Agenda item

Report of the Director of Finance to follow.

The Cabinet Member (Finance and Public Protection) highlighted positive changes in the revenue position since the last quarter with a predicted overspend reduced to circa £59,000. Other key points noted included overspends across all directorates with regards to staffing costs with the recent pay award being agreed, significantly higher costs for waste collection services and around homelessness than budgeted for. Grant funding of over £200,000 had also been received in quarter two which had helped to mitigate the overspends, as had around £100,000 additional revenue from the fleet maintenance contract with Chorley Council.

Increases in staffing costs as a result of the recent pay away referenced within the report was raised. It was acknowledged that the pay award had presented challenges to setting a budget, however a 5% increase had been budgeted for which placed the Council in a much better position to facilitate than many other local authorities. In relation to costs associated with agency staff – it was noted that this can often be the best solution to complete bespoke pieces of work where specialised expertise may only be required for a short period of time, or as a short-term solution to recruitment challenges in the current environment.

Responding to concerns raised over meeting the demand for support around homelessness, a number of areas were noted in looking to address the issue, such as the Select Move system and working with housing providers in the borough but it was acknowledged that more needed to be done.

On the risk of funding from external grants needing to be returned, Members welcomed the offer to provide a list of grants and any deadlines to the Committee.

A key reason for costs increasing in the waste service was a result of incomplete information being provided at the time the contract was brought in-house, with staff wages higher than had been budgeted for. In addition, an increase in full time contracts and better terms and conditions was also a factor.

It was confirmed to Members that Worden Hall was now fully open and occupied following a period of renovation which would provide a revenue stream for the Council moving forward with several events already having been held in recent weeks. The Committee heard that the vision for the Hall included community use in addition to commercial use.

Further clarification was sought over the Covid recovery reserve. The Committee were informed that the £150,000 for the Music in the Park would be transferred to the 2024/25 budget. The £16,000 remaining in the Community Hub reserve had not been allocated and was expected to be carried forward to the following years Community Hub fund.

It was subsequently;

Resolved: (Unanimously)

That the Corporate, Performance and Budget Scrutiny Committee;

1.    thanks the Cabinet Member and Principal Management Accountant for presenting the report and answering its questions;

2.    asks for an update on the timescales for the next stage of the Penwortham Masterplan be provided to the Committee;

3.    is grateful for the offer of further information being provided on the external funding budgets that are at risk of being returned and steps being taken to spend the budget; and

4.    looks forward to more detailed information being provided on the COVID recovery reserve.