Agenda item

To consider the financial outturn report for 2022/23. 

20.1          The report of the Associate Director: Finance, circulated at Pages No. 91-101, highlighted the Council’s financial performance for the previous year.  Members were asked to consider the report.

20.2          Members were advised that the final revenue outturn position for the financial year 2022/23 showed a £1m surplus. In terms of service expenditure, employee costs were £389,343 underspent, largely as a result of high staff turnover and vacancies in a number of departments.  Payments to third parties included £138,000 on various planning appeals as well as additional provisions being made for planning appeals that were currently being challenged which amounted to £330,000; in addition, £140,000 of planning appeals had been funded from reserves, therefore, the total cost of planning appeals for 2022/23 was £608,000.  Additional income had been generated, particularly within Planning and Licensing, and external grant funding was also received through the year as well as a £300,000 planning software grant to be used in the coming financial year.  In terms of the Council’s commercial premises, a gross rental income of £3.19m had been produced, a yield of 5%.  This was approximately £178,000 less than budget due to a vacant unit; however, all units were now fully tenanted.  Business rates showed a £448,000 surplus against budget and Tewkesbury Borough Council benefited from being in the Gloucestershire Business Rates Pool which had generated a further £380,000.   A full explanation of all variances exceeding £25,000 at group subjective level was attached at Appendix A to the report which also contained an explanation of the variance on the corporate codes.  A breakdown of the Council’s reserves as at 31 March 2023 was attached at Appendix B to the report which included a breakdown of the previous year’s reserves and the capital outturn was set out at Appendix C to the report.

20.3          A Member drew attention to Appendix A to the report and questioned why the budget for garden communities was zero.  The Associate Director: Finance advised that the Garden Town was completely funded by an external grant which was included in the reserves - there was no cost to the Council.  Another Member asked what the £33,000 biodiversity net gain grant from the government was for and was advised it was for investment in staff and resources and had to be spent on training and upskilling Officers with regard to biodiversity net gain.  In response to a further query as to how it was being spent, the Director: Corporate Resources advised that the grant had to be audited to give central government assurance it was being spent in accordance with the conditions of the grant; when it had been audited nothing had been spent to date.

20.4          A Member noted that the Ubico contract was £137,000 over budget but the Ubico report considered earlier on the Agenda had suggested a contract saving of £15,282.  The Associate Director: Finance indicated this was likely to be due to the pay award but she undertook to provide an answer following the meeting.  In response to a query regarding the most concerning financial risk for the Council, the Executive Director: Resources and S151 indicated that, from his perspective, it was the uncertainty regarding the Council’s finances from April 2024 onwards.  The authority faced a number of challenges as a small council and he eagerly awaited clarification from the government regarding the funding position going forward.

20.5          It was

                 RESOLVED           That the financial outturn report 2022/23 be NOTED.