Consideration was given to a report setting out the 2022/23 financial and performance position for the services reporting into the Executive as at 30 June 2022 (Quarter 1).  The primary focus was on the 2022/23 Revenue and Capital budgets, the 2022/23 Key Performance Indicators relating to the delivery of the Strategic Plan 2019/45 and the Corporate Risk Register. 

The Executive was also asked to consider the write-off of an irrecoverable Housing Benefits over-payment.

RESOLVED:

1.  That the Revenue position as at the end of Quarter 1 for 2022/23, including the actions being taken or proposed to improve the position, where significant variances have been identified, be noted.

2.  That the Capital position at the end of Quarter 1 for 2022/23 be noted.

3.  That the Performance position as at Quarter 1 for 2022/23, including the actions being taken or proposed to improve the position, where significant issues have been identified, be noted.

4.  That the Risk Update, attached at Appendix 3 to the report, be noted.

5.  That the Recovery & Renewal Update, attached at Appendix 4 to the report, be noted.

6.  That the irrecoverable Housing Benefits overpayment (£34,124), listed at Appendix 5 to the report, be written off.

See Record of Decision:

Your Councillors - Maidstone Borough Council

The Lead Member for Corporate Services introduced the report, stating that the Council was likely to achieve a balanced budget by the end of the 2022/23 financial year. The projected overspend relating to temporary accommodation, contained within the Lead Member for Housing and Health’s portfolio, was referenced.

The Lead Member for Corporate Services highlighted the ongoing rise in inflation. A £1.3 million contingency fund for this had been built into the Council’s budget for the current financial year. The impact of higher inflation rates on the overall cost of delivering the capital programme would be considered as part of the 2023/24 budget setting process. The importance of maintaining the Council’s baseline reserves of £4 million was reiterated, with specific attention drawn to the risk update contained within Appendix 3 to the report including that of ‘financial uncertainty’.

The Committee expressed concern over the increase in interest rates and the effect on the capital programme’s delivery. In response, the Lead Member for Corporate Services stated that the rise in interest rates was being monitored by the Council and that ensuring the Council’s finances were robust was important. The Executive’s commitment to delivering the 1000 Affordable Homes programme was reiterated.

The Director of Finance, Resources and Business Improvement stated that the Council had previously secured an £80 million loan from the Public Works Loan Board to support the capital programme’s delivery across the next two-to-four years. The interest rate secured was below 3%. As the capital programme totalled £230 million, if interest rates remained over 5% when further borrowing above and beyond the £80 million was required, the projects within the capital programme would have to be further considered before they were progressed.

In response to questions on the risk update provided at Appendix 3 to the report, the Lead Member for Corporate Services stated that the risks within were continuously monitored. It was noted that the report presented to the Committee covered the first quarter of the financial year, with the Committee receive further quarterly update reports.

The Committee welcomed the cautious approach shown to managing the Council’s finances. The importance of balancing the Council’s housing delivery against other housing objectives, such as the provision of Temporary Accommodation, was reiterated to ensure that service delivery was maintained whilst achieving a sound, robust financial position.

RESOLVED:

That the following be noted

1.  The revenue position as at the end of Quarter 1 for 2022/23, including the actions being taken or proposed to improve the position, where significant variances have been identified;

2.  The capital position at the end of Quarter 1 for 2022/23;

3.  The performance position as at Quarter 1 for 2022/23, including the actions being taken or proposed to improve the position, where significant issues have been identified;

4.  The risk update, attached at Appendix 3 to the report;

5.  The recovery and renewal update, attached at Appendix 4 to the report; and

That:

6.  The Executive be recommended to write-off the irrecoverable Housing Benefits overpayment listed at Appendix 5  ...  view the full minutes text for item 46