.  In this context, Redditch Borough Council was performing very well in respect of collecting Council Tax.

·             The levels of sickness absence that had been reported in the performance data and the extent to which this represented a worrying trend.  The Committee was informed that the Council had recently changed the way sickness absence data was recorded and therefore the data could not necessarily be viewed as representing a recent increase in sickness absence.  However, sickness absence data was being specifically reviewed and a report would be available to view using Power BI in due course.

RESOLVED that

1)          the 2024/25 outturn position in relation to revenue budgets be noted as a revenue underspend of £4k and that this excluded the Balance Sheet Monitoring for the Treasury Monitoring Report as this would be taken as a separate report;

2)          the proposed carry-forward of Homelessness Prevention Grant funding to fund the Neighbourhood Tenancy Restructure be noted;

3)          the 2024/25 outturn position in relation to Capital expenditure was £7.951m against a total approved programme of £20.508m and that this be noted;

4)          the outturn position in respect of the General Fund Reserves which was at £7.822m on the 31 March 2025 be noted;

5)          the outturn position in respect of Earmarked Reserves be noted;

6)          HRA net revenue expenditure was break even after a lower than planned use of balances at year end and that Capital Expenditure was £3.062m more than budget;

7)          there was an updated procurements position with any new items over £200k to be included on the forward plan; and

8)          the Quarter 4 Performance data for the period January to March 2025 be noted.