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Appendix 1

 

 

 

 

 

 

Part A: Executive Summary & Overview                                 Page 2     

 

Part B: Revenue Budget Q1 2022/23

B1)    Revenue Budget                                                             Page 5

 

Part C: Capital Budget Q1 2022/23

C1)     Capital Budget                                                                Page 9 

 

 

 

 

 

 

 

 

 

 

Part B

 

This report provides members with the financial position as at 30^th June 2022, covering activity for the Communities, Housing & Environment Policy Advisory Committee’s (CHE PAC) revenue and capital accounts for the first quarter of 2022/23.

In 2021/22, income recovered more strongly than expected from the pandemic and the Council generated a modest surplus compared with budget. For 2022/23, there is no more direct government funding to cover the costs of Covid, but the Council has been able to set a balanced budget. Additional provision of £1.3 million was made within the 2022/23 budget for the expected impact of higher inflation on the Council’s input costs.  The projected peak level of inflation has continued to increase since the budget was set and this is likely to have an impact in particular on contract and energy costs, so the requirement for this provision will be monitored carefully to assess whether it will be adequate.   If at any stage it appears that an overspend is likely, measures will need to be taken in-year to bring the budget back into balance.

The headlines for Quarter 1 are as follows:

Part B: Revenue budget – Q1 2022/23

·         Overall net expenditure at the end of Quarter 1 for the services reporting to CHE PAC is   £0.988m, compared to the approved profiled budget of £1.128m, representing an underspend of £0.140m. However, due to ongoing budget pressures the year-end forecast is projecting an overspend of £0.406m.

Part C: Capital budget – Q1 2022/23

·         Capital expenditure at the end of Quarter 1 was £1.906m against a total budget of £20.080m.

 

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B2)  Revenue Budget 

B1.1  The table below provides a detailed summary on the budgeted net income position for CHE PAC 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 PAC Revenue Budget & Outturn – Quarter 1

 

CHE Revenue Budget & Outturn – Quarter 1 (By Lead Member)

 

B1.2  The table shows that at the end of the first quarter overall net expenditure for the services reporting to CHE PAC is £0.988m, compared to the approved profiled budget of £1.128m, representing an underspend of £0.140m. However, due to ongoing budget pressures the year-end forecast is projecting an overspend of £0.406m.

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 most significant variances for this Committee are as follows:                                  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

B1.1  The position of the 2022/23 CHE element of the Capital Programme at the Quarter 1 stage is presented in Table 3 below. The budget for 2022/23 includes resources brought forward from 2021/22.

CHE  Capital Programme 2022/23 (@ Quarter 1)

 

 

 

 

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

Disabled Facilities Grants – Expenditure is historically less than the committed budget in each year, but unused funding is always carried forward allowing for works to be programmed in over the course of a number of years. A review of the DFG process is currently being undertaken and will feature in the draft new Housing Assistance Policy that will be delivered to the CHE PAC later in the year for commentary before being presented to the Executive.

Temporary Accommodation - This is the funding for the latest phase of property acquisitions to provide accommodation for temporarily homeless families and persons. There have been no acquisitions to date.  It is hoped to acquire more properties this year, but it is proving difficult to obtain properties at reasonable valuations given the current overheated housing market.

Private Rented Sector Housing Programme/1,000 Homes Affordable Housing Programme – A number of schemes are at various stages of development at this stage, the main one at present being the Springfield Library site. Expenditure is very much indicative at this stage and expected to increase during the remainder of the year once schemes that are currently at the feasibility stage have progressed further and new sites are potentially secured. Some schemes will also contain elements of both private rented and affordable housing so the costs may change depending on the mix at the sites where this happens.

Granada House Refurbishment Works – The procurement process for the works is now complete and it is anticipated that works will commence in January 2023 and will take 8 months to complete. The unused funding will be carried forward into 2023/24. The costs of the works are likely to exceed the approved budget of £2.0m, so further funding will need to be identified as part of the development of the capital programme for 2023/24 onwards.