Enterprise and Communities - Revenue Monitoring Report

North Lanarkshire Council · 16 November 2022
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North Lanarkshire Council
Report
Housing Committee 
Does this report require to be approved? ☐ Yes   ☒ No
Ref GT/JMcG Date 16/11/22 
Revenue Monitoring Report – Enterprise and Communities 
From  Derek Brown, Depute Chief Executive  
E-mail telferg@northlan.gov.uk Telephone
Greg Telfer, Business
Finance Manager, 07583
010692 
1. Background 
1.1 The Council’s approved Financial Regulations require services to remain within their
approved budgetary provision, and to report all significant deviations – defined as the
higher of £100,000 or 5% - within their budget monitoring reports. Where significant
deviations are identified, services must provide explanatory commentary, outline the
action required to rectify such deviations and where relevant, must also highlight the
impact this has on other budget headings. 
Executive Summary 
This report provides a summary of the financial performance of the Enterprise and
Communities Service for the period 1 April 2021 to 16 September 2022 (Period 6). The
report illustrates the projected outturn as at 31 March 2023, with major outturn variances
highlighted and explained as per the Council’s approved Financial Regulations. 
In summary, the Enterprise and Communities Service is currently forecasting an overspend
of £3.958m which is in relation to inflationary pressures (£3.068m), which will be offset by
a corporate contingency and also the reallocation of the digital savings to Services
(£0.890m) for which the Service continues to work with Business and Digital to progress
plans for delivery of savings.   
Recommendations 
It is recommended that Committee: 
(1) Acknowledges the financial position of the 2023/23 Enterprise and Communities
revenue budget. 
The Plan for North Lanarkshire
Priority  Improve economic opportunities and outcomes
Ambition statement (25) Ensure intelligent use of data and information to support fully
evidence based decision making and future planning

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1.2 The most significant financial risk facing Enterprise and Communities during 2022/23
is inflationary pressures across a number of service areas including fuel and utilities,
food costs, waste tonnage and contractual inflation on property and road maintenance
contracts. At Period 6 it is forecast that the impact of this is £3.068m and this will
continue to be monitored and reported through service budget monitoring reports
alongside the ongoing impact of the curtailment of non-essential expenditure with the
overall impact managed corporately.
2. Report
Summary of Financial Position
2.1 The Council approved its General Fund Revenue Budget on 17th February 2022, of
which £146.298m (17%) represented the approved Net Revenue Budget for Enterprise
and Communities. Since then there has been additional budget added for Scottish
Government funding for climate change (£0.075m), a budget transfers to other services
mainly (£0.168m) and the transfer of digital savings targets (£1.535m) resulting in a
revised Enterprise and Communities Net Budget of £144.670m.
2.1.1 Enterprise and Communities is forecasting an overspend of £3.958m in relation to
inflationary pressures and a delay in the delivery of savings linked to the DigitalNL
programme. Like most organisations, the Council is facing significant pressures linked
to the wider economic outlook and high inflation. Across the service this is having an
impact on the cost of energy, waste disposal, fuel, food and materials. The Council
has set aside approximately £9.4m corporately to support unbudgeted inflationary
pressures faced by services.
2.1.2 In addition, the Service faces a cost pressure attributable to the delay in implementation
of savings linked to the DigitalNL programme (£0.890m). The service continues to work
with Business and Digital to progress plans for the delivery of these savings.
2.1.3 Section 2.2 provides commentary on the financial performance of the Service per
division excluding the impacts of inflation and digital savings. In addition, Appendices
1 to 7 of this report provide further explanation of the significant budget variations
contributing to this outturn position.
2.1.4 The 2022/23 Enterprise and Communities budget incorporates £1.545m of savings
previously approved by Council on 2 March 2021 with £0.797m of savings (52%)
deliverable within the current financial year. Further information regarding particularly
challenging savings is noted in paragraph 2.4 below.
Analysis of Significant Variations
2.2 Excluding the impact of inflation and digital savings Enterprise and Communities
service currently forecasts a year-end balanced budget position. As at Period 6, there
are compensating variances across the divisions as follows:
2.2.1 Environmental Assets (£0.215m Underspend)
The Environmental Assets division projects vacancy savings of £1.061m. This is
partially offset by costs in relation to electric vehicle charging for which there has been
significantly increased demand and unit costs (£0.466m). In addition, the division has
also experienced increased costs for waste disposal (£0.180m).

