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Appendix 1

 

 

 

 

 

 

Part A: Executive Summary & Overview                                 Page 2     

 

Part B: Revenue Budget Q1 2021/22

B1)    Revenue Budget                                                             Page 5

 

Part C: Capital Budget Q1 2021/22

C1)     Capital Budget                                                                Page 9 

 

 

 

 

 

 

 

 

 

 

Part B

 

This report provides members with the financial position as at 30 June 2021, covering activity for both the Council as a whole and this committee’s revenue and capital accounts for the first quarter of 2021/22.

Members will be aware of the significant uncertainty in the 2021/22 budget estimates arising from the ongoing impact of the Covid-19 pandemic, both in relation to demands on the Council to respond and the speed of local economic recovery.  Financial support from central government received during 2020/21 continues to support specific activities, and the unringfenced Covid-19 grant of £860,000 will be used to support recovery and renewal activities.

In addition, the Council will shortly be applying for the final round of funding under the government’s sales, fees and charges compensation scheme covering income losses between April – June 2021 measured against the 2020/21 income budget.  This is expected to be the final allocation of unringfenced Covid-19 funding from central government.

The headlines for Quarter 1 are as follows:

Part B: Revenue budget – Q1 2021/22

·         Overall net expenditure at the end of Quarter 1 for the services reporting to this committee is   -£0.350m, compared to the approved profiled budget of £0.209m, representing an underspend of £0.558m.

Part C: Capital budget – Q1 2021/22

·         Capital expenditure at the end of Quarter 1 was £1.737m against a total budget of £27.166m. Forecast spend for the year is £10.848m.

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B2)  Revenue Budget 

B1.1  The table below provides a detailed summary on the budgeted net income position for CHE services at the end of Quarter 1. The financial figures are presented on an accruals basis (e.g. expenditure for goods and services received, but not yet paid for, is included). 

CHE Revenue Budget & Outturn – Quarter 1

B1.2  The table shows that at the end of the first quarter overall net expenditure for the services reporting to SPI is -£0.350m, compared to the approved profiled budget of £0.209m, representing an underspend of £0.558m.

B1.3  The table indicates that in certain areas, significant variances to the budgeted income levels have emerged during the first quarter of the year. The reasons for the more significant variances are explored in section B2 below.

B2)  Variances

B2.1  The committee was impacted by the effects of Covid-19. Income from the Crematorium continues to be high due to the ongoing demand for the service, and while demand for temporary accommodation continues there has been a reduction in the cost of providing the service because of the properties that the Council has purchased to specifically deal with this issue.                                                                                                       

 

	Positive Variance Q1	Adverse Variance Q1	Year End Forecast Variance
Communities, Housing & Environment Committee	£000
Crematorium – There continues to be a higher than normal level of demand for the service, and memorial sales are also higher than forecast. It should be noted that the recent rises in gas prices may push up operating costs and this could potentially reduce the forecast year-end variance.	40		80
Homeless Temporary Accommodation – Costs have reduced due to the increase on the Council’s own properties that were specifically purchased to deal with homeless families. Use has also been made of other Council and Maidstone Property Holdings properties.	36		94
Food & Safety Section – A number of Covid-related grants are held in this section that have yet to be spent. These are Test & Trace Support, Compliance & Enforcement and Test & Trace Door Knocking Service.	162		0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

B1)  Capital Budget: Communities, Housing & Environment Committee (CHE)

B1.1  The position of the 2021/22 CHE element of the Capital Programme at the Quarter 1 stage is presented in Table 3 below. The budget for 2021/22 includes resources brought forward from 2020/21.

CHE Capital Programme 2021/22 (@ Quarter 1)

B1.2  Comments on the variances in the table above are as follows:

Granada House Extension and Refurbishment Works – The rooftop extension is no longer going ahead. Some of this budget may be required for the refurbishment works should the cost of the works be greater than currently anticipated. These works are not scheduled to commence until towards the end of the year.          

Private Rented Sector Housing and Affordable Housing Programmes – The housing team are working on various projects which are currently at different stages. Expenditure is very much indicative at this stage and expected to increase during the last two quarters of the year once schemes have progressed further and new ones are potentially secured.

Acquisitions Officer Social Housing Delivery Partnership – The overspend is due to an extra resource being required with two acquisition officers now being in post to help deliver the housing capital programme, both of which have had contract extensions. Funding for this will be identified.

Gypsy & Traveller Sites Refurbishment – The tenders for work have come in at £1.8m, which is significantly above the budget for the scheme. It was recommended to Policy & Resources Committee that additional funding of £0.9m be approved from the affordable housing programme budget, which will include an allowance for an increase in the employer’s agents costs of £0.1m. The Committee asked for further information and this is addressed in a separate report on this evening’s agenda.