Consideration was given to the report of the Interim Deputy Chief Executive on the Revenue Budget and Capital Programme Monitoring as of 30 September 2023.  The Revenue Budget and Capital Programme statements were summarised in Appendices A and B respectively to the report, together with the impact of the forecast on the Council’s Reserves at Appendix C.  The report also included a brief update on the Collection Fund performance.

The forecast outturn for the 2023/24 financial year, indicated a forecast deficit position of £2.961m at 31 March 2024, against a budgeted deficit of £2.221m which was a variance of £0.74m.  The updated Medium Term Financial Strategy looked to address the financial position of the Council, considered elsewhere at this meeting (see Minute CB23/42 below). 

The Revenue Budget forecast as at the 30 September 2023 indicated a deficit of £0.656m against the approved budgeted drawdown from Reserves of £2.045m resulting in a forecast reserve drawdown of £2.701m.  The main reasons for the variations were detailed in the report, although it was noted and agreed that the descriptions of the main variances would be more explicit in future reports.   

The Council’s Net Financing Costs had reduced due to a review of several schemes within the Capital Programme to ensure deliverability of anticipated outcomes and affordability. As a result of the review, the anticipated borrowing had not been required and interest due to be paid was lower than expected by £471k.  Interest income from investments was expected to yield an additional £730k, of which £530k was in respect of an increased focus on treasury management activity and higher interest rates since the budget was calculated and £200k due in interest on loans to the housing company.

The revised 2023/24 Capital Programme budgets had been derived from reviewing the project cashflows and assessing the expected position at this time. There were a number of additions to the Capital Programme including unexpected replacement boiler costs at the Town Hall; the refurbishment of five tennis courts at Egerton Park as part of grant acceptance conditions; potential payments in respect of contributions towards dilapidations at Rye Swimming Pool and Bexhill Leisure Centre and Pool; an additional Disabled Facilities Grant allocation and changes to the Changing Places Toilet schemes approved previously.  The current budget for the Capital Programme’s for the year was £28.4m, with the forecast outturn for the year as at Quarter 2 being £19.9m, a variance of (£8.5m) or 30% of the programme. 

It was noted that the collection rate as at the 30 September 2023 for the Council Tax and Business Rate parts of the Collection Fund was 57.10% and 58.62% respectively of the collectable debit, which was 0.21% and 0.43% lower respectively than the corresponding figures in 2022/23.  It was considered that the collection rates had held up well despite the squeeze on finances following the pandemic and the cost-of-living crisis, but a future decline in collection rates would have an adverse impact on the Council’s income.

RECOMMENDED: That:

1)        the scheme to meet the potential costs of the Council’s contributions towards dilapidations to Rye Swimming Pool and Bexhill Leisure Centre and Pool at a forecast cost of £60k in 2024/25 and £50k in 2025/26, to be funded from capital receipts, be approved; and

2)        the changes to the Capital Programme budget as follows be approved:

·      A new capital scheme be added to the capital programme in 2023/24 in respect of replacement boilers in administrative buildings, at a total cost of £95k, to be funded from revenue reserves.

·      An increase of £161k to the current capital programme scheme in 2023/24 in respect of Disabled Facilities Grants, funded from an additional grant allocation from Government (DLUHC).

·      Transfer of £53k from Pebsham toilets and £68.5k from Camber toilets/Camber Sands Welcome Centre (the latter subject to formal approval from the funding body) to a new scheme at Egerton Park toilets in 2023/24, in respect of a Changing Places Toilets scheme, to be funded from a Government (DLUHC) grant.

3)        the acceptance of £128k revenue grant funding for Bexhill leisure pool and Rye swimming pool (subject to the notification of a formal offer) be approved.

AND

RESOLVED: That the report be noted.

(Councillor Field declared a personal interest in this matter as an elected Member of East Sussex County Council and in accordance with the Code of Conduct remained in the room during the consideration thereof).