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2.2.2 Asset and Procurement Solutions (£0.088m overspend)
The division projects an overspend of £0.258m within property costs due to a delay in
the timing of office accommodation savings (£0.473m) partially offset by a reduction in
repairs and temporary rates reliefs for empty properties. Within the provision of school
meals the service expects an under recovery in paid meal income (£0.365m) which is
fully offset by vacancies across the division.
2.2.3 Regulatory Service and Waste Solutions (£0.789m overspend)
The overspend is mainly as a result of increased agency and overtime costs in Waste
as a result of delays in recruitment (£0.431m), increased requirement for vehicle parts
(£0.204m) and under-recoveries in Special Uplifts as a result of reduced demand
(£0.161m).
2.2.4 Planning and Regeneration (£0.335m underspend)
Within Planning and Regeneration vacancy savings and additional grant income
contribute to a projected underspend of £0.335m.
2.2.5 Included within the reported outturn is the Council’s trading services. For 2022/23 the
Council approved a surplus budget of £0.596m. The Council must comply with a
statutory requirement to at least break-even over a rolling three year period. The
combined surplus in 2019/20, 2020/21 and 2021/22 was £0.380m. As at Period 6 there
are no significant variations to report with regards to trading services.
2.2.6 Payments to other bodies are detailed in Appendix 3. This expenditure category
accounts for £21.189m with a minor overspend of £0.063m forecasted for 2022/23
within payments to roads contractors.
Earmarked and One-off Reserves
2.3 Enterprise and Communities was given approval to earmark £17.536m of resources
during the completion of the 2021/22 annual accounts. It is forecast that £14.630m of
the reserve balance will be utilised in 2022/23. The remaining balance of £2.906m is
required for the original purpose in future years. Appendix 4 details the individual
Earmarked Reserves.
2022/23 Budget Savings and Growth
2.4.1 The Service uses a variety of information, records and processes to monitor
achievement of its approved budget savings of £1.545m. As at Period 5, £0.797m
(52%) of its approved savings are achievable during the year. The gap of £0.748m
represents timing delay in office rationalisation savings (£0.473m), the previously
approved reduction in school cleaning (£0.200m, offset with an Earmarked Reserve in
22/23) and delays in staffing savings (£0.078m). This currently excludes the impact of
savings linked to the DigitalNL programme.
2.4.2 As part of the Council’s investment budgets for 2021/22 and 2022/23, Enterprise and
Communities was allocated £9.228m towards a number of one-off investments.
Appendix 6 highlights in detail how these are being utilised across the Service.
Management Actions
2.5 The Service continues to take a range of corrective management actions to ensure it
manages cost pressures. This includes curtailment of non-essential spend and
monitoring of vacancies.

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Change Management 
2.6 The Service expects to use £0.125m of the Council’s Change Management Fund
mainly to support the supply of new bins and materials within Environmental Assets. 
Costs within the Change Management Fund are not included in the Service outturn
position. 
3. Measures of success 
3.1  The Service continues to operate within the approved budget resources. 
4. Supporting documentation 
Appendix 1  Objective Analysis 
Appendix 2  Subjective Analysis 
Appendix 3  Payments to Other Bodies Analysis 
Appendix 4  Status of Earmarked Reserves 
Appendix 5  Challenging Savings 
Appendix 6  One-Off Investments   
Derek Brown
Depute Chief Executive

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5. Impacts ( http://connect/report-template-guidance ) 
5.1 Public Sector Equality Duty and Fairer Scotland Duty
Does the report contain information that has an impact as a result of the Public
Sector Equality Duty and/or Fairer Scotland Duty?
Yes ☐ No ☒
If Yes, please provide a brief summary of the impact? 
If Yes, has an assessment been carried out and published on the council’s website?
https://www.northlanarkshire.gov.uk/your-community/equalities/equality-and-fairer-
scotland-duty-impact-assessments
Yes ☐ No ☐
5.2 Financial impact
Does the report contain any financial impacts?
Yes ☒ No ☐
If Yes, have all relevant financial impacts have been discussed and agreed with
Financial Solutions?
Yes ☒ No ☐
If Yes, please provide a brief summary of the impact? 
The Service continues to curtail non-essential expenditure and take management
action to minimise the impact of cost pressures on the Council’s overall financial
position. 
5.3 HR policy impact 
Does the report contain any HR policy or procedure impacts?
Yes ☐ No ☒
If Yes, have all relevant HR impacts have been discussed and agreed with People
and Organisational Development?
Yes ☐ No ☐
If Yes, please provide a brief summary of the impact? 
5.4 Legal impact
Does the report contain any legal impacts (such as general legal matters, statutory
considerations (including employment law considerations), or new legislation)?
Yes ☐ No ☒
If Yes, have all relevant legal impacts have been discussed and agreed with Legal
and Democratic Solutions?
Yes ☐ No ☐
If Yes, please provide a brief summary of the impact? 
5.5 Data protection impact 
Does the report / project / practice contain or involve the processing of personal
data?  
Yes ☐ No ☒
If Yes, is the processing of this personal data likely to result in a high risk to the data
subject?
Yes ☐ No ☐
If Yes, has a Data Protection Impact Assessment (DPIA) been carried out and e-
mailed to dataprotection@northlan.gov.uk 
Yes ☐ No ☐

