Decision details

Members received and considered the report of the Finance Manager on the Revenue Budget and Capital Programme Monitoring Quarter 1 2021/22 (April to June 2021) and the comments arising from the Overview and Scrutiny Committee meeting held on 13 September 2021.  The report contained details of the significant variations of the Revenue Budget and updated Capital Programme and the following key points were highlighted:

-       a revenue forecast deficit of £144,000, against the approved budget drawdown from Reserves of £2.7m - main reasons included planning appeal costs, the procurement of support from Capita for the Planning department, the delayed drawdown of £50,000 for the development of the community wildlife garden at Rye Harbour, a forecast shortfall in car parking income and a shortfall of £474,000 in the Financial Stability Programme’s savings target;

-       additional grant funding of £317,000 had been received from the Ministry of Housing, Communities and Local Government (MHCLG) to offset partially the over spends and the slowing of the Council’s capital investment programme due to the ongoing impact of the pandemic was forecast to reduce financing costs by £688,000;

-       the Capital Programme forecast as at 30 June 2021 had increased by £1m against the approved budget; the position was summarised in Appendix B to the report.  The biggest change related to the North East Bexhill Office Development scheme which had been removed from the programme and had reduced the estimated outturn by £15.737m. Other changes included an approved increase of £6 million to fund the purchase of further Temporary Accommodation (TA) units and scheme slippage from 2020/21 totalling about £9 million;

-       the forecast impact on Reserves was a reduction of £4.282m against the planned use of £3.319m, an increase of £963,000, several capital schemes originally planned to be funded from revenue reserves in 2020/21 had slipped into 2021/22; the additional drawdown was £819,000 and was shown in Appendices B and C to the report.

With regard to planning income, it was noted that whilst the number of applications had increased, the level of income was still below the budgeted amount. Further analysis of the income against the number of applications compared to prior years would be undertaken subject to the information being available.  It was also noted that whilst financially a cautious approach would always be taken, it was hoped that there would be future savings realised due to lower than forecasted planning appeal costs. 

Members were also particularly pleased to note the additional funding for the purchase of additional TA units; the impact of the investment in TA thus far had significantly improved the available provision.  It was noted that the national initiative to assist those rough sleeping would continue. 

RESOLVED: That the:

1) report be noted; and

2) grant offer of £391,050 from the Ministry of Housing, Communities and Local Government to support the purchase of further accommodation units as part of the East Sussex Rough Sleeper Initiative be approved.