Agenda item

That the Committee:

(i)             Note Key Performance Indicator (KPI) performance for Q1 2021/22 as detailed in the report and at Annex 1 and make any observations to the Executive;

(ii)            Note the Budget Monitoring forecasts for Q1 2021/22 as detailed in the report and at Annex 2 and make any observations to the Executive.

The Committee received reports on the Council’s performance for the first quarter of 2021/22 including Key Performance Indictor (KPI) reporting, as well as revenue and budget monitoring. The reports were due to go to the Executive on 19 September 2021.

The Portfolio Holder for Corporate Policy and Resources, Councillor Lewanski, introduced the KPI report by noting that, out of the 10 KPIs, 2 were red rated:

·       KPI2 which related to business rates collection.

·       KPI10 which related to recycling.

Members discussed and asked questions on the following areas:

Recycling – It was noted that the target of 60% was a stretch target, although this was open to discussion. It was noted that the target remained 60% and that the Committee would be consulted on the setting of future targets later in the year. It was noted that the large increase in overall tonnage collected was disproportionately in favour of residual waste.

Business Rates – It was identified that the unallocated business rates in a suspense account had not yet been allocated due to the need to ascertain the correct payer. The Committee noted that, once allocated, the indicator would be within tolerance.

The Deputy Leader and Portfolio Holder for Finance and Governance, Councillor Schofield, outlined the Revenue Budget and Capital Programme performance for Q1 2021/22. The projected full year outturn for the Revenue Budget was £17.67m against a management budget of £17.696m and there were no material variances to report. A cautious approach continued to be taken in relation to the Financial impacts of the pandemic; the main area of concern remained forecast income shortfalls compared to budget. The Capital Programme forecast was 60% below the approved Programme at £56.29m. This was due to forecast slippage of budgets to 2022/23 and a small net underspend.

During the discussion:

·       It was noted that major concerns existed which related to COVID-19 income losses which were forecast for the year on a prudent basis at £2.3m, with offsetting government funding which had ended after Q1 of just under £0.5m. A £2.0m Earmarked Reserve had been set aside for these income losses in 2021/22.

·       It was noted that this would be a serious challenge for the 2022/23 budget, requiring additional steps to re-establish income streams or to identify cost savings to offset them.

·       In relation to Car Parking income, members confirmed that they expected long term decline with more people working from home, and reduced retail and leisure activity. In relation to Leisure Services, the fee due from the contracted Leisure Provider had been waived during the pandemic; the Interim Head of Paid Service noted that the provider had now put in a proposition for the management fee going forward that was due to be considered soon. It was noted that the impact of the pandemic on commercial income/rents at £40k was substantially less than the loss experienced by many other councils.

·       Overall, it was identified that, despite being early in the 2021/22 budget cycle, it appeared there were some improvements to the income forecasts.

·       In relation to Capital, it was questioned whether the delays in the Commercial Investments and Housing Delivery programmes would provide savings in the cost of borrowing. This was confirmed.

RESOLVED:

1.    To note Key Performance Indicator (KPI) performance for Q1 2021/22 as detailed in the report and at Annex 1;

2.       To note the Budget Monitoring forecasts for Q1 2021/22 as detailed in the report and at Annex 2.