Agenda item

The Quarter 3 Budget Monitoring Report as presented to Cabinet at its meeting on Tuesday 29 March is attached for the Committee to consider.

Contributors:

Councillor John Chilver, Cabinet Member for Finance, Resources, Property and Assets

Richard Ambrose, Service Director for Corporate Finance (Section 151 Officer)

Paper:

Q3 Budget Monitoring Report

The Committee received the Budget Performance Monitoring Q3 report, which was introduced by Councillor J Chilver, Cabinet Member for Finance, Resources, Property and Assets.  The following key points were highlighted by the Cabinet Member:

·       The overall Portfolio overspend was £5.9m which was offset by £6.8m underspend in corporate and funding budget lines. The forecast was £0.9m underspend for the year.

·       The main areas of overspend were in:

o   Education and Children’s services (£3.4m). This related to staffing and agency costs and was linked to the volume and complexity of referrals. 

o   Health and Wellbeing (£1.9m). Attributed to costs of nursing care and complexity of care packages.

o   Transport (£1.1m). Demands and complexity of home to school transport.

·       The revenue forecast had improved compared to Q2 however risks and uncertainties remained which could impact the end of year position.

·       Capital slippage had increased between Q2 and Q3 from 7.9% (£14.8m) to 11.7% (£22.5m). This now exceeded the council target of 10%. Global factors that influenced this included Covid’s impact on material supply chains and contractors’ workforce. The biggest area of capital slippage was on town centre regeneration schemes in High Wycombe and Aylesbury, High Heavens biowaste transfer station and a new South Bucks country park. These projects were still planned to be completed.

·       Overall debt levels had reduced since Q2 and 95% of suppliers were paid within 30 days.

The following points were noted during the Committee’s discussion:

·       Members noted it was positive that the forecast outturn figure had improved.

·       Work was ongoing on the end of year 2021/22 report. It was provisionally expected that the report would not be materially different to Q3.

·       The three areas of overspend had been impacted more acutely by inflationary pressures and next year’s budget had set aside a significant contingency to cover this. Although the budget had taken higher inflation into account based on the Q3 figures, the risks on this had increased and would be monitored carefully in the new financial year. More certainty was expected in Q1 and the Committee felt it was prudent to receive more details on this later in the year.

·       The largest capital slippage referred to overspend on Desborough Road temporary accommodation which was in progress. There was ongoing pressure regarding temporary accommodation costs in the Aylesbury Vale area that needed to be addressed in the new financial year.

·       It was expected that the £0.4m slippage related to an underspend of £0.1m for Wycombe cemetery would fall on the Council however this would be confirmed.

Action: Richard Ambrose

·       The forecast savings was £12.7m against a target of £12.2m with the £0.5m shortfall being spread across a number of portfolios. The Cabinet Member was confident that future savings would catch up with this shortfall. The Better Buckinghamshire savings target was on target by the end of the programme.

·       The Q3 KPIs had improved with 69% on 90 indicators being green (63% in Q2). The Cabinet Member’s portfolio had 23 green indicators out of 24. It was agreed that Quarterly Performance KPI reports would be on the Select Committee’s future agendas.

·       It was expected that the Abbey Barn slippage would not impact the HIF funding. Commercial discussions were ongoing and on target for delivery with a report to Cabinet in 4-8 weeks.

The Chairman thanked the Cabinet Member for the report.