Agenda item

To consider the Third Quarter Revenue and Capital Budget monitoring report for 2023/24 for the General Fund and Housing Revenue Account.

The Executive considered a report in respect of the third quarter monitoring of the Revenue and Capital budgets 2023/24 (General Fund and Housing Revenue Account).

The Chair advised Members of a correction to the table contained in Paragraph 4.2.3 of the report.  The figure in the “Less core resources at Budget Setting Report” row should read “(12,380)” instead of “(12,335)”, and hence the figure in the “Transfer (to)/from General Fund balances” rows should read “1,363” instead of “£1,408”.

It was RESOLVED:

General Fund

1.          That the 2023/24 3^rd Quarter projected net increase in General Fund expenditure of £171,980 be approved.

2.          That it be noted that the cumulative changes made to the General Fund net budget remains within the £400,000 increase variation limit delegated to the Executive.

3.          That note the proposed movement on reserves, as detailed in Paragraph 4.2.1 of the report, be noted.

Housing Revenue Account (HRA)

4.          That the 2023/24 3rd Quarter net increase in HRA expenditure of £1.002Million be approved.

5.          That it be noted that the cumulative increases made to the HRA net budget remains within the £400,000 variation limit delegated to the Executive.

Capital Programme

6.          That the General Fund capital budget re-phasing of £10.6Million from 2023/24 to future years be approved.

7.          That the Housing Revenue Account capital budget re-phasing of £2.3Million from 2023/24 to future years be approved.

Reason for Decision:  As contained in report.

Other Options considered:  As contained in report.

The Executive considered a report in respect of the third quarter monitoring of the Revenue and Capital budgets 2023/24 (General Fund and Housing Revenue Account).

In the absence of the Portfolio Holder for Resources and Transformation, the Chair (Deputy Leader and Portfolio Holder for Housing & Housing Development) advised that the General Fund was showing an increase in expenditure for the year of £171,980.  As set out in Section 4.1 of the report, this was made up of a number of variances, but predominately from the reduction in capitalisation of Property staff salaries of £200,000.  This change was due to the focus of the team switching to work more on revenue activity, such as the garages and commercial stock.  Going forward, this pressure had already been included within the 2024/25 General Fund budget approved by Council in February 2024.  Members were also requested to approve a £162,897 transfer to reserves, as highlighted in Section 4.2 of the report.

In respect of the Housing Revenue Account (HRA), the Chair stated that this was showing a net increase in expenditure of £1,002,450, mainly due to challenges in dealing with the complexity and the conditions of void properties in the housing stock.  This could be seen from the average unit price, which was forecast to be £3,300 at the beginning of the year, but was now projected at £5,000 per property, noting that a considerable volume of properties had become void over the year.  A full breakdown could be found in Section 4.5 of the report.

In conclusion, the Chair explained that the report requested the Executive to approve re-phasing of £10.6Million of General Fund and £2.3Million of HRA capital budgets from 2023/24 into future years.  The General Fund changes mainly related to Towns Fund projects, implementing the exciting SG1 joint venture to deliver the first phase, and garages refurbishment.  For the HRA, this related to Housing investment and health and safety works.  A full breakdown could be found in Section 4.7 of the report.

The Chair advised Members of a correction to the table contained in Paragraph 4.2.3 of the report.  The figure in the “Less core resources at Budget Setting Report” row should read “(12,380)” instead of “(12,335)”, and hence the figure in the “Transfer (to)/from General Fund balances” rows should read “1,363” instead of “£1,408”.

It was RESOLVED:

General Fund

1.          That the 2023/24 3^rd Quarter projected net increase in General Fund expenditure of £171,980 be approved.

2.          That it be noted that the cumulative changes made to the General Fund net budget remains within the £400,000 increase variation limit delegated to the Executive.

3.          That note the proposed movement on reserves, as detailed in Paragraph 4.2.1 of the report, be noted.

Housing Revenue Account (HRA)

4.          That the 2023/24 3rd Quarter net increase in HRA expenditure of £1.002Million be approved.

5.          That it be noted that the cumulative increases made to the HRA net budget remains within the £400,000 variation limit delegated to the Executive.

Capital Programme

6.          That the General Fund capital budget re-phasing of £10.6Million from 2023/24 to future years be approved.

7.          That the Housing Revenue Account capital budget re-phasing of £2.3Million from 2023/24 to future years be approved.

Reason for Decision:  As contained in report.

Other Options considered:  As contained in report.