Agenda item

To consider Item 8

The Deputy Director of Finance and Assets advised Members that  the report set out the Authority's revenue and capital spending position as at 31 March 2023, together with the projected outturn position for the financial year. The provisional outturn figure for the year was a net underspend of £607k.

The Deputy Director of Finance and Assets highlighted to Members that even though there was an underspend, there were three main factors which had influenced this.  Firstly, it must be noted that the underspend included a year end technical adjustment and reversal of a provision of £524k. This was predominantly funds held in provisions relating to holiday pay and potential compensation due to individuals impacted by the 2015 pension remedy which were found to be age discriminatory. The government had directed that they would be covering the compensation costs.

Secondly, the Authority received additional one-off funding in the region of £650k in January 2023 relating to 2021/22 reconciliation of the business rates grants. Thirdly the Authority had overachieved in its treasury investment returns by £300k due to the significant increase seen in interest rates since 2022.  These three factors were not known at the time the budget was set in February 2022.  If none of these events had occurred, an outturn report with an overspend in the region of £900k would have been presented.

2022/23 had been a challenging year with a number of financial pressures being faced by the Authority.  There were unknown costs around utilities, inflationary pressures and higher than budgeted pay awards.  All these pressures had been reflected in the outturn and future known pay awards had been reflected in the medium term financial plan.

A Member asked when undertaking the budget process for next year, would the Authority be a position where it could push the precept for a flat £5 rather than be capped at 1.99%.

The Deputy Director of Finance and Assets advised Members that the current precept of 2.99% had been factored in, however, there were discussions within the fire sector of the potential to increase it to a £5 flat rate.

The Director of Finance and Assets advised Members that two years ago, the additional £5 precept flexibility was secured for the lower quartile fire and rescue services, in recognition of the significant pressures they faced. Last year, the principle was extended to all fire and rescue services, based on national work around inflation, and inflationary pressures. There was very good data from all services around the pressures they were facing, which gave the evidence base for additional flexibility to be awarded.

A Member asked about the property portfolio and the pursuit to recover some of the increased costs incurred during the build of the Blue Light Hub from the professional design team.

The Director of Finance and Assets advised that it would not be appropriate for him to disclose information about the legal position but would be happy to update Members after the meeting.

The Chairman asked for an explanation of the Marketing and Communications equipment and licencing in-year growth bid.

The Deputy Director of Finance and Assets advised that at present £8,399 had been spent, and the licences still needed to be obtained. The £55k requested was no longer needed, so there was a variance of £6,601k.

The Chairman asked for an update on where the Service was in regard to wholetime establishment.

The Head of Human Resources advised Members that wholetime number were 292, on call 63 and support staff 124. 18 apprentices were due to start in September and there was an additional pool of 11.

The Chairman asked what was happening to the top floor of the West Ashland building which was not complete. What provision had been made for completion of it.

The Deputy Director of Finance and Assets advised that at present, there was no provision set aside for the top floor, as the initial idea was that someone external would come in and assist with the contribution of paying towards it.

The Director of Finance and Assets advised Members that when West Ashland was built, it was pre-Covid, and it was felt it would be best to let it out to an external company, as Milton Keynes office space was in high demand. After the pandemic, people changed the way they worked. The latest advice received from Lambert Smith Hampton, was that it would be hard to let as commercial office space. It would now be looked at strategically, rather than a commercial let.

The Chairman asked that a proposal be brought to Members on the top floor of West Ashland.

The Director of Finance and Assets advised that the space could be used for whatever the Authority wanted it to be, as it was just a shell with very little fit out. It would most easily be converted to office space but could serve other purposes as well. There were plans to bring a report to Members in Quarter 3, but this could be brought forward.

The Chairman asked for an update on the business as usual work property spend that was being undertaken on stations. As there was an underspend for the year, could it be spent on business as usual property improvements.

The Deputy Director of Finance and Assets advised that this could be provided to Members detailing the work that had been done.

RESOLVED:

1.      That the provisional outturn forecast for the Authority as at 31 March 2023 be noted.

2.      That the slippage of £1.100m on the capital programme be approved to be carried forward into 2023/24.

3.      That the underspend of £0.607m be transferred into Revenue Contribution to Capital Reserve (RCCO). 

4.      That delegated authority be given to the Chief Finance Officer to authorise any late changes to the movements in reserves and capital slippage amounts resulting from accounting adjustments needing to be made during the year-end closedown process.

5.      That should any changes to the amounts referred to above be required, then the Chief Finance Officer will report these to Members at the next available meeting.