Members received and considered the report of the Interim Deputy Chief Executive on the Revenue Budget and Capital Programme Monitoring as at 30 September 2023.  The report contained details of the significant variations of the Revenue Budget and updated Capital Programme and included a brief update on the Collection Fund performance.

The forecast outturn for the 2023/24 financial year was based on the position as at 30 September 2023 and 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 was looking to address the financial position of the Council. The Interim S151 Officer would work closely with Heads of Services and Members to reduce areas of overspend and the impact on reserves.

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 however noted that this was due to the intentional pause and review of the capital programme and not as a result of general slippage. 

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.

Members had the opportunity to ask questions and the following points were noted during the discussions:

•     Temporary Accommodation (TA) costs would have been far higher without the Council’s TA purchase scheme, as the budget had tripled over the last few years. This was a pressure being experienced nationally;

•     the budget consultation had already received 400 responses to date and the Council had undertaken more online engagement;

•     the Capital Programme was a work-in-progress and was currently under review;

•     the Financial Stability Programme (FSP), which had been underpinned by the devolution of services, would not achieve the anticipated savings. The updated Medium Term Financial Strategy removed the current FSP and replaced it with a new ‘Fit for the Future’ financial resilience programme;

•     increased investment income was based on relatively high interest rates and additional availability of resources due to the pause and review of the capital programme;

•     funding had been set aside in the Capital Programme to meet potential payments in respect of contributions towards dilapidations at Rye Swimming Pool and Bexhill Leisure Centre and Pool;

•     an application had been submitted and awarded for revenue to contribute to increased running costs of the swimming pools and the leisure centre due to the rise in energy prices and a second application had been made for capital in order to invest in green technology and energy saving schemes;

•     funding for the Changing Places Toilet scheme at Camber was to be moved to a scheme to be established within the grounds of Bexhill Museum in Egerton Park, Bexhill due to timescale restrictions on its delivery and drawdown deadlines for the grant.  Bexhill Museum would be responsible for its ongoing maintenance;

•     further funding was being sought for the Camber Sands Welcome Centre which would bring the toilets scheme back in due course if successful;

•     savings from closing some of the public conveniences for the current financial year would be limited. The annual budget was approximately £300k, with a further £200k for support services, therefore the current closures would give an annual saving of approximately £0.25m;

•     the impact on the community of the public convenience closures would be assessed and consideration given to the best way forward to deliver the service within the current financial constraints;

•     officers had begun discussions with neighbouring authorities about the possibility of further shared services; and

•     the Barnhorn Green GP Surgery was experiencing a delay due to available revenue funding no longer being able to cover the cost of the build.

RESOLVED: That the report be noted.

(When it first became apparent, Councillors Clark, Field each declared a Personal Interest in this matter as Members of East Sussex County Council and in accordance with the Members’ Code of Conduct remained in the meeting during the consideration thereof).

(When it first became apparent, Councillor Maynard declared a Personal Interest in this matter as an Executive Member of East Sussex County Council and in accordance with the Members’ Code of Conduct remained in the meeting during the consideration thereof).