Agenda item

The Committee received two joint reports of the Corporate Director of Resources and the Corporate Director of Regeneration, Economy and Growth. The first report provided details for the final revenue and capital outturn position for the Regeneration, Economy and Growth (REG) service grouping in 2023/24 (for copy see file of minutes).

The Finance Manager Resources and Regeneration gave an update on the final outturn for 2023/24 that looked at the revenue and capital for the previous year. In relation to the revenue account the service reported a cash limit underspend of £0.343 million against a revised budget of £57.322 million. Net adjustments on energy reductions of £1.805 million had been excluded from the REG cash limit outturn position. Also excluded was £1.554 million in respect of Leisure Centre income shortfalls post Covid (£0.825 million) and losses due to Leisure Transformation closures that were being covered corporately (£0.735 million) and £0.245 million linked to pay award vacancies.

The REG cash limit balance carried forward at 31 March 2024 was £ £1.462 million and other earmarked reserves under the direct control of REG totalled £28.018 million.

The report provided details of the areas of underspend and overspend within the service accounting for the outturn position. Capital expenditure incurred in 2023/24 was £125.951 million, representing 94% of the revised REG capital budget of £134.505 million. A request was made to the Member Officer Working Group to carry forward the £8.554 million underspend to the current year to augment the 2024/25 Capital Programme.

Resolved:

That the final outturn position against the 2023/24 revenue and capital budget be noted.

The second joint report of the Corporate Director of Resources and the Corporate Director of Regeneration, Economy and Growth provided details of the forecast outturn position for quarter one revenue and capital for Regeneration, Economy and Growth (REG) as at 30 June 2024 (for copy see file of minutes).

The Finance Manager Resources and Regeneration gave an update on the outturn position to date and advised that the original service revenue budget had been revised in year to incorporate various permanent budget adjustments.

The report showed the cash limits for each service and reported an overspend of £0.966 million against a revised budget of £59.026 million which took into account adjustments for sums outside the cash limit that were met from corporate reserves and use of / contributions to earmarked reserves. The revised capital budget was £170.367 million with expenditure of £35.270 million as at 30 June 2024.

In summary, he highlighted that the financial outlook was challenging for all services and a robust monitoring process was in place throughout the year to help reduce the projected overspend. It was noted that the service had a healthy reserve balance to offset the overspend should the outlook not improve.

Mr Simons referred to the £3.6 million that would be drawn from reserves and asked how the reserves were structured. The Finance Manager explained that reserves were built up throughout the year from a variety of resources and underspends that could then be drawn on to meet the service’s priorities. The Cabinet report summarising earmarked reserves would be provided to Mr Simons.

Responding to a query from Councillor B Moist regarding the reduced revenue with regards to the Leisure Transformation Programme, the Finance Manager advised that the Leisure Transformation Programme was to be considered at Cabinet on 18 September 2024. Additional costs had been identified with regards to health and safety that had not been factored into the consultant’s projections. He noted that some of the schemes were projected as being self-financed and additional income levels would have to be built up, however the projection levels were not being achieved at this point and would continue to be monitored.

Resolved:

That the contents of the report be noted.