(Report of Director of Finance and Transformation)
The report brought together information on 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 were summarised to provide an indicative overall budget position for the year. In addition, an update on capital expenditure and variations agreed in relation to the capital plan was provided.
Cabinet noted that in respect of salaries, overall actual expenditure to the end of May was £46,650 more than budgeted at the February Budget meeting. This overspend included funding of temporary staffing in planning as detailed in paragraph 1.4.5 of the report. Overall actual income to the end of May was £141,550 less than budgeted. However, this was relatively early in the new financial year and the position would continue to be monitored.
The current economic climate continued to have an ongoing impact on the Borough Council’s financial position and the potential impact on both the current and future financial years of the Medium Term Financial Strategy was being assessed. The importance of ensuring the savings target of £500,000 was achieved by the start of the financial year 2024/25 was recognised.
Finally, reference was made to business rates pooling and it was reported that monitoring as at end of May 2023 placed the Borough Council at £701,000 above the nationally set baseline with a retained income of £561,000. This was a variation of £5,000 against the 2023/24 estimate.
RESOLVED: That
(1) it be noted that as at the end of May 2023, the projected overall outturn position for the year 2023/24 was a net adverse variance of circa £557,000 when compared to the budget set in February 2023;
(2) the not insignificant impact of the current economic global conditions on the Borough Council’s finances, and the need to identify and implement opportunities to delivery as a minimum this year’s savings target of £500,000 be noted; and
(3) the current business rate pool position as at the end of May 2023 be noted.