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
 |
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 -£0.264m, compared to the approved profiled budget of -£0.235m, representing an underspend of £0.029m.
Part C: Capital budget – Q3 2022/23
· Capital expenditure at the end of Quarter 3 was £1.634m against a total budget of £1.963m.
·
 |
|||
 |
|||
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 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.
ERL Revenue Budget & Outturn – Quarter 3
ERL 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 ERL PAC is -£0.264m, compared to the approved profiled budget of -£0.235m, representing an underspend of £0.029m.
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:
|
|
Positive Variance Q3 |
Adverse Variance Q3 |
Year End Forecast Variance |
|
Economic Regeneration & Leisure Committee |
£000 |
||
|
Innovation Centre – As reported previously there is an overspend on business rates for empty offices. There have also been additional maintenance costs incurred which were not anticipated when the building was opened. No allowance has yet been made for Non-Domestic Rates paid in advance from October 2022 to March 2023. Once this has been adjusted this will show a breakeven financial position. |
|
-82 |
-104 |
|
Lockmeadow Complex – This variance reflects an increase in rental income from the units at the complex. However, further energy costs are anticipated before the end of the financial year. |
92 |
|
-10 |
|
Business Terrace Expansion (Phase 3) – Not all the units are occupied, and it is anticipated that this will continue to be the case for the remainder of the year. |
|
-47 |
-60 |
|
Market – Income for lettings for all streams are down against the budget. |
|
-38 |
-50 |
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 3 stage is presented in Table 3 below. The budget includes resources brought forward from 2021/22 and is the revised estimate for 2022/23.
ERL Capital Programme 2022/23 (@ Quarter 3)
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 £300,000 more than initially budgeted for. Funding has been identified for this overspend.