Cabinet Member for Finance.
Decision:
It was RESOLVED: -
1.1 That, subject to any further budget variations that arise during the rest of the financial year, the adverse variance of £499k, referred to in section 6.5 of the report, be noted;
1.2 The 2021/22 revised Capital Programme referred to in Appendix A and section 6.13 be noted.
REASON FOR DECISION
To ensure that Members are kept informed of the current budgetary position for both the HRA Revenue and Capital Budgets.
Alternative Options Considered and Rejected:
At this stage in the year, the financial position is for noting only.
Any Declarations of Interests Declared: None
Any Dispensation Granted: None
Minutes:
71.1 The Chair invited the Cabinet Member for Finance, Councillor Simon Barrett, to introduce the report.
71.1 Councillor Barrett proposed recommendations 3.1 and 3.2 in the report, which was seconded by Councillor Jan Osborne.
71.2 Councillor Arthey queried the variance for Building Services and whether this was a result to of the Covid-19 pandemic.
71.3 The Cabinet Member for Finance agreed that he was concerned that there was budget deficit in a budget managed on a day to day basis by the Council and that this needed to be under better control. The Assistant Director for Housing advised Members that the whole housing sector had struggled during the last eighteen months, and that the Building Service and contractors had been unable to undertake repairs. In addition, tenants had reported more repair jobs whilst spending more time at home. However, the Building Service had been able to reduce the outstanding number of repair jobs from 3000 to 500. The team was working with sub-contractors to catch up on repair jobs
71.4 Councillor Holt queried the £2m surplus from last years HRA budget, the method of budget setting and whether the surplus from last year was being spent.
71.5 Councillor Ward stated that the surplus of £2m had been added to the funding for Strategic Priorities.
71.6 The Assistant Director for Housing provided details of how the budget was set before the final outturn. During the last four years there had also been a reduction in the reliance on sub-contractors.
71.7 Councillor Arthey referred to page 33 and the entry for ICT for £413K project spending of which only £10K had been spent and the Cabinet Member for Finance, Councillor Barrett and the Leader of the Council, Councillor Ward, advised Members that the money had not yet been spent and that the forecast would double again as this was a year on year spend.
71.8 In a response to Councillor Busby’s question, the Assistant Director for Finance detailed how sub-contractors worked on a schedule of rates and that this was reviewed periodically. Therefore the increase in the cost of material for this part of the building service did not have an impact on the budget.
It was RESOLVED: -
1.1 That, subject to any further budget variations that arise during the rest of the financial year, the adverse variance of £499k, referred to in section 6.5 of the report, be noted;
1.2 The 2021/22 revised Capital Programme referred to in Appendix A and section 6.13 be noted.
REASON FOR DECISION
To ensure that Members are kept informed of the current budgetary position for both the HRA Revenue and Capital Budgets.
Supporting documents: