20 February 2023


3rd Quarter Financial Update & Performance Monitoring Report 2022/23





Planning & Infrastructure Policy Advisory Committee

20 February 2023



Will this be a Key Decision?



Not Applicable

Final Decision-Maker

Not Applicable – report for noting by the Planning & Infrastructure Policy Advisory Committee

Lead Head of Service

Mark Green, Director of Finance, Resources & Business Improvement

Lead Officer and Report Author

Paul Holland, Senior Finance Manager

Georgia Harvey, Senior Information Governance Officer

Orla Sweeney, Senior Policies & Communities Officer

Charlotte Yarnold, Programme Manager (Strategic Planning)



Wards affected



Executive Summary


This report sets out the 2022/23 financial and performance position for the services reporting into the Planning & Infrastructure Policy & Advisory Committee (PI PAC) as at 31st December 2022 (Quarter 3). The primary focus is on:


•        The 2022/23 Revenue and Capital budgets; and


•         The 2022/23 Key Performance Indicators (KPIs) that relate to the delivery of the Strategic Plan 2019-2045.


The combined reporting of the financial and performance position enables the Committee to consider and comment on the issues raised and actions being taken to address both budget pressures and performance issues in their proper context, reflecting the fact that the financial and performance-related fortunes of the Council are inextricably linked.


The budgets used in this report are the revised estimates for 2022/23.


Budget Monitoring


Overall net expenditure at the end of Quarter 3 for the services reporting to PI PAC is  

-£0.102m, compared to the approved profiled budget of £0.595m, representing an underspend of £0.697m.


This Policy Advisory Committee has no capital projects.


Performance Monitoring


40% (4 of 10) targetable quarterly key performance indicators reportable to the Strategic Planning & Infrastructure Committee achieved their Quarter 3 target.


Recovery & Renewal Update


A number of actions across the three areas of focus in the Recovery and Renewal Action have now been completed. This is show in the update at Appendix 3.


UK Shared Prosperity Fund Update


An update on progress made against schemes using this funding is shown at Appendix 4.



Purpose of Report


The report enables the Committee to consider and comment on the issues raised and actions being taken to address both budget pressures and performance issues as at 31st December 2022.



This report makes the following recommendations to the Planning & Infrastructure Policy Advisory Committee:


1.   That the Revenue position as at the end of Quarter 3 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 3 be noted; and


3.   That the Performance position as at Quarter 3 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 Recovery & Renewal Update, attached at Appendix 3 be noted.


5.   That the UK Shared Prosperity Fund update, attached at Appendix 4 be noted.



3rd Quarter Financial Update & Performance Monitoring Report 2022/23







Impact on Corporate Priorities

This report monitors actual activity against the revenue budget and other financial matters set by Council for the financial year.  The budget is set in accordance with the Council’s Medium-Term Financial Strategy which is linked to the Strategic Plan and corporate priorities.


The Key Performance Indicators and strategic actions are part of the Council’s overarching Strategic Plan 2019-45 and play an important role in the achievement of corporate objectives. They also cover a wide range of services and priority areas.


Director of Finance, Resources and Business Improvement (Section 151 Officer)

Cross Cutting Objectives

This report enables any links between performance and financial matters to be identified and addressed at an early stage, thereby reducing the risk of compromising the delivery of the Strategic Plan 2019-2045, including its cross-cutting objectives.


Director of Finance, Resources and Business Improvement (Section 151 Officer)

Risk Management

This is addressed in Section 5 of this report.

Director of Finance, Resources and Business Improvement (Section 151 Officer)


Financial implications are the focus of this report through high level budget monitoring. Budget monitoring ensures that services can react quickly enough to potential resource problems. The process ensures that the Council is not faced by corporate financial problems that may prejudice the delivery of strategic priorities.


Performance indicators and targets are closely linked to the allocation of resources and determining good value for money. The financial implications of any proposed changes are also identified and taken into account in the Council’s Medium-Term Financial Strategy and associated annual budget setting process. Performance issues are highlighted as part of the budget monitoring reporting process.


Senior Finance Manager (Client)


The budget for staffing represents a significant proportion of the direct spend of the Council and is carefully monitored. Any issues in relation to employee costs will be raised in this and future monitoring reports.


Having a clear set of performance targets enables staff outcomes/objectives to be set and effective action plans to be put in place.


Director of Finance, Resources and Business Improvement (Section 151 Officer)


The Council has a statutory obligation to maintain a balanced budget and the monitoring process enables the Committee to remain aware of issues and the process to be taken to maintain a balanced budget.


