Strategic Performance Monitoring P6 Budget Monitoring Report that is going to Cabinet on Wednesday, 14th December, 2022

The committee considered the report on Budget Monitoring Report presented by Cllr Saied Ahmed and Nisar Visram, Director of Finance Audit and Procurement.

The committee made the following comments and questions:

·       How sustainable is the policy when the reserves are gone? What are the key drivers to explain the overspend? Nisar Visram explained how the funding has been applied this year, but Adult Social Care has been an overspend. But future budgeting around this will take this into account, along with additional funding, year on year.

·       The reporting on employment skills is very thin, more detail is needed to explain the expense. Nisar Visram agreed to investigate this area for the committee and see if this can be reported on at future meetings.

·       On the extra funding for staffing on the Mayor’s office, can this expenditure be justified? Could the spending not be put into areas like customer service? Nisar Visram explained how this will be funded, including initially from reserves, then from the medium-term budget. Cllr Saied Ahmed stated that the Mayor’s office staffing is an important part of improving the borough, making it more open to ensure that residents are able to meet with, and engage with the Mayor.

·       The repairs & maintenance budget is forecasting a favourable variance; however, this does seem to have an impact on tenants and leaseholders who will be paying for repairs? What is the impact of Gill Street not progressing? Can these projects not be funded from reserves? Nisar Visram explained the pressures that have been found and what impact this has had on the revenue budget. Cllr Saied Ahmed stated that building homes was a priority of this council, but the committee would need to wait and see what these projects turn out to be.

·       What is the progress on the councils plans to build more homes? Cllr Saied Ahmed stated the current plans on home building, like meeting with new developers.

RESOLVED

The report was noted.

Decision

1.    To note the Council’s provisional outturn position against General Fund, Dedicated Schools Budget, Housing Revenue Account and earmarked reserves for 2021-22, based on forecasts as at 31st March 2022;

2.    To note the reserves position of the Council is uncertain pending the closure of the statement of accounts for the period 2016 – 2021;

3.    To note the progress made against the 2021-22 savings targets, based on forecasts as at 31st March 2022;

4.    To note the Council’s projected outturn position against General Fund and Housing Revenue Account capital programme approved budgets, based on forecasts as at 31st March 2022 and approve the net slippage of 2021-22 budgets to periods 2022-23 to 2024-25;

5.    To note that there are no equalities implications directly resulting from this report, as set out in Section 4.

Action by:

INTERIM CORPORATE DIRECTOR, RESOURCES (K. BARTLE)

(Director of Finance, Audit and Procurement (N. Visram)

Councillor Saied Ahmed, Cabinet Member for Resources and the Cost of Living, introduced the report setting out the Council’s budget monitoring report for 2021-22.

He highlighted the small underspend set out in the report but he also highlighted a number of risks including the ongoing impact of the Covid-19 pandemic as well as service pressures in areas such as adults and children’s social care. Finally he noted that £1.3million of unachievable savings had been identified which would need to be managed.

The Mayor noted the report and agreed the recommendations as set out.

RESOLVED

1.    To note the Council’s provisional outturn position against General Fund, Dedicated Schools Budget, Housing Revenue Account and earmarked reserves for 2021-22, based on forecasts as at 31st March 2022;

2.    To note the reserves position of the Council is uncertain pending the closure of the statement of accounts for the period 2016 – 2021;

3.    To note the progress made against the 2021-22 savings targets, based on forecasts as at 31st March 2022;

4.    To note the Council’s projected outturn position against General Fund and Housing Revenue Account capital programme approved budgets, based on forecasts as at 31st March 2022 and approve the net slippage of 2021-22 budgets to periods 2022-23 to 2024-25;

5.    To note that there are no equalities implications directly resulting from this report, as set out in Section 4.