Agenda item

The Committee considered a joint report of the Corporate Director of Resources and the Corporate Director of Neighbourhoods and Climate Change on the forecast revenue and capital outturn for the second quarter of 2023/24 (for copy, see file of minutes). 

Philip Curran, Finance Manager, provided details of the forecast outturn budget for the service areas, highlighting major variances in comparison with the budget, based on the position to 30 September 2023.

Councillor Adam referred to the comment made earlier in the meeting by Councillor Stubbs on the cost of removing hazardous waste which is fly-tipped and he highlighted that appendix 4 noted £34k unbudgeted expenditure on fly tipping / asbestos removal.  Councillor Adam also drew attention to the £235k overspend on vehicle daywork repairs, hires and lease extensions. The Finance Manager replied that the majority of the spend was associated with hire due to the long lead-in times for the purchase of new vehicles, since the Covid-19 pandemic.  As the current vehicles are being used for longer periods, this was leading to increased repair costs. Councillor Adam questioned whether the delays were linked to the purchase of electric vehicles and the Finance Manager informed the Committee that the Council is purchasing an increasing number of smaller electric vehicles, however, at present, larger electric vehicles, such as bin wagons, remain expensive and the demand for electric vehicles continues to increase.

Referring to the figures in appendix 4, Councillor Adam asked for further information on the variance of £750k on street lighting countywide.

The Finance Manager replied that the figure represented underachievement on the surplus due to reduced level of income as several highway maintenance schemes involving regeneration had been delayed and were still pending. Councillor Adam asked for confirmation that the schemes will still be delivered.  The Finance Manager confirmed that the schemes will be delivered in future years however there may be an issue with capacity to do this work within the Service which may result in the work being sub-contracted.

Councillor Nicholls also referred to appendix 4 and raised concern at the underspends on staffing vacancies and unfilled posts.  He emphasised that levels of service must be maintained and he asked what action could be taken to address the issues. The Finance Manager clarified that some of the underspends referred to were planned savings and issues relating to recruitment and retention of staff were being addressed, with work ongoing with HR to improve recruitment campaigns.  Exit interviews are carried out when staff leave, which can help to identify any underlying issues.

Resolved:

That the content of the report be noted.