There is no statutory duty to report regularly on the Council’s performance. However, under Section 3 of the Local Government Act 1999 (as amended) a best value authority has a statutory duty to secure continuous improvement in the way in which its functions are exercised, having regard to a combination of economy, efficiency and effectiveness. One of the purposes of the Key Performance Indicators is to facilitate the improvement of the economy, efficiency and effectiveness of Council services. Regular reports on Council performance help to demonstrate best value and compliance with the statutory duty.


Senior Lawyer (Corporate Governance), MKLS

Information Governance

The performance data is held and processed in accordance with the data protection principles contained in the Data Protection Act 2018 and in line with the Data Quality Policy, which sets out the requirement for ensuring data quality. There is a program for undertaking data quality audits of performance indicators.

Policy and Information Team


There is no impact on Equalities as a result of the recommendations in this report. An EqIA would be carried out as part of a policy or service change, should one be identified.


Equalities and Communities Officer

Public Health



The performance recommendations will not negatively impact on population health or that of individuals.

Public Health Officer

Crime and Disorder

There are no specific issues arising.

Director of Finance, Resources and Business Improvement (Section 151 Officer)



Performance Indicators and Strategic Milestones monitor any procurement needed to achieve the outcomes of the Strategic Plan.


Director of Finance, Resources and Business Improvement (Section 151 Officer)


Biodiversity and Climate Change

The implications of this report on biodiversity and climate change have been considered and there are no direct implications on biodiversity and climate change.


Biodiversity and Climate Change Manager





2.1     The Medium-Term Financial Strategy for 2022/23 to 2026/27 - including the budget for 2022/23 - was approved by full Council on 23rd February 2022. This report updates the Committee on how its services have performed over the last quarter with regard to revenue and capital expenditure against approved budgets.                                                                                                           

2.2     This report also includes an update to the Committee on progress against its Key Performance Indicators (KPIs).                                                                      

2.3     Attached at Appendix 1 is a report setting out the revenue and capital spending position at the Quarter 3 stage. Attached at Appendix 2 is a report setting out the position for the KPIs for the corresponding period.         Attached at Appendix 3 is an update on progress against the Recovery & Renewal Plan and attached at Appendix 4 is an update on the UK Shared Prosperity Fund.                                                                                                                         

2.4     We have reviewed the spend against projects planned as part of the Recovery and Renewal Action Plan.  The following projects will not spend all or part of their allocated funds and therefore require a reallocation of funding.


       Vibrant Economy - Mid Kent College skills hub – £60k. 

•    Resilient Communities - Support and Encourage Volunteering in the Borough – reallocate £11,583 (out of original £25K)

•    The Way We Work - Embedding new ways of working and ensuring the office is fit for purpose £30k (out of original £50k)


The amount to be reallocated is £101,583.  It is proposed that this money is redistributed to two successful projects already in the plan.


•    Resilient Communities – Community Resilience Fund -£52,083

•    Resilient Communities – Extension of Let’s Talk Maidstone on a three-year subscription – £49,500


The full details of this proposal are shown in Appendix 3 to this report.






3.1     There are no matters for decision in this report.  The Committee is asked to note the contents but may choose to comment.







4.1     In considering the current position on the Revenue budget, the Capital Programme, and the KPIs at the end of December 2022, the Committee can choose to note this information or could choose to comment.                                                                                      

4.2     The Committee is requested to note the content of the report.




5.       RISK

5.1     This report is presented for information only and has no direct risk management implications.                                                                                        

5.2     The Council produced a balanced budget for both revenue and capital income and expenditure for 2022/23. The budget is set against a continuing backdrop of limited resources and a difficult economic climate, even before the impact of the Covid-19 pandemic became clear. Regular and comprehensive monitoring of the type included in this report ensures early warning of significant issues that may place the Council at financial risk. This gives the Executive the best opportunity to take actions to mitigate such risks.




6.1     The KPIs update (“Performance Monitoring”) are reported to the Policy Advisory Committees (PAC) quarterly: Communities, Housing & Environment PAC; Economic Regeneration & Leisure PAC; and the Planning & Infrastructure PAC. Each committee also receives a report on the relevant priority action areas. The report was also presented to the Corporate Services PAC, reporting on the priority areas of “A Thriving Place”, “Safe, Clean and Green”, “Homes and Communities” and “Embracing Growth and Enabling Infrastructure”.






7.1     The Quarter 3 Budget & Performance Monitoring reports are being considered by the relevant Policy Advisory Committees during February 2023.                             





·         Appendix 1: Third Quarter Budget Monitoring 2022/23

·         Appendix 2: Third Quarter Performance Monitoring 2022/23

·         Appendix 3: Recovery & Renewal Update 2022/23

·         Appendix 4: UK Shared Prosperity Fund Update 2022/23