Agenda item

To receive and consider the Quarter 3 Performance Report 2021/22 including Key Performance Indicators (KPIs) and Budget Monitoring.

The Executive Member for Corporate Policy and Resources presented the Quarter 3 Performance Report 2021/22 which related to the period October to December 2021. Of the ten Key Performance Indicators, seven were on target and three were outside their tolerance. Those outside their tolerance were:

·         Council Tax collection – there had been a delay in Council Tax recovery due to the impact of Covid-19 and the closure of courts. Measures were in place to improve collection performance.

·         Business Rates Collection – Business rates relief and the economic situation due to Covid-19 had led to rent recalculations. However normal collection rates were expected by the end of Quarter 4.

·         Affordable Housing Completions – completions were off target, but units were often completed in batches; a significant number of housing projects were expected to be completed later in the year which would bring numbers in line with the target.

Two new Key Performance Indicators were proposed for 2022/23:

·      Handling of Complaints – The Council was upgrading its complaints handling system and expected to be able to report on key metrics associated with complaints.

·      Sustainability – reduction in the Council’s carbon footprint compared to 2019/20 baseline.

Committee Members asked questions in the following areas:

Affordable Housing Completion – the target for affordable housing had not been met; Members asked how the completion of the RNIB housing project would assist with this when there was no affordable housing included in this project. It was reported that housing projects were in line to deliver roughly within target; 1,600 dwellings were under construction, 208 of these being affordable housing. The Project and Performance Team Leader would check the percentage of affordable housing on the RNIB site.

Members also questioned whether the affordable housing in progress would reach the target of 22%. It was reported that the Local Plan set a target for the entire period of the Local Plan. It was pointed out that affordable housing and non-affordable housing was delivered (and completions reported) differently by industry to the Council, which provides some challenges when tracking trends.

KPI 4 Staff Sickness – Reigate has the second highest rate of Covid-19 in Surrey; Members asked whether staff had been working from home whilst having Covid-19. Members were informed that during the pandemic, short term sickness absence had decreased, however, staff were encouraged not to come into work if they were sick and should not be working at all if they were unwell. The full effect of Covid-19 had not been felt with regards to mental health, but a wealth of support was in place if needed. The reception area would reopen the following week (w/c 21/03/2022) and offices would reopen over the coming weeks, however, hybrid working was working well and had benefits.

KPI benchmarking – Members enquired whether KPIs could be benchmarked against neighbouring boroughs. It was agreed that this should be possible, and the Projects and Performance Team would work with the Portfolio Holder to explore this.

The Deputy Leader and Executive Member for Finance and Governance provided some Expenditure and Funding headlines:

·           Council tax was at 97.88% collection and at the end of the year would be 1% below normal figures.

·           There was a £17.133 million forecast outturn, with a potential underspend of almost £700,000.

·           Parking income showed a shortfall of just over £1 million but was slowly recovering.

·           £354,000 Government funding had been received for Covid-19 losses. Further Covid-19 related grants for businesses were still being paid.

Members asked questions in the following areas:

Covid-19 related expenditure – Members asked if the £2 million earmarked for Covid-related expenditure and income losses was funded from Government grants. This was confirmed. Members were informed that a maximum of 70% of Covid income losses had been funded by the Government in 2020/21 and the first quarter of 2021/22, the remainder was being funded from these reserves.

Service Budgets – Members asked whether there was a revenue opportunity for Revenues, Benefits and Fraud to generate more income. It was confirmed that was a possible business opportunity providing services to other neighbouring councils but there are limits on the amount of income that could be generated in this way.

Members asked what was planned for the funds allocated for commercial investment. It was reported that just over £60million remains the total allocated for commercial investments, but this would no longer be reported in the capital programme until individual business cases had been approved.

Members asked whether the budget savings made in Electoral Services could be continued in further years. It was reported that services were under constant review. Tablets and voter ID checks were implemented; at this stage it was not known whether the savings would continue.

Members asked whether the reductions in DWP subsidy in Revenues, Benefits and Fraud could be controlled. The subsidy is received to repay the cost of benefits paid out. The budget for 2022/23 had been adjusted to reflect the lower amounts claimed and therefore reimbursed.

Members asked for an explanation of the decrease of £312,000 in investment income. It was explained that the income forecast for this year had been compared to the actual income for the previous year, as previously requested by Members. Members asked about the delay in capital spending on Beech House due to vacancies in the building, and its impact on the revenue budget. The Interim Head of Finance undertook to provide a more detailed follow-up written answer after the meeting.

Savings on CCTV Budget – As there had been an underspend on the CCTV budget, Members asked if an ANPR camera could be installed in Redhill. It was explained that following a review and decision by the Executive last year, CCTV coverage had been revised and this had resulted in the underspend. ANPR cameras were installed and controlled by the Police. The Head of People would pass on the request to the Neighbourhoods Team for consideration.

RESOLVED – that the Committee

    I.          Noted the Key Performance Indicator performance for Q3 2021/22 as detailed in the report and Annex 1 and made observations to the Executive;

  II.          Noted the Key Performance Indicators to be reported on in 2022/23 as detailed in Annex 1.1 and made observations to the Executive;

 III.          Noted the Budget Monitoring forecasts for Q3 2021/22 as detailed in the report and at Annexes 2 and 3 and made observations to the Executive.