Issue - meetings

Financial Performance Report 2024-25 Quarter Two

Purpose

To consider the second budget monitoring position for the 2024/25 financial year (reported to Cabinet on 5 December) and a separate update report on budget monitoring for planning services.

Recommendation

That the Overview and Scrutiny Committee:

1. Reviews and notes the financial position set out in the report and the recommendations detailed in paragraphs 9.3 to 9.9 and 6.2 as approved by Cabinet at its meeting on 5 December 2024.

2. Notes the update report in respect of Development Management.

3. Agrees any recommendations to submit to Cabinet.

Invited

Councillor Mike Evemy, Cabinet Member for Finance and Transformation

David Stanley – Deputy Chief Executive Officer

Additional documents:

Minutes:

The Deputy Chief Executive Officer provided an overview of the Financial Performance Report for 2024/25 Quarter 2 and summarised the key points as follows:

The projected year-end surplus was lower at Quarter 2 than it had been at Quarter 1 but there was still a chance to achieve the budgeted surplus of £0.5m due to the reduced pressure on pay following the pay award.
The Quarter 2 report took into account the higher than previously expected interest rates, which would bring in additional investment income.
The income shortfalls weren’t material on their own but together added up.
There was a capital programme underspend in the provision of affordable housing (capital loan to Cottsway), and support to Bromford. An overspend on Disabled Facility Grants had been removed as this had been funded.

The Committee questioned the net effect of the update report provided in relation to planning services. The Deputy Chief Executive stated that the initial Quarter 2 revenue variance of £250k had moved down to £220k. The net capital underspend had not changed materially.

In discussion the Committee also noted that:

Recruitment costs were normally met from vacancy savings during the interim period so there was no recruitment budget. The £100k was additional expenditure to ensure that the Council had a robust planning service as quickly as possible. The Deputy Chief Executive Officer committed to providing a detailed breakdown of this spend.
Two Communications posts had transferred to the Council in Phase 1 (£70k) but the Council had used an agency to provide ongoing support to ensure an adequate communications function. This had caused a £31k adverse variation but this number was expected to come down in next update.
The Council had to use its resources responsibly and it was incumbent on the Deputy Chief Executive as the S151 Officer to ensure that the services passed over to any future unitary authority reflected the resources available.
No provision had been made within the Medium Term Financial Strategy for the Phase 2 transfer of staff from Publica to the Council. There was a need to understand whether the cost of services would be higher outside of Publica and any additional cost would need to be justified.

The Deputy Chief Executive Officer presented the additional report on planning services. The report provided an update in view of recruitment to various posts. There was £120k of additional income on planning fees which was largely offsetting the additional costs of £150k over and above the budget. There was a need to understand the relationship between spend and income to inform service transformation. Recent appointments would put the service on a better footing and reduce the reliance on agency staff from 1 April 2025.

The Committee commented that planning services including planning enforcement were important functions that had been under pressure. The Committee noted concern about vacant posts and hoped that the situation would improve now that the service was delivered directly by the Council rather than through Publica.

Issue - meetings

Financial Performance Report 2024-25 Quarter Two

Meeting: 06/01/2025 - Overview and Scrutiny Committee (Item 132)

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