Appendix 1


First Quarter Financial Update 2022/23
Economic Regeneration & Leisure – Policy Advisory Committee
4th October 2022
Lead Officer:  Mark Green
Report Author: Paul Holland






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 APart B

Executive Summary & Overview


This report provides members with the financial position as at 30th June 2022, covering activity for the Economic Regeneration & Leisure Policy Advisory Committee’s (ERL 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 4 are as follows:

Part B: Revenue budget – Q1 2022/23

·         Overall net expenditure at the end of Quarter 1 for the services reporting to this committee is   -£0.506m, compared to the approved profiled budget of -£0.518m, representing an overspend of £0.012m.

Part C: Capital budget – Q1 2022/23

·         Capital expenditure at the end of Quarter 1 was £0.698m against a total budget of £2.556m.








Part B
First Quarter Revenue Budget 2022/23





















B2)  Revenue Budget 

B1.1  The table below provides a detailed summary on the budgeted net income position for ERL 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). An analysis by the relevant Lead Members for this Committee is also shown.

ERL Revenue Budget & Outturn – Quarter 1





ERL 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 ERL PAC is -£0.506m, compared to the approved profiled budget of -£0.518m, representing an overspend of £0.012m.

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:                                  



Positive Variance





Year End Forecast Variance

Economic Regeneration & Leisure Committee


Innovation Centre – When the budget for the centre was established no allowance was made for empty business rates as it had been assumed that funding from retained business rates from the other businesses on the site would cover these costs. At this stage it is not clear if there is sufficient funding available, but officers will continue to review the position and see if further funding can be identified.




Lockmeadow – At present the Council are paying the service charges for the food hall tenants. Due to increased utility costs the charges are now higher than had originally been anticipated.





















Part C
First Quarter Capital Budget 2022/23












B1)  Capital Budget: Economic Regeneration & Leisure Committee (ERL)

B1.1  The position of the 2022/23 ERL 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.

ERL Capital Programme 2022/23 (@ Quarter 1)

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

         Mote Park Visitor Centre – There have been some unanticipated costs that mean the project will cost around £150,000 more than initially budgeted for. Funding has been identified for this overspend.

         Mote Park Lake Dam Works – This project is substantially complete with the only costs remaining being the retention payment due next year of £13,000.

         Riverside Walk Works – Proposals are still being developed and there will be no spend this year.