Agenda item

The Committee considered joint reports of the Corporate Director of Resources and Corporate Director of Neighbourhoods and Climate Change on the revenue and capital outturn for the final quarter of 2021/22 and the forecast revenue and capital outturn for the first quarter of 2022/23 (for copy of reports see file of minutes).

Presenting the report for the final quarter of 2021/22, the Finance Manager, Phil Curran, informed the Committee that the final revenue position as at 31 March 2022 was an underspend of £0.563 million against a revised budget of £109.857 million.  The outturn took account of approximately £5.5 million of Covid-19 related costs, including waste disposal, increasing agency worker costs and social distancing.  The report provided details of the revenue position by Head of Service and an explanation of variances.  The cash limit reserve of approximately £1.3 million provided the service with flexibility to deal with unforeseen issues that may require unbudgeted expenditure.  The Committee also noted the outturn took account of a draw down from earmarked reserves of approximately £5.6 million.

The Finance Manager explained the capital budget was £45.5 million at the year end and with expenditure against the budget of just over £41 million, the underspend of approximately £4 million related to environmental services and delays in highways projects and it was noted the underspend will be carried forward to next year.

In relation to the capital underspend, Councillor Charlton queried whether  increasing costs were likely to have an impact on projects which had been delayed. The Finance Manager responded that inflation was a concern and delays may lead to increased costs, therefore it was possible that

some reprioritising of capital schemes may be required in the future.

Councillor Stubbs asked whether there was evidence that vacant posts were negatively impacting the service and where information on agency costs was reflected in the budget data. The Finance Manager explained that the council continued to ensure front-line services were safeguarded as far as possible. The officer clarified that employee underspends may be covered by agency costs and in some cases, vacancies were managed ahead of future savings. He added that there has been recruitment problems in relation to certain professions and the service together with Human Resources are working to address this issue.

In relation to agency costs, where they were reported varied as agency work provided by a company was classed as a service or supply.

Councillor Kellett referred to highly efficient street lighting at Broomside Lane to Low Pittington Road and asked whether similar lighting could be rolled out across the county. The Chair agreed to pass the question to the Street Lighting service for a response to be provided.  The officer made reference to the Street Lighting Energy Efficiency Project however he could not confirm as to whether the area referred to was part of the project.

Councillor Charlton asked whether the council’s agency refuse workers were on zero hour contracts.  The Chair responded that the service would be requested to provide a response which would be shared with the Committee.

Presenting the forecast of revenue and capital outturn for the first quarter of 2022/23, the Finance Manager explained the overspend of £0.311 against a budget of £113.698 million.  The Committee noted factors included inflationary pressures relating to energy and fuel and the anticipated staff pay award were likely to impact on the overspend.  The report included a breakdown of the outturn position by Head of Service and the reasons for variances.  The Finance Manager drew Members’ attention to the reduction on the cash limit reserve which limited the level of flexibility within the service. 

In relation to the capital budget, it was noted that whilst expenditure during the first three months was approximately £10 million, with the majority of capital budget expected to be spent during the latter part of the year, a significant underspend was not expected.

Councillor Adam raised concern at the additional agency cover due to high levels of sickness absence in refuse and recycling services and he questioned why there was a high level of sickness absence and whether there was any correlation between the number of complaints and the use of agency staff. The Finance Manager clarified that some of the agency cover was necessary as many staff had carried forward annual leave during the Covid-19 pandemic and he added that the council regularly used agency staff therefore a number of agency staff were familiar with the routes.  Councillor Adam requested more detailed data on the nature of the complaints and the Chair agreed to the request for data on the key complaints regarding the waste collection service be brought back to the Committee.

Councillor Adam asked a further question relating to the overspend on bin purchases and he noted residents were changed £20 for a new bin, however the cost of a bin was only £17.90, and, as the cost of a new bin has increased resulting in an overspend of £100,000 on bin purchases, would this  overspend be passed onto residents. Due to time constraints, the Chair replied that she would request further information from the service which would be shared with the Committee.

Councillor Elmer asked whether there was assurance that the energy price cap for domestic and businesses customers will also apply to the council for its purchase of energy to be discounted in the same way.   The Finance Manager responded that it was likely it will apply and the Committee would be appraised of future assistance provided in relation to energy costs. 

Resolved:

That the Quarter 4 Revenue and Capital Outturn for 2021/22 and the Quarter 1 Forecast of Revenue and Capital Outturn for 2022/23

be noted.