Agenda item

Report attached.

Members considered a report of Councillor Joyce Plummer, Portfolio Holder for Resources, providing information on the financial spending of the Council up to the end of January 2023 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 £129,000.  The figure reflected the higher than anticipated staff pay award and raised energy costs.  Energy costs across the Council’s estate were being closely monitored.  However, good financial management and some financial support from the Government had helped.  Inflationary pressures during the year were being managed carefully by budget holders.

Councillor Munsif Dad enquired about the progress towards making weekend burials available and whether the underspend within the Parks and Cemetery Service could expedite this.  The Leader responded that tenders had now been returned for this proposal.  The Head of Service would now evaluate the replies.  Matters such as appropriate fees and charges, health and safety issues and maintaining standards would need to be considered.  It was possible that there would be a premium charge for this service.  Councillor Dad indicated that other Lancashire authorities provided this type of service and its users were generally prepared to pay a premium.

Councillor Dad also highlighted the issue of dog fouling in cemeteries.  The matter had been discussed before and it was acknowledged that most dog owners were responsible, but complaints continued to be received.  The Leader accepted that dog fouling did still occur.  A small minority of irresponsible owners caused problems in cemeteries, as well as on playgrounds and sports pitches.  There were numerous areas available for exercising dogs responsibly.  Many people owned dogs and ownership often fulfilled a vital social role as the animals were valued companions, particularly for widowed residents.  Councillor Harrison commented that foxes were potentially to blame for some of the fouling.  However, it was noted that people were less concerned about issues caused by wildlife.

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 £12,205,000 compared to a Budget of £12,334,000.  This forecast produced a positive variance of £129,000 by the end of the financial year.

Environmental Services were predicting a year-end adverse variance of £273,000 and the main variances were as follows:

• Waste Services were predicting an adverse variance for the year of £176,000.  This was due to £65,000 of additional staffing costs, £125,000 of increased costs in vehicle fuel and waste supplies and additional income of £14,000.

• The Parks & Cemetery Service was forecasting a positive variance of £68,000, due to additional income of £209,000 largely from burials and cremations netted off by other vehicles and supplies and services costs of £148,000 and staffing savings of £6,000.

• The Town Centre & Market Budget was predicting an adverse variance of £27,000, with £32,000 of additional staffing costs and savings on supplies and service of £5,000.

• Other Environmental Health and Maintenance services were predicting an adverse variance of £138,000 due to reduced income of £72,000 and increased operating costs largely around vehicles and depots of £50,000, plus additional staffing costs of £16,000.

Culture and Leisure Services were indicating a positive variance of £106,000.  Service expenditure on Leisure was forecasting a positive variance of £120,000 through reduced management fees, while the Haworth Art Gallery was predicting an adverse variance of £14,000 due to increased expenditure on staff.

Planning & Transportation were predicting an adverse variance for the year of £257,000.  This was due to predicted unfinanced additional spend on agency / salary costs of £163,000, £26,000 of extra miscellaneous costs and £68,000 forecast fee income shortfall.

Regeneration & Property Services were predicting an adverse variance of £78,000 at year-end.  This was due to £43,000 of additional staffing costs, £93,000 of increased costs largely due to external consultancy fees and costs associated with empty / void investment properties.  These additional costs were offset by increased fee income for Disabled Facility Grant works undertaken and one-off additional income from reclaimable premises insurances totalling £59,000.

Policy & Corporate Governance were predicting a positive variance of £129,000.  Housing Benefit costs were predicted to be £313,000 lower than budget and additional court fees income of £98,000 was projected.  This offset the corporate savings target of £101,000, additional staffing costs of £51,000 and increased costs in various areas as follows: External audit fees £42,000, Banking fees £36,000, ICT supplies and services £30,000, additional costs relating to the by-election £39,000.  There were numerous other smaller variances that net to a saving of £17,000.

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.  The contracts for electricity supply had been renewed from 1^st October 2022 and had resulted in large increases of over 150%, although the effect had not yet been felt in full because the Government had provided a compensation scheme up to 31^st March 2023.  The gas contracts were due to be renewed in October 2023.  The budget for 2023/24 assumed large increases of 200% although the situation remained volatile as there had been a recent reduction in prices.

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.