Appendix 1

 

 

 

 

 

 

Part A: Executive Summary & Overview                                 Page 2     

 

Part B: Revenue Budget Q2 2022/23

B1)    Revenue Budget                                                             Page 5

 

Part C: Capital Budget Q2 2022/23

C1)     Capital Budget                                                                Page 9 

 

 

 

 

 

 

 

 

 

 

Part B

 

This report provides members with the financial position as at 30^th September 2022, covering activity for the Communities, Housing & Environment Policy Advisory Committee’s (CHE PAC) revenue and capital accounts for the second 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 2 are as follows:

Part B: Revenue budget – Q2 2022/23

·         Overall net expenditure at the end of Quarter 2 for the services reporting to this committee is   £4.351m, compared to the approved profiled budget of £4.037m, representing an underspend of £0.315m. However, the forecast for the end of the year shows a projected overspend of £0.455m.

Part C: Capital budget – Q2 2022/23

·         Capital expenditure at the end of Quarter 2 was £6.558m against a total budget of £20.080m.

 

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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 2. 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 2

 

 

 

CHE Revenue Budget & Outturn – Quarter 2 (By Lead Member)

B1.2  The table shows that at the end of the second quarter overall net expenditure for the services reporting to CHE PAC is £4.351m, compared to the approved profiled budget of -£4.037m, representing an underspend of £0.315m. However, the forecast for the end of the year shows a projected overspend of £0.455m.

B1.3  The table indicates that in certain areas, significant variances to the budgeted income levels have emerged during the second 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 Q2	Adverse Variance Q2	Year End Forecast Variance
Communities, Housing & Environment Committee	£000
Public Conveniences – This variance relates to a growth item for the cost of the new toilets at Mote Park. These are not yet open, so the budget is unspent. There is no confirmed handover date, the forecast assumes it will be in December.	70		95
Household Waste Collection – The overspend relates to additional bin purchases and the costs of a consultant for the waste contract renewal.		-26	-60
Recycling Collection – There has been additional income from green bin hire.	42		65
Homeless Temporary Accommodation – There has been a significant increase in the demand 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 currently looking at how the Homefinder scheme can help boost access to more private letting.		-258	-599

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 2 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 2)

 

 

 

 

 

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, as house prices start to retreat from the elevated levels reached during Summer 2022.

Private Rented Sector Housing Programme/1,000 Homes Affordable Housing Programme – A number of schemes are at various stages of development at this stage. 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.

The overspend shown against the 1,000 Homes Affordable Housing Programme Indicative Schemes budget reflects two proposed acquisitions which should take place in the third quarter. There are projected underspends against other projects this year which will cover this cost, and the cost is factored into the overall five-year programme.

Market Sale Housing Programme – Heather House & Pavilion Building – A planning application has been submitted and will be considered later this month. Subject to approval work is expected to start on site next year.

Granada House Refurbishment Works – A procurement process for the works is under way.  It is hoped that works will commence before the end of the financial year, with any unused funding being carried forward into 2023/24.

Crematorium & Cemetery Development Plan – It was identified earlier this year that there was an urgent need to resurface some of the footpaths at the cemetery, which is why this budget is showing as overspent. Funding for this work will come from income at the crematorium, which is performing above the budgeted level this year.