To consider a report from the Leader and the Director of Finance and Systems.

The Leader went through the budget report and informed the Committee that the outturn was estimated at £4.97M in period 8 which was an improvement of £1.09M since period 6 and if the impact of inflation was taken away the Council would have achieved an underspend during the year. The Leader listed some key overspends during the year which included the £656K overspend in children's placements and £1.266M overspend in home to school transport. The Council’s strategic investments were estimated to be £1.89M lower than forecasted and there was a £1.93M underspend in the Staffing budget. There was also £2.23M of investment income from surplus cash balances for the year to date due to the increases to the base interest rates by the bank of England. Following his introduction, the Leader welcomed any questions from the Committee and those in attendance.

The Executive Member for Economy and Regeneration noted the hard work that had gone into managing the Council budget during the difficult times the Council faced and the fact that the Council would have achieved an underspend if it was not for the impact of inflation was testament to that work. The Leader thanked the Executive Member for Economy and Regeneration for her comments and stated that the Council’s ability to manage the impacts of inflation were in large part due to the efforts of the Corporate Leadership Team, in particular the Director of Finance and Systems and his team.

Councillor Whetton asked whether more information could be shared on the impact of the cost-of-living crisis upon council tax income. The Corporate Director of Finance and Systems responded to Councillor Whetton that council tax receipts within Trafford were buoyant and had been during the pandemic and it appeared as though it would continue to be buoyant during the cost-of-living crisis. The Corporate Director of Finance and Systems added that this was monitored regularly and the latest figures showed the Council’s position was healthy.

Councillor Newgrosh asked for the reasons behind the home to school transport overspend. The Leader responded to Councillor Newgrosh informing him that the overspend was in part due to the cost of fuel, the difficulty of finding providers, and an increase in demand. The Corporate Director of Children’s Services added that the Council had seen an exponential increase in Educational Help and Care Plans (EHCPs) which when combined with the high demand for school places meant more children with EHCPs had to travel further to school.

Councillor Jerrome noted on page 54 of the report that there had been a rise in emissions on the A56 and asked whether the budget was failing to reduce emissions on that road. The Leader stated that he would have to review that section of the report and get back to Councillor Jerrome.

The Leader then moved the recommendations of the report, and they were approved.

RESOLVED:

1)    That the updated summary positions on the revenue budget, collection fund, capital programme and Prudential Indictors be noted.

2)    That the virement approved by the Director of Finance and Systems within the Capital Programme of £220k held under the hybrid working scheme within Place Directorate to the Office 365 programme within Finance and Systems Directorate be noted.

3)    That the additional capital grant of up to £2.97m for a Local Authority Housing Fund, subject to the submission of a programme to DLUHC on 25 January 2023 be noted.

4)    That the Prudential Code now requires that the Council report and monitor Prudential Indicators on at least a quarterly basis during the financial year and will be reported in this bi-monthly monitoring report going forward be noted.

5)    That the contents of the Corporate Plan Performance for Quarter 1 and 2 be noted.