Appendix 1
Part A: Executive Summary & Overview Page 2
Part B: Revenue Budget Q4 2022/23
B1) Revenue Budget Page 4
Part C: Capital Budget Q4 2022/23
C1) Capital Budget Page 10
Part
B
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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 was 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 increased and looks to continue to remain high for some time and is having an impact on contract and energy costs, so the unused contingency has been carried forward. We are also seeing increased demands in temporary accommodation which is linked to the financial economy. These pressures have been offset by increased levels of income and some underspends giving an outturn position which is a small underspend. The significant under and overspends have been reflected in the budget for 2023/24.
The headlines for Quarter 4 are as follows:
Part B: Revenue budget – Q4 2022/23
· Overall net expenditure at the end of Quarter 4 for the services reporting to this committee is £10.075m, compared to the approved profiled budget of £9.600m, representing an overspend of £0.475m.
Part C: Capital budget – Q4 2022/23
· Capital expenditure at the end of Quarter 4 was £11.280m against a total budget of £20.589m.
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B1) Revenue Budget
B1.1 The table below provides a detailed summary of the budgeted net income position for HHE PAC services at the end of Quarter 4. 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.
HHE Revenue Budget & Outturn – Quarter 4
HHE Revenue Budget & Outturn – Quarter 4 (By Cabinet Member)
B1.2 The table shows that at the end of the fourth quarter overall net expenditure for the services reporting to HHE PAC is £10.075m, compared to the approved profiled budget of £9.600m, representing an overspend of £0.475m.
B1.3 The table indicates that in certain areas, significant variances to the budgeted income levels have emerged during the fourth 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:
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Positive Variance Q4 |
Adverse Variance Q4 |
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Housing, Health & Environment Committee |
£000 |
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Crematorium – There has been a greater demand for service with the death rate being higher than normal. There has also been an increase in memorial sales. |
128 |
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Public Conveniences – The underspend relates to unused budgetary provision that was made for the new toilets in Mote Park which didn’t open until the end of December 2022. |
101 |
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Household Waste Collection – The overspend is due to additional bin purchases and the consultancy costs relating to the new waste collection contract. |
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-67 |
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Mote Park - This overspend was caused by a number of factors – increased water costs, increased trade waste charges and costs relating to the new Estate Services Building. |
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-52 |
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Homeless Temporary Accommodation - Demand has been high all year for temporary accommodation, and this is due mainly to the rise in the cost of living. There are also issues with getting people out of temporary accommodation as soon as possible, this has proved very difficult throughout the year. |
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-906 |
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Ulcombe Caravan Site (Water Lane) - This overspend was caused by increased service charges from Kent County Council. This was due to issues around rent collection, and increased charges for water and electricity. |
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-60 |
C1) Capital Budget: Housing, Health & Environment Committee (HHE)
C1.1 The position of the 2022/23 HHE element of the Capital Programme at the Quarter 4 stage is presented in Table 3 below.
HHE Capital Programme 2022/23 (@ Quarter 4)
B1.2 Comments on the variances in the table above are as follows:
Disabled Facilities Grant Funding - The time taken to approve DFG payments has improved significantly, with the average time reducing from 50 days to 11 days. A review of the DFG process has been completed by an independent organisation and the recommendations have either been implemented or informed the new Housing Renewal Policy 2023. The draft policy was considered and recommended for approval by CHE PAC in February 2023 before adoption by the Executive. The new working practices and policy will provide for a better experience for our residents and see further improvements in the delivery of grants.
Temporary Accommodation - This is the funding for the latest phase of property acquisitions to provide accommodation for temporarily homeless families and persons. There were only two acquisitions this year, due to the high level of house prices during the year. More acquisitions are taking place in 2023/24 as more properties have been identified at affordable prices.
Private Sector Rented Housing Programme/ 1,000 Homes Affordable Housing Programme
A number of schemes are at various stages of development, and further land/property acquisitions have taken place during the year. The variance relates mainly to larger scale schemes that have not progressed as far as was anticipated by the end of March. 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.
Flood Action Plan - At this stage there are no plans to spend this budget, and it will be carried forward to 2023/24.