Issue - meetings


Meeting: 07/09/2022 - Policy and Resources Committee (Item 48)

48 2022/23 BUDGET MONITORING FOR QUARTER ONE (1 APR – 30 JUN) pdf icon PDF 965 KB

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The Director of Resources introduced the report which set out the financial monitoring information for the Council as at quarter 1 (1 Apr – 30 Jun) of 2022/23 and provided Members with an overview of budget performance, including progress on the delivery of the 2022/23 saving programme and a summary of reserves and balances, to enable the Committee to take ownership of the budgets and provide robust challenge and scrutiny to Officers on the performance of those budgets.


The impact of the Cost-of-Living Crisis on the Council’s budget was outlined, with the report detailing the pressures arising from the macroeconomic pressures resulting in an adverse variance of £5.3m at Q1. This included additional cost of utilities in Council buildings, a shortfall in leisure income, a reduction in car parking income and an increase in the cost of the waste contract. It was further reported that the national employers staff pay award presented an additional pressure of £3.4m, and that this had yet to be accepted. The report detailed the proposed mitigations against the increase budget pressures, and the Committee was advised that these would continue to be reported throughout the financial year.


In response to queries by members, it was clarified that the loss of income in car parking charges was due to both the delay in implementation of new charges, and the reduction in income on existing parking schemes. An update was also provided on the Dedicated Schools Grant (DSG) statutory override, which presently meant Local Authorities were not liable for the DSG deficit but was due to expire 2022-23, with national lobbying of central government ongoing to extend the override. The costs associated with reprovision of Library Services was also raised, with £0.380m additional costs to be mitigated as a result of unexpected circumstances such as additional security and energy costs.


Resolved – That


(1)  the balanced forecast revenue position presented at Quarter 1 be noted.

(2)  the progress on delivery of the 2022/23 savings programme at Quarter 1 be noted.

(3)  the forecast level of reserves and balances at Quarter 1 be noted.