Issue - meetings

The Assistant Director of Finance introduced the item and provided an overview of the report.  

Members were informed that the report was an update on the latest budget forecasts for the General Fund, Housing Revenue Account (HRA) and capital programme for the 2024/2025 year, based on the half year performance from April 2024 to September 2024 inclusive.  

It was explained that there was some movement in the individual budget forecasts but that the latest position in the general fund remained unchanged from Quarter one with effectively a balanced budget at Portfolio Holder level. 

The HRA account forecast deficit had increased by £78,000 to £200,000 and the capital programme had increased by £300,000 subject to the approval of the recommendations in the report.  

The approval of a further £75,000 for the refurbishment of the Salisbury Arcade in Totton would support the regeneration of the area by enhancing the overall appearance of the area whilst also linking to two of the Council’s adjoining assets. This would be funded via the reallocation of resources from another scheme. 

The third recommendation, for a £375,000 supplementary budget for the Hardley Depot scheme, was due for abnormal ground works and approval of this would ensure a modern, fit for purpose Council asset. 

The pay award for 2024/2025 had now been concluded and members were reassured that sufficient budget exists to meet the increased in-year pay costs.

New variations to the general fund and HRA included pressures on income streams, totalling £350,000, relating to car parking income and planning fees. This was in spite of an overall increase in parking income and the Council’s ability to charge more for planning services following the rise in national set planning fees. 

Operational pressures of £90,000 regarding agency staffing and vehicle hire costs affected the Street Scene services. This was due to sickness levels and vacancies, resulting in more expensive agency costs. The Council’s aging fleet also required more repairs and maintenance.  

Necessary ICT cloud storage costs were greater than budget and there had been a spike in insurance costs following a sustained period of lower premiums. These pressures affected both the general fund and HRA with £175,000 increase relating to the General Fund and a £78,000 increase relating to the HRA. The £78,000 increase made up the total movements in adverse variances in the HRA and was uncontrollable by the service. 

The Council’s fuel costs were 15% lower than budget, resulting in a saving of £30,000 in first half of the year. Furthermore, the Council continued to benefit from holding cash balances in a relatively high interest rate environment, which provided an additional £400,000 of interest earnings.  

Further mitigation of the General Fund pressures came from vacancies within the Revenue and Benefits and Support and Planning services, totalling £185,000, resulting in a balanced budget forecast for the General Fund. 

The Portfolio Holder for Finance and Corporate commented on the report and highlighted that the £75,000 supplementary budget for the Salisbury Arcade was  ...  view the full minutes text for item 36