Agenda item

Report attached.

Members considered a report of Councillor Joyce Plummer, Portfolio Holder for Resources, providinginformation on the financial spending of the Council up to the end of November 2022 and the financial forecast outturn position for the Accounting Year 2022/23.

Councillor Plummer highlighted the anticipated positive variance at the end of the financial year, in the sum of £153,000.  The figure reflected the higher than anticipated staff pay award, raised energy costs and other inflationary pressures during the year.  However, good financial management and some financial support from the Government had helped.

The Leader reiterated his earlier comments about economic growth in the Borough providing additional income to the Council.  Councillor Dad indicated that staff should be thanked for their efforts and that particular thanks was owed to Joe McIntyre, Deputy Chief Executive who was due to retire shortly.  Martin Dyson, Executive Director – Resources would continue this good work.  The Leader thanked Councillor Dad for his positive comments.

Approval of the report was not deemed a key decision.

Reasons for Decision

The financial detail of the report was provided as a table at the end of that document.

The latest forecast spend to the end of the financial year in March 2023 was £12,181,000 compared to a Budget of £12,334,000.  This forecast produced a positive variance of £153,000 by the end of the financial year.

Environmental Services were predicting a year-end adverse variance of £170,000 and the main variances were:

Waste Services were predicting an adverse variance for the year of £152,000.  This was due to £73,000 of additional staffing costs, £76,000 of increased costs in vehicle fuel and waste supplies and a predicted decline in income of £3,000.

The Parks & Cemetery Service was forecasting a positive variance of £114,000, due to additional income of £162,000 largely from burials and cremations netted off by other vehicles and supplies and services costs of £105,000 and staffing savings of £57,000.

The Town Centre & Market Budget was predicting an adverse variance of £7,000, with £10,000 of additional income less £17,000 of additional staffing costs. 

Other Environmental Health and Maintenance services were predicting an adverse variance of £125,000 due to reduced income of £13,000 and increased operating costs largely around vehicles and depots of £96,000, plus additional staffing costs of £16,000.

Culture and Leisure Services were indicating a positive variance of £123,000.  Service expenditure on Leisure was forecasting a positive variance of £125,000 through reduced management fees, while the Haworth Art Gallery was predicting an adverse variance of £2,000 due to increased expenditure on staff of £6,000, and £16,000 of additional expenditure less £18,000 additional income.

Planning & Transportation were predicting an adverse variance for the year of £187,000.  This was due to predicted unfinanced additional spend on agency / salary costs of £144,000, £27,000 of extra miscellaneous costs and £16,000 forecast fee income shortfall.

Regeneration & Property Services were predicting an adverse variance of £62,000 at year-end.  This was due to £26,000 of additional staffing costs, £87,000 of increased costs largely due to external consultancy fees and costs associated with empty / void investment properties. These additional costs are offset by increased fee income for Disabled Facility Grant works undertaken and one-off additional income from reclaimable premises insurances totalling £51,000.

Policy & Corporate Governance were predicting an adverse variance of £50,000.  This was due to Staffing Costs exceeding Budget by £118,000 which included the Corporate Saving Target of £101,000.  These adverse variances were offset by £131,000 of other savings, mainly from insurances and housing benefit costs plus increased income of £38k.

Non Service Items were predicting a positive variance for the year of £501,000.  This was due to forecast savings on borrowing and leasing costs of £301,000 plus additional Treasury investment income of £200,000 due to utilising new investment funds and the increase in interest rates available.

The Council was facing a period of inflationary pressure, particularly in relation to energy and fuel costs and the national pay award for Local Government Employees.  The current forecast included the latest assumptions around these developments but the situation remained volatile.  Any significant changes in the underlying Budget assumptions that impacted the overall outturn forecast would be reported at the next Cabinet meeting.

As in the previous two years, if there was a spike in COVID-19 that required the Council to take action to prevent the spread of the virus or to provide additional support to the local community, it was expected that additional funding provided by Government would be used to meet any additional costs the Council incurred.

There were no alternative options for consideration or reasons

Resolved                                    -    That Cabinet notes the report and asks Corporate Management Team to continue to reduce expenditure and increase income so as to further improve the overall financial position of the Council over the remaining months of the year.