Decision details

The Assistant Director Finance presented a report which advised Members of the overall projected financial position of the General Fund Revenue Budget and Housing Revenue Account for the 2014/15 financial year after nine months. Members were advised of the main variances within the Scrutiny Committee’s budgets, which showed a projected underspend of £299,810 against a revised Service Committee budget of £12,472,740. The Housing Revenue Account working balance is £7,218,245, with an underspend in total of £2,629,576. There had been a delay in fulfilling the capital programme and a reduction in the short term maintenance budget as work was deferred or no longer required.  There were no supplementary budget requests this quarter.

Responding to a question from a Member submitted prior to the meeting, the Assistant Director Finance stated that :-

·         an overspend in General Fund Housing related to the provision of temporary accommodation , and the underspend of £11,041 in respect of repairs maintenance  related to our own council housing;

·         the overspend within the Democratic representation budget was in relation to a proposed new Members’ Allowance which was not taken forward.

He responded as follows to Members’ queries:-

·         the overspend was due to a delay in the implementation of the new licensing scheme for certain types of Houses in Multiple Occupation.

·         a pool of regular agency staff was used to provide sickness and holiday cover for the domestic refuse collection rounds, and there was a growing trend for a higher sickness rate coupled with the need to staff an increased length of the rounds. The Deputy Chief Executive confirmed that this matter was already under review to resolve the situation.  It was also agreed that a colleague from Waste Services would be invited to the next meeting to outline some of the pertinent issues relating to staffing.

·         car park charges had remained static, but there had been a slight decrease in car park revenue and this was being monitored.  Every effort was being made to address the downturn in Estates revenue from the retail units on South Street.

·         anunderspend of £69,000 related to net interest paid which occurred when spending was not possible or required.  The Member suggested that some speculation to accumulate should be made, buy it was acknowledged that there had to be a balance.

·         new working arrangements with the Department of Work and Pensions had caused an increase in housing benefit overpayment, which had resulted in an increase in outstanding sundry debt.  There continued to be a number of challenges in the workflow across the recovery of debt, and officers were working hard to address this.

·         expenditure in relation to consultancy fees was less than anticipated in relation to the redevelopment of the Bus Station site.

Scrutiny Committee - Resources supported the report and recommended approval by Council (where applicable) of the:-

(1)        General Fund forecast financial position for the 2014/15 financial year;

(2)        HRA forecast financial position for the 2014/15 financial year;

(3)        the additional supplementary budgets as listed in Appendix C;

(4)        outstanding Sundry Debt position as at December 2014; and

(5)        creditors’ payments performance; and

(6)        the Council Tax and Business Rates collection performance.