Agenda item

To consider a Cabinet report that provides an update on the Council’s financial performance and projected outturn for 2023/24 for the revenue account,  capital programme and reserves statement as at the end of January 2024.

The Portfolio Holder for Finance, Estates & Property Services, Councillor Shires, presented a report on the Council’s on the Council’s financial performance and projected outturn for 2023/24 for the revenue account, capital programme and reserves statement as at the end of January 2024.

Cllr Shires commented that there was a projection for a General Fund Deficit of £0.986m at 31 March 2024. The need to provide temporary accommodation for an unanticipated number of people who had been made homeless had significantly raised the council’s expenditure during the financial year.

Cllr Shires drew the Committee’s attention to the work that had been done to deal with this overspend which had been considered and approved by the Cabinet at its meeting on 11 March 2024.

The Director of Resources in response to Cllr Dixon’s question stated that it was anticipated that there would be some variance to the end of year budget figure but it was not expected to be significant.

The Director of Resources in response to Cllr Penfold’s question stated that the level of additional borrowing that the council had to undertake was of a short-term basis that the council had to do to maintain cash flow and carried little risk.

The Director of Resources in response to Cllr Cushing’s question advised the final outturn figures would be by the end of May and go to cabinet in July with the closure of the accounts to be considered by the Governance, Risk and Audit Committee.

The Director of Resources in response to Cllr Housden’s question stated that in respect of the three capital schemes for major coastal projects they were almost all Government grant funded and the Council contribution was just £600k.

Cllr Shires in response to Cllr Dixon’s question advised that the budget overspend due to higher car park receipts at the car parks where this income is shared with relevant parishes was due to how the agreement with the Parish Councils was worded. The Council was currently negotiating with the Parish Councils to see if it was possible to change the agreements.

The Director of Resources in response to Cllr Dixon’s question advised that the overspend from the Communities Fund using £125,000 of the UK prosperity fund in 2023/24 before it had been allocated was due to a miscommunication between the Council and the government department on the funding.

The Director of Resources in response to Cllr Housden’s question stated that there was provision made in the Council’s budget for the expected number of vacancies across the council’s services. The Council at the moment, unlike some local authorities, did not hold posts vacant for budgetary reasons.

Councillor Housden proposed, seconded by Councillor Dixon and agreed by the Committee that a report should be submitted to a future meeting on the Council’s Workforce Development Strategy that should include how vacancies are managed, how agency staff are used, what work the council does to recruit staff as well as the impact of vacancies especially key staff on the Council’s service delivery and budget.

Cllr Shires in response to Cllr Cushing’s question advised that the £63,000 variance in rental income from investment properties related to the units at The Cedars, North Walsham and was due to broadband not been installed. The Council was seeking compensation from Openreach and all bar one of the units were shortly to be filled and be in use.

The Director of Resources in response to Cllr Holliday’s question stated that it was projected that the increase in the Local Housing Allowance for next year announced in the budget would have a 370k effect on the council’s budget but it was only as an estimation at this stage as there are a number of factors involved.

Resolved – that a report on the Council’s Workforce Development Strategy be submitted to a future meeting to include how vacancies are managed, how agency staff are used, what work the council does to recruit staff, as well as the impact of vacancies, especially key staff, on the Council’s service delivery and budget.