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Part A: Fourth Quarter Revenue Budget 2023/24

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A1)�� Revenue Budget��

A2)�� Significant Variances��

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Part B: Fourth Quarter Capital Budget 2023/24��

B1)�� Capital Budget��

B2) �� Significant Variances��

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Part A - Fourth Quarter Revenue Budget 2023/24 A1)� Revenue Budget: Planning and Healthier Stronger Communities (PHSC) PAC

A2.1� The table below provides a detailed summary of the budgeted net expenditure position for the services reporting directly into PHSC PAC at the end of Quarter 4. The financial figures are presented on an accruals basis (i.e. expenditure for goods and services received, but not yet paid for, is included).

A2.2� This table now shows the variance split between expenditure and income to give more of an insight into the nature of the variance.

PHSC PAC Revenue Budget: NET EXPENDITURE (@ 4^th Quarter 2023/24)

A2)� PHSC PAC Revenue Budget: Significant Variances

A2.1� Within the headline figures, there are a number of both adverse and favourable net expenditure variances for individual cost centres. It is important that the implications of variances are considered at an early stage, so that contingency plans can be put in place and, if necessary, be used to inform future financial planning.� Variances will be reported to each of the Policy Advisory Committees on a quarterly basis throughout 2023/24.

A2.2� The table below highlights and provides further detail on the most significant variances at the end of Quarter 4.

	Positive Variance Q4	Adverse Variance Q4
Planning and Healthier Stronger Communities	�000
Leisure Centre � The overspend in this area relates principally to the Lockmeadow Health Club.� This was operated by David Lloyd until their lease expired in May 2023.� The Council then took it over and engaged Serco to operate it as an extension to the contract for running the Leisure Centre.� Membership income has had to be rebuilt and running costs have exceeded expectations, with a higher staffing requirement than was anticipated and substantial expenditure to bring the facilities up to an acceptable standard. There has also been an overspend at the Mote Park leisure centre relating to additional utility costs. Under the terms of the existing contract with Serco, when utility costs rise above a specified level the Council is liable to meet the difference.� This threshold is to be re-based when a contract extension commences in August 2024.		-729
Development Control Advice - Income from Planning Performance Agreements and pre-application planning advice has continued to be significantly down on budget. The Head of Service states that this is because developers have waited for the new Local Plan to be adopted before progressing with further applications.		-149
Development Control Appeals � There were a number of significant appeals this year which led to an overspend on this budget. There are sums set aside to use where there are significant appeals costs but as this overspend can be contained within the Council�s overall budget it is not proposed to draw down on these.		-113

Development Control Majors - Income from major applications continued to be significantly down this year.� This is said to be for the same reason as income from development control advice is below budget, i.e. developers have waited for the new Local Plan to be adopted before progressing with further applications.�		-80
Development Control Other � Having been in line with budget for the first three quarters, income from minor applications reduced in the final quarter.� There were increased running costs from the use of an external agency to process planning applications during the first half of the year.		-120
Lockmeadow Complex - A number of units at the complex have fallen vacant during the period, leading to a shortfall against budget. The Corporate Property team has been active in seeking to find new tenants for vacant units.� A tenant offering virtual reality experiences moved into one of the vacant units during 2023/24. The former David Lloyd unit now operates as the Lockmeadow Health Club, under the same management as the council�s leisure centre.� However, the former Frankie & Benny�s and Feathers units remain vacant.� New letting agents have been taken on to identify potential tenants, recognising that changes in the leisure and hospitality market mean that different approaches and different types of tenant need to be considered.�		-733

Part B - Fourth Quarter Capital Budget 2023/24

B1)� Capital Budget 2023/24 (@ 4^th Quarter 2023/24)

B2)� Capital Budget Variances (@ 4th Quarter 2023/24)

Planning and Healthier Stronger Communities
Museum Development Plan - Further works took place in the new Archaeology Gallery in the final quarter, which took the cost of the project over the approved budget for the year in the capital programme. However, this was anticipated as external funding had been secured to cover these costs.
Leisure Provision - The extension to the contract for the management of the centre was agreed earlier in the year, and there was the possibility of some of the planned capital works starting in the final quarter, but these did not happen, and the unused budget will be rolled forward into 2023/24.
Riverside Walk Works - This project has now been subsumed into plans for Town Centre improvement works, including upgrades to lighting in the Town Centre.� The budget will therefore be carried forward to 2024/25.
Bridges Gyratory Scheme - Plans are in place for the construction of a flood barrier at the bottom of Medway Street as the final element of the Bridges Gyratory Scheme.� It has unfortunately proved a slow process getting the necessary approvals for the barrier, as it will be situated on highways land.� It is envisaged that construction will take place this autumn.
Public Realm & Greening relating to the Town Centre - The current strategy is being developed and is likely to be adopted in the near future.

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