To consider a report of the Executive Member for Finance and Director of Finance.

The Leader presented the Budget Monitoring 2023-24 Period 8 (April 2023 to November 2023). He emphasised the challenging financial environment he informed the Executive that it is encouraging to see the outturn forecast has improved from Period 6 £0.51m overspend to Period 8 £0.59m underspend. This is positive news which reflects the effectiveness of our financial management practices and those additional controls put in place to contain the forecast adverse outturn anticipated earlier in the year. The report sets out the variances from budget of each directorate and gives an update on the capital progress set out in Section 6 and Annex 3 of the report.

The Director of Finance and Systems reiterated the Leader’s presentation that the movement from Period 6 is positive particularly as we have not called on reserves other than what had been included in the Budget. The demand pressures are reflected in the 2024-25 Budget planning. He also referred to Contingencies which for this year which was also positive even though there was a little way to go.

The Leader thanked the Director of Finance and Systems and his colleagues for all the work they do in supporting the finances.

Councillor Evans made the following points –

(i)             With regard to Business Rates $2.2 million deficit so that amount the Council will get back.

(ii)            How have we managed to get a rent reduction of £63,000 when the market is good.

(iii)          Building Control is reporting a loss and how does that happen.

(iv)          The language around Treasury Management reducing the position of underborrow which was £93 Million which suggests this is a problem whereas its actually a bonus. Please revisit that language.

(v)           He thought that GMCA were paying for charging points, outurn projection is £0 page 252 refers. We should be making money from this.

(vi)          The language on page 264 – the first line of the first paragraph does not make sense to an outside reader and needs to be clearer.

(vii)         Page 227 – the removal of the scheme for the two resomation cremators at the crematorium of £1.95 million, he is stunned that this amount was in the budget for an experimental process.

The Leader informed the Member that the two points on language will be taken away with a view to making the points clearer. On the resomation point this was looked at from an environmental stance but following a review of this it was decided that it was not sustainable.

Director of Finance and Systems referred to the Business Rates issue he advised that the challenge this year has been maintaining income levels and that this is a timing issue. So with regard to the Marks and Spencer unit they are waiting for the Valuation Office Agency to put the unit back onto the rating list and this will be payable from when they open and that has been accommodated in Budget Planning for 2024025.

The Director of Growth and Regulatory Service advised that Building Control operates as a business. Currently it is short on staff and therefore did not have therefore earners in place. When the new staff are in place there is a time lag between the fee earnings that those new staff will bring in. The key here being that Building Control is a trading service and is subject to variances.

The Leader referred to EV charging and advised that we are looking to expand the number of EV charging points and the revenue from that.

Councillor Ennis referred to the need for improved funding and drew attention to the government’s recent announcement and do we know at this stage what amount we are likely to get and which services it will affect spending cuts.

The Leader advised that the government announcement about additional funding was one of the reasons why there is a delay in the publication of papers because we are still going through the government information announced last week. There is meeting following this meeting tonight with the Corporate Leadership team around those papers as they look to balance the Budget. After the Autumn Statement and the Settlement at the end of the year that was about £7.4 million so we are looking to close that gap. With proper funding there is so much more that Trafford could do for its residents. Trafford authority is one of the lowest funded per head.

Councillor Butt made reference to the Variances in Table 1, page 220, and in particular the Legal and Governance costs and Finance and Systems and what has caused the increases.

The Head of Legal and Governance and Deputy Monitoring Officer advised that this has been discussed within the Employment Committee. The Legal and Governance have been carrying a significant number of vacancies over a number of years which has resulted in an increase in Agency spend. There has been a redesigned service which was implemented on 1 January this year so we hope to be able to recruit to permanent posts to reduce the spend pressures.

Th Leader advised that in terms of the Finance and Systems, Trafford Assist has been the pressure point with people approaching the Council for help and that is why there is an increase in that budget area.

Councillor Welton referred to the cost of the delayed opening of the Regent Road Car Park and asked is there a point where it would become more cost effective for the Council to get involved to finish the project or can we push the developer to finish it.

The Executive Member for Economy and Regeneration advised that the Council is not at the point where it would be cost effective for the Council to finish the work. The car park was inspected in January and there were 180 snags which impacted on the structure. We are considering all avenues

to get the work completed as soon as possible.

Councillor Evans asked could the developer be pursued for the Council’s loss.

The Executive Member for Economy and Regeneration is not aware of the legal implications but the Council is running of patience with the developer.

RESOLVED: That the Executive

a)    note the report and the estimated revenue outturn position showing a budget underspend of £0.59m a positive movement of £1.09m since Period 6;

b)    note the update on the Capital Programme as detailed in Section 6 and Annex 3;

c)    note that due to the positive movements in the estimated outturn since Period 6, that no new management actions are required at this point in 2023/24.