Issue - meetings

To consider the quarterly budget position. 

That the financial performance information for the first quarter of 2021/22 be NOTED.  

33.1          The report of the Head of Finance and Asset Management, circulated at Pages No. 18-28, provided the first quarterly monitoring report of the Council’s financial performance for the year. Members were asked to consider the information provided.

33.2          The Head of Finance and Asset Management explained that the report highlighted a projected outturn surplus based on the quarter one position of £22,382 on the revenue budget and detailed the expenditure to date against both the capital programme and the approved reserves. In terms of service expenditure, the quarter one full year projection highlighted a full year cost of service provision totalling £13.266 million which would result in a deficit against the approved budget of £849,177. In respect of employees, the full year projection highlighted a potential gross surplus of £377,508; however, it should be noted that within the Council’s corporate expenditure there was a target to save £155,000 from employment costs across the Council, therefore, the net position was a surplus against target of £222,508. Payments to third parties highlighted a small projected overspend of £75,005 which included additional costs relating to an increased amount of burials at cemeteries, the costs of a Domestic Homicide Review and a forecast overspend on the Ubico contract sum in relation to extra payments being made in order to attract and retain drivers for the Council’s services - a national shortage of drivers, estimated to be around 70,000, had resulted in an impact on many forms of business with local authority waste collection services not immune to that impact. There had been a growing number of examples of authorities having to suspend collections as a result of driver shortages. To help mitigate the problem on the Tewkesbury contract, an increased market supplement had been agreed whilst the driver training for loaders continued – the rest of the contract sum was on target.

33.3          COVID-19 costs were continuing with the full year cost estimated at £415,094 which included the continued work of the business cell, additional costs for the provision of waste and recycling services and the continued support to Tewkesbury Leisure Centre. Those costs would be met from the additional COVID-19 grant funding provided by the government and new burdens funding for the business cell work. Income levels were down but many areas of Council activity had recovered well from the impact of COVID-19 with several income streams either back on budget or delivering a small surplus. Some areas continued to be affected by the pandemic with reductions in income levels from car parks during the first quarter, an expectation that the Tewkesbury Leisure Centre contract fee would not be provided during the year, and current vacancies for the units within the Council Offices. In addition, One Legal income remained below target; although this was offset to an extent by the savings on employee costs.

33.4          The expenditure associated with corporate activities, as well as the financing of the Council, highlighted an estimated surplus of £871,559 for the financial year. Treasury activities were  ...  view the full minutes text for item 33