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Appendix 1
Part A: Executive Summary & Overview Page 2
Part B: Revenue Budget Q3 2022/23
B1) Revenue Budget Page 5
Part C: Capital Budget Q3 2022/23
C1) Capital Budget Page 9
Part
B
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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 3 are as follows:
Part B: Revenue budget – Q3 2022/23
· Overall net expenditure at the end of Quarter 3 for the services reporting to this committee is £6.643m, compared to the approved profiled budget of £6.986m, representing an underspend of £0.343m. However, the forecast for the end of the year shows a projected overspend of -£0.289m.
Part C: Capital budget – Q3 2022/23
· Capital expenditure at the end of Quarter 3 was £8.391m against a total budget of £20.589m.
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B2) Revenue Budget
B1.1 The table below provides a detailed summary of the budgeted net income position for CHE PAC services at the end of Quarter 3. The financial figures are presented on an accruals basis (e.g., expenditure for goods and services received, but not yet paid for, is included). An analysis by the relevant Lead Members for this Committee is also shown.
CHE Revenue Budget & Outturn – Quarter 3
CHE Revenue Budget & Outturn – Quarter 3 (By Lead Member)
B1.2 The table shows that at the end of the third quarter overall net expenditure for the services reporting to CHE PAC is £6.643m, compared to the approved profiled budget of £6.986m, representing an underspend of £0.343m. However, the forecast for the end of the year shows a projected overspend of -£0.289m.
B1.3 The table indicates that in certain areas, significant variances to the budgeted income levels have emerged during the third 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:
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Positive Variance Q3 |
Adverse Variance Q3 |
Year End Forecast Variance |
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Communities, Housing & Environment Committee |
£000 |
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Cemetery – Income is greater than forecast, and it is proposed to use some of this to install a music and webcast system in the chapel when it re-opens. |
55 |
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25 |
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Crematorium – Income is higher than forecast due to a continuing high level of demand for the service, with the death rate being higher than normal recently. |
129 |
|
127 |
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Public Conveniences - This variance relates to a growth item for the cost of the new toilets at Mote Park, which have only just opened. |
95 |
|
95 |
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Household Waste Collection - The overspend relates to additional bin purchases and the costs of a consultant for the waste contract renewal. |
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-64 |
-90 |
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Commercial Waste Services – Income from internal MBC customers has increased, as has the demand from trade sacks from external customers. |
35 |
|
48 |
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Recycling Collection – There has been additional income from green bin hire. |
38 |
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50 |
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Homelessness Temporary Accommodation – Demand continues to be high for temporary accommodation, and this is due mainly to the rise in the cost of living over the last few months. There are also issues with getting people out of temporary accommodation as soon as possible, this has proved very difficult. Housing are looking at how the Homefinder scheme can help boost access to more private letting. |
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-508 |
-735 |
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Salaries - This variance broadly reflects vacant posts throughout the year, after taking into account projected slippage. |
227 |
|
115 |
B1) Capital Budget: Communities, Housing & Environment Committee (ERL)
B1.1 The position of the 2022/23 CHE element of the Capital Programme at the Quarter 3 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 3)
B1.2 Comments on the variances in the table above are as follows:
Disabled Facilities Grant Funding - The time taken to approve DFG payments has improved significantly, with the average time reducing from 50 days to 11 days. A review of the DFG process has been completed by an independent organisation and the recommendations have either been implemented or informed the new Housing Renewal Policy 2023. The draft policy is due to be considered by CHE PAC in February 2023 before adoption by the Executive. The new working practices and policy will provide for a better experience for our residents and see further improvements in the delivery of grants.
Temporary Accommodation - This is the funding for the latest phase of property acquisitions to provide accommodation for temporarily homeless families and persons. There has been one acquisition to date this year and other properties are being actively pursued as house prices start to retreat from the elevated levels reached during Summer 2022.
Private Sector Rented Housing Programme/ 1,000 Homes Affordable Housing Programme
A number of schemes are at various stages of development at this stage, and further land/property acquisitions are likely to take place before the end of March. 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.
Flood Action Plan - At this stage there are no plans to spend this budget, and it will be carried forward to 2023/24.