Agenda item

The report informs The Resources Overview and Scrutiny Committee of the financial spending of the Council up to the end of September 2023 for the financial year 2023/2024 and the forecast impact on the Councils Medium Term Financial Strategy for 2023/2024 to 2025/2026.

Recommended      -         That the Committee notes the report.

Councillor Peter Britcliffe, Portfolio Holder for Resources and Martin Dyson, Executive Director (Resources) presented this report.

Mr. Dyson highlighted the Revenue Budget Forecast, with spend to the end of the financial year in March 2024 forecasted at £13.385m compared to a Budget of £14.383m. This forecast produces a positive variance of £0.998m by the end of the financial year.

Mr. Dyson drew attention to the variance in forecast by service area, reporting the following:

Environmental Health Services are predicting a year-end adverse variance of

£70,000 and the main variances is due to increased agency costs for backfilling of

vacant posts of £19,000, additional licensing enforcement costs on legal fees of

£11,000 and reduced income in year due to staff vacancies and the inability to carry

out enforcement £40,000.

Environmental Services are predicting a year-end positive variance of (£61,000) and the main variances are: Page 3 of 13 Environmental Maintenance is forecasting an adverse variance of £70,000, due to forecast increased vehicles maintenance costs of £104,000, additional building cleaning costs of £6,000 and staffing savings of (£13,000) and utility savings of (£49,000) and increased software licences and general rises in equipment costs of £22,000.

Legal and Democratic Services are indicating a forecast adverse variance of £141,000 for the year. Service expenditure on Democratic Services is forecasting an adverse variance of £80,000 with the main variances due to additional costs of £67,000 in undertaking local elections and £13,000 for Modern Government software upgrades to maintain democratic and committee reporting.

Planning & Transportation are predicting an adverse variance for the year of £209,000 for the year. This is due to additional spend on agency and salary costs of £232,000 due to recruitment and retention issues, plus £34,000 additional costs on energy and property rates, less an additional (£57,000) of forecast increased allotment income in year.

Regeneration & Housing Services are predicting an adverse variance of £37,000 at year-end. Facilities Services has an adverse variance of £40,000 due to increase fee income for Disabled Facilities Grants of (£24,000) offset by £12,000 of additional costs for Christmas decorations and the need to undertake £52,000 worth of condition and safety surveys at the Oswaldtwistle theatre, since the lease has been returned to the Council.

The Resource Directorate is predicting a positive variance of (£430,000) for the year.

Non Service Items are predicting a positive variance for the year of (£964,000). This is due to forecast savings on borrowing and leasing costs of (£171,000). This is due to slippage in the capital programme plus additional treasury investment income of (£793,000) due to utilising new methods of investing funds, the increase in interest rates available and also the significant balances that the council has been able to invest largely due to slippage in the capital programme.

Mr. Dyson summarised the difference between Q1 and the current forecasts and the reasons for such, and highlighted potential in year risks including:

-       Waste disposal site / transfer station

-       Oswaldtwistle Civic Theatre

-       Crematorium / Cremators

-       Leisure Trust / Swimming pool support

Cllr Britcliffe said he wished to thank officers for sound financial management which has led to the forecast underspend, and puts the Council in a good position to deal with any unexpected financial pressures which may arise.

Cllr Britcliffe and Mr Dyson responded to the following questions from committee members:

-       Is Blackburn crematorium closed permanently? How long is the increased demand at Accrington likely to continue for?

-       Regarding recruitment, retention and the growing costs of using agency staff – Has there been any work done on identifying why these are growing issues for the council and have any steps been taken to resolve them?

-       Due the unsuccessful bid to Sport England for the revenue element of the Swimming Pool Support Fund, does the council foresee itself providing further subsidies or support to Hyndburn Leisure, and does this itself present a risk?

-       What is the Council doing now to plan for the major risk associated with Waste Disposal at Whinney Hill?

On behalf of the Committee, the Chair thanked Cllr Britcliffe and Mr. Dyson for the report and responses to questions.

Resolved        -           That the report be noted.