Agenda item

The Executive Member for Corporate Policy and Resources and the Executive Member for Finance and Governance.

Members received the Quarter 2 2022/23 performance report which gave an overview of the Council’s performance from July to September 2022 including Key Performance Indicator (KPI) reporting, as well as revenue and capital budget monitoring and a progress update on the Financial Sustainability Programme.

The Executive Member for Policy and Resources, Councillor Lewanski, updated the Committee on the Council’s Key Performance Indicators – of the 10 KPIs reported on, nine were on target or within the agreed tolerance. One red-rated indicator (KPI 3 – Staff Turnover) showed 16% turnover as against a target of 12%.  During COVID-19, turnover had been lower than expected and was now ‘catching up’ due to the strong labour market. 

The report had been considered by Overview and Scrutiny Committee on 8 December 2022. Overview and Scrutiny Committee Chairman, Councillor Harrison, noted that the Committee had commented on affordable housing completions (KPI 7), requested information on projects that had received planning permission, but work had yet to commence,  staff turnover (KPI 3) and food waste (KPI 10 Recycling).

Visiting Members asked questions on the following areas:

Staff turnover – Members asked if the rise in staff turnover was across the whole organisation or in a particular department. Officers confirmed that the higher turnover was not concentrated in one department but across the whole organisation. Turnover was continually monitored through exit interviews as staff left for new jobs, life changes following COVID-19 or took retirement. There was a competitive jobs market following the pandemic, making it difficult to recruit skilled staff in some areas.

Affordable housing – Members thanked officers for the breakdown in types of affordable housing that had been provided to Members which showed the affordable housing in the Borough that was for social rent which made it easier to track progress which was positive.

Deputy Leader and Portfolio Holder for Finance and Governance, Councillor Schofield, presented the Revenue and Capital Budget position for quarter 2 to 30 September 2022. On the revenue budget the projected full year outturn was £19.113m against a management budget of £20.062m resulting in an underspend for the year of £948k (4.7%). The full year Capital Programme forecast at the end of quarter 2 was £31.86m (53%) below the approved Programme for the year. The variance was a result of £35.54m slippage and a £0.24m net underspend. The reason for the forecast slippage was that while substantial budgets had previously been allocated for investment in housing developments, the related business cases had not yet been developed.

The report had been considered by the Overview and Scrutiny Committee and Chairman, Councillor Harrison, noted that a positive forecast outturn and clearly favourable variance was highly satisfactory. Areas highlighted by O&S Members included questions on inflation, energy costs and the favourable variance shown in the return of car parking income. Visiting Members welcomed the separate items set out in the budget monitoring report to show where there was funding that had been allocated for investment such as the housing strategy. They asked about the environmental sustainability reserve and spending in this area. The Leader said this would be looked at in the coming year.

The Leader thanked Councillor Harrison and the Overview and Scrutiny Committee for their useful and constructive feedback to Executive.

RESOLVED – that the Executive:

1.     Notes the Key Performance Indicator performance for Q2 2022/23 as detailed in the report and Annex 1

2.     Notes the Budget monitoring forecasts for Q2 2022/23 as detailed in the report and at Annexes 2 and 3.