Agenda item

Quarter 2 Performance Report 2021/22

Deputy Leader and Executive Member for Finance and Governance and Executive Member for Corporate Policy and Resources.

Minutes:

The Executive Member for Corporate Policy and Resources, Councillor Lewanski, introduced the report which outlined the Council’s performance up to the end of Quarter 2.

 

Of the ten indicators, eight were on target or within the agreed tolerance. There were two that were red rated:

·       KPI 2 – Business Rates collection had been affected by the recalculation of the Retail Rate Relief earlier in the year. This resulted in some instalments being set back and the creation of new instalment plans. It was expected that performance would catch up throughout the year.

·       KPI 7 – Affordable Housing Completion. 24 affordable houses had been delivered this year, against a target of 50. However, a significant number of housing development projects were expected to reach completion later in the year, bringing the level in line with the target.

 

In response to questions from Visiting Members, the work of the Council to deliver affordable housing was highlighted including projects in Horley for single occupants and the Cromwell Road development. The Council was also working with the YMCA to deliver housing for young people with additional support needs. It was recognised that these weren’t sufficient in themselves to meet overall need, but the Planning Authority worked hard with developers to increase the number of affordable units being developed.

 

The Deputy Leader and Executive Member for Finance and Governance, Councillor Schofield, outlined the Council’s Revenue and Capital Budget position for Quarter 2.

 

In terms of the Revenue Budget, the projected full year outturn was £17.841m against a management budget of £17.808m which resulted in a minor underspend for the year of £33k. Details of the more significant budget variances were set out in the report.

 

Councillor Schofield explained that the budget forecast was before income shortfalls, as a result of the Covid-19 pandemic, had been taken into account. The Council was confident that income streams had started to be restored, but parking income remained the main area of concern. The shortfall was to be funded through £354k claimed from Government and drawing on £2m Earmarked Reserve. Expenditure on the continued pandemic response was forecast to be funded within grants made available by the Government.

 

The full year Capital Programme forecast at the end of Quarter 2 was £88m (62%) below the approved Programme for the year. The variance was as a result of £87m slippage and a £650k net underspend, as, substantial budgets had been allocated for investment in Housing and Commercial developments and the related business cases had not been developed.

 

The Chairman of the Overview and Scrutiny Committee, Councillor Harrison, explained that the Committee considered the report at its meeting on 9 December. Members of the Committee had asked questions in relation to community centres, revenue benefits and fraud, leisure services and the housing delivery programme. Officers had agreed to investigate whether, due to a shortfall in spending in Disabled Facilities Grants and the Handy Person Scheme, funding could be made available for vulnerable residents requiring essential items.

 

In response to a question from a Visiting Member, it was confirmed that the £2m drawn from Earmarked Reserves was funded from unspent 2020/21 Covid-19 grants from Government that were set aside at year end.

 

RESOLVED to:

 

1.    Note Key performance Indicator performance for Q2 2021/22 as detailed in the report and in Annex 1;

 

2.    Note the Budget Monitoring forecasts for Q2 2021/22 as detailed in the report and at Annexes 2 and 3.

Supporting documents: