Members received and considered the report of the Chief Finance Officer on the Revenue Budget and Capital Programme Monitoring Quarter 3 2021/22. The report updated Members on the Council’s finances as at the end of December 2021 and Collection Fund performance.  It was noted that the report had been scrutinised by the Overview and Scrutiny Committee (OSC) on 14 March 2022 and a copy of the Minutes arising from the OSC meeting had been appended to the report for Cabinet’s consideration.

Since the Quarter 2 report there had been two reportable virements the first relating to the Audio-Visual Council Chamber system maintenance and the second a transfer of a property from Acquisitions, Transformation and Regeneration to Housing, Community and Neighbourhood Services as it was now being used as storage space and not a commercial let.

At the end of Quarter 3, the Revenue Budget showed a surplus of £128,000, against the approved budget drawdown from Reserves of £2.7m which represented an improvement of £222,000 since the Quarter 2 forecast.  The report detailed the material variances and the forecast was summarised at Appendix A to the report. Since producing figures at the end of Quarter 3, there had also been a reduction in the costs of the Burwash judicial review.

The Capital Programme forecast spend as at 31 December 2021 was £15.348m, which was £47.345m lower than the revised budget approved in February 2022, mainly as a result of the continued impact of the pandemic and the main changes were highlighted at Appendix B to the report. 

The forecast impact on Reserves was a reduction of £3.118m against the planned use of £3.319m, a decrease of £277,000 from the previous forecast.

The Council Tax collection rate at the end of Quarter 3 was 84.51% of the collectable debit and 87.14% of the budgeted yield, which was 1.35% and 1.20% respectively higher than the corresponding figures in 2020/21.  The Business Rates collection rate at the end of Quarter 3 was 77.72% of the collectable debit which was 0.49% higher than the corresponding figure in 2020/21 and represented a considerable improvement from the previous quarter. 

Members were also requested to approve the continuation of two Service Level Agreements, the first with Rother District Citizens Advice for £85,000 per annum and the second to Bexhill Museum for £8,500 per annum.  Discussions were on-going with Rother District Citizens Advice following the COVID-19 pandemic and it was considered appropriate to continue the funding for a further one-year period whilst the service levels were reviewed.  With regard to Bexhill Museum, discussion were progressing with Bexhill Town Council over services they may wish to provide, and it was felt appropriate to continue with the funding for a further one-year period to allow those discussions to develop.  Members noted that the £8,500 currently paid to the Bexhill Museum was funded through the Bexhill Special Expenses and was in addition to other support given to the Museum by the Council.

Members were advised that the Property Investment Panel had met recently and a further acquisition was in progress.  Details would be made available in due course.

RESOLVED: That:

1)         the report be noted; and

2)         the continuation of two Service Level Agreements in respect of Rother District Citizen’s Advice and Bexhill Museum and an extension of funding of £85,000 for Rother Citizens Advice and £8,500 for Bexhill Museum for a further one-year period be approved.

(Councillor J. Barnes declared a Personal Interest in this matter as Vice-Chairman and Company Executive Director for the Council’s Housing Company and in accordance with the Members’ Code of Conduct remained in the meeting during the consideration thereof).