Agenda item

The Committee considered a report of the Corporate Director of Neighbourhoods and Climate Change which provided details of the forecast outturn budget, highlighting major variances, based on the position to the end of the second quarter of the year (for copy of report see file of minutes).

Presenting the report the Finance Manager, Phil Curran, reported a forecast revenue overspend of £0.493 million against a revised budget of £116.138 million.  It was noted that the outturn took account of inflation related items including pay awards and energy and fuel costs which were offset by underspends on waste contracts and a higher price for the power generated by the joint stocks landfill site.  The report included a breakdown of the revenue position across heads of service areas and reasons for variances were detailed in appendix 3 of the report.  It was reported that the cash limit reserve position stood at £0.184 million at 31 March 2023 which provided flexibility to deal with unbudgeted expenditure.  The outturn also took account of a contribution to earmarked reserves to fund future service initiatives. 

The revised capital budget was £77.537 million and expenditure to 30 September was £21.429 million with key areas of spend to date being highways and bridges, environmental schemes and vehicles and plant. 

Councillor Adam referred to the use of agency staff within the refuse and recycling service area and observed that this had been discussed at previous meetings.  He asked whether there was an expectation that the position would continue and what, if any, action was being taken to reduce the reliance on agency staff.  The Finance Manger explained that, following the busy Covid-19 pandemic, it had been necessary to allow staff to carry forward annual leave and this had been one of the reasons for the use of agency staff, however, there was less flexibility for staff to carry forward annual leave as the recovery from the pandemic continued. The physical nature of the duties and the ageing workforce had also impacted sickness absence levels, however, the approach to sickness absence was being strengthened, with increased training for managers and closer investigation into sickness absence on a case by case basis.  Councillor Adam requested that the use of agency staff, sickness absence levels and the ageing workforce within the refuse and recycling service be kept under review by the Committee.

In response to a question from the Chair for an explanation of the £219,000 overspend on vehicle work in the refuse and recycling service, the Finance Manager clarified that the age of the vehicles and the number of repairs resulting from accidents were factors. 

Resolved:

That the report be noted.