Agenda item

The Committee received a report of the Corporate Director of Resources which provided details of the forecast outturn budget for Neighbourhoods and Climate Change, highlighting major variances in comparison with the budget, based on the position to the end of the second quarter of 2021/22 (for copy of report see file of minutes).

In presenting the report, the Finance Manager for Neighbourhoods and Climate Change reported a cash limit underspend of £101,000 against the revised budget of £108.492 million.  He explained that the outturn takes account of £6.2 million of COVID-19 related costs treated as outside of the cash limit, including increased costs due to service disruption, agency fees relating to staff absences and increased waste disposal costs. The Finance Manager drew Members’ attention to Appendix 3 of the report which provided details of variances at Head of Service level, information which had been requested by a member at the October meeting of the Committee.

The Finance Manager highlighted the forecast cash limit reserve position of £995,000 at 31 March 2022 which provided the service with some flexibility to deal with unbudgeted expenditure in the future. The outturn also took account of a contribution to and from reserves of £786,000.

The Committee noted the capital budget of £62.231 million, with expenditure during the first six months amounting to £20.853 million.  Key areas of spend during the period included highways and bridges and environmental and crematoria schemes.

The Chair thanked the Finance Manager for the report and invited questions from the Committee.

Councillor Adam referred the Finance Manager to Appendix 3 and requested an explanation of the £107,000 underspend on the fleet due to additional work required for extra vehicles. The Finance Manager explained that the County Council’s fleet was maintained by Environmental Services which recharged when extra vehicles required maintenance over and above work budgeted for, this therefore was an over achievement on income, awaiting recharge from another service area.

Councillor Adam voiced concerns over the lack of progress made with regard to the purchase of electric vehicles.  The Finance Manager replied that the variance referred to in Appendix 3 did not relate specifically to electric vehicles and confirmed that the service continues to purchase smaller electric vehicles.

The Finance Manager added that it is hoped that, as time progresses and technology advances, when it is necessary to purchase larger, more expensive vehicles such as gritters and refuse vehicles, technology will have advanced and costs will have reduced.

Councillor Adam then asked the Finance Manager to explain the reference in Appendix 3 of the report to the overspend on highways revenue maintenance work which included £700,000 of costs to be transferred capital and met from additional investment monies. The Finance Manager responded that the Highways Service undertook both revenue and capital works and this work had been charged to the service, however, it would be charged to capital in due course. The additional investment monies referred to were one-off investment monies which had been allocated over the past two years to deal with matters relating to highways and climate change, however they would not continue to be built into the budget and will be moved to capital.  Councillor Adam asked if this was standard accounting practice and the Finance Manager responded that capital expenditure was funded through a variety of sources, and this was a revenue contribution.

Councillor Elmer referred to the Community Protection budget area detailed in Appendix 3 and the underspend on staffing.  He expressed concern that there were vacant posts in this front line service and stated this should send an important message to the service regarding recruitment. The Finance Manager responded that there had been difficulties with filling posts over the previous two to three years, particularly in the areas of Community Protection and Trading Standards, however, the service had continued to operate effectively. Plans are in place to develop a revised workforce development strategy which aims to improve staff recruitment and retention, address the ageing workforce and provide succession planning, to ensure the service is well placed for the future.

Resolved:  

That the report be noted.