Issue - meetings

The report brings together information on three key budget areas – salaries, major operational income streams and investment income.  The performance of the key budget areas, together with approved variations to the revenue budget and areas identified through revenue budget monitoring are then summarised to provide an indicative overall budget position for the year.  The report also updates Members on capital expenditure and variations that have been agreed in relation to the capital plan.

Due to the escalating levels of inflation, Members are invited to consider whether an in-year review of some fees and charges should be recommended to Cabinet.

The report of the Director of Finance and Transformation brought together information on salaries, major operational income streams and investment income.  The performance of these key budget areas, together with approved variations to the revenue budget and areas identified through revenue budget monitoring were summarised to provide an indicative overall budget position for the year.  Members were also updated on capital expenditure and variations that had been agreed in relation to the capital plan.

Members noted, amongst other things, that the salary budget was under pressure with spend above profile and overall income from the Borough Council’s operational income stream below profile.  However, this was negated, amongst other things, by increased investment income.  When taking all of the issues identified as at the end of August into consideration it suggested that the year-end position would be on or around budget or better, albeit only five months into the financial year and a lot could happen between now and the end of the year.

Reference was made to the Medium Term Financial Strategy (MTFS) and the growing funding gap as a result of the impact of the current global economic conditions.  It was noted that if Government did not recognise the pressures faced by local authorities in future financial settlements and council tax referendum principles a number of councils finances would be under severe pressure, including Tonbridge and Malling.

There was in-depth discussion on the progress being made to address the savings target for 2022/23; the escalating levels of inflation and its negative impact on the funding gap and the MTFS; the value in reviewing fees and charges for the current year due to the increasing costs of providing services and the reduced income given the current economic climate; and the uncertainty around Government funding and potential reductions of 10% across all Government departments.

Members requested more detail in relation to the MTFS and the Savings and Transformation Strategy and were advised that this would be reported to the Cabinet and the Finance, Regeneration and Property Scrutiny Select Committee in November 2022.

With the current high levels of inflation, the Committee felt it appropriate for an in-year review of the level of fees and charges to be undertaken.   It was also felt that car parking charges and usage across the Borough should be reviewed as part of this exercise to see if there was any potential to generate income from lower charges by increasing daily use.

RECOMMENDED:  That, due to the escalating levels of inflation, an in-year review of fees and charges, including a review of car parking charges across the Borough, be undertaken.

*Referred to Cabinet