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5.6 Technology / Digital impact
Does the report contain information that has an impact on either technology, digital
transformation, service redesign / business change processes, data management, or
connectivity / broadband / Wi-Fi?
Yes ☐ No ☒
If Yes, please provide a brief summary of the impact? 
Where the impact identifies a requirement for technology, has an assessment been
carried out (or scheduled) by the Enterprise Architecture Governance Group
(EAGG)? 
Yes ☐ No ☐
5.7 Environmental / Carbon impact
Does the report / project / practice contain information that has an impact on any
environmental or carbon matters?
Yes ☐ No ☒
If Yes, please provide a brief summary of the impact? 
5.8 Communications impact
Does the report contain any information that has an impact on the council’s
communications activities?
Yes ☐ No ☒
If Yes, please provide a brief summary of the impact? 
5.9 Risk impact
Is there a risk impact?
Yes ☒ No ☐
If Yes, please provide a brief summary of the key risks and potential impacts,
highlighting where the risk(s) are assessed and recorded (e.g. Corporate or Service
or Project Risk Registers), and how they are managed? 
All activities undertaken by the Council are subject to risk, and in acknowledging the
Council’s approved Risk Management Strategy, Services managed these as part of
their overall corporate and service planning processes. The current economic climate,
in particular, has the potential to impact upon the Council’s ability to provide quality
services within the approved budget levels. 
To reduce other financial risks, this report was prepared by service based Financial
Solutions personnel in consultation with budget managers, in accordance with the
Financial Regulations.

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Appendix 1
DIVISION OF SERVICE BUDGET ACTUAL ANNUAL PROJECTED MOVEMENT FROM ANALYSIS
TO DATE TO DATE BUDGET OUTTURN % PERIOD 4
(1) (2) (3) (5) (6) (8) (9) (10)
£ £ £ £ %
ENVIRONMENTAL ASSETS 12,939,267 14,710,833 47,427,455 48,161,565 (1.6%) (734,110) Overspend as a result of Utility Inflation / Digital savings £0.948m
and increased usage and price for Electric Vehicle Charging partly
offset by vacancy savings.
REGULATORY SERVICES AND WASTE SOLUTIONS 15,192,896 15,735,580 37,174,707 39,572,638 (6.5%) (2,397,931) Overspend as a result of Inflation mainly for Waste Disposal costs
and Fuel and digital savings £1.609m.  Additional spend in agency
costs/overtime due to recruitment delays parly offset by vacancies,
also reduced demand for Special Uplift resulting in an under
recovery in income.
ASSETS & PROCUREMENT 18,091,563 17,453,739 38,272,520 39,375,946 (2.9%) (1,103,426) Overspend as a resilt of Utility and Food Inflation and Digital
Savings £1.015m and timing delays in Office Rationalisation savings. 
There is also an under recovery in paid meal income which is offset
by vacancy savings.
PLANNING & REGENERATION 2,057,893 1,949,455 9,764,283 9,428,845 3.4% 335,438 Underspend as a result of Vacancy savings and increased grant
income
HOUSING SOLUTIONS 1,446,692 1,315,815 5,130,715 5,126,528 0.1% 4,187 Minor underspend as vacancy savings and other minor
miscellaneous budget savings offset the Utility inflation and Digital
Savings £0.214m
HOUSING PROPERTY & PROJECTS 3,608,348 3,869,254 7,495,518 7,558,142 (0.8%) (62,624) Overspend as a result of Inflation for Stair & Close lighting
TRADING (313,672) (436,375) (595,542) (595,542) 0.0% (0) Balanced budget
NET EXPENDITURE 53,022,987 54,598,301 144,669,656 148,628,122 (3,958,466)
(0)
(1,575,314) (3,958,466)
335,438
4,187
(62,624)(260,906)
122,703
£
(734,110)
(1,103,426)
(2,397,931)
637,824
108,438
130,877
£
(1,771,567)
(542,684)
(4) (7)
Enterprise & Communities
Revenue Budget Monitoring Reort - Objective Analysis
1st April 2022 - 16th September 2022 (PERIOD 06)
YEAR TO DATE PROVISIONAL
VARIANCE VARIANCE

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Appendix 2
CATEGORY BUDGET ACTUAL ANNUAL PROJECTED
MOVEMENT
FROM ANALYSIS
TO DATE TO DATE BUDGET OUTTURN % PERIOD 4
(1) (2) (3) (5) (6) (8) (9) (10)
£ £ £ £ %
EMPLOYEE COSTS 42,459,479 40,362,853 96,823,593 95,639,150 1.2% 1,171,967 Vacancy savings partly offset by overtime and turnover
PROPERTY COSTS 10,972,267 11,974,262 39,026,581 41,029,047 (5.1%) (1,849,310) Timing delay in Office rationalisation saving and increased waste
disposal costs, inflation increases for utilities
SUPPLIES & SERVICES 5,246,531 6,068,941 17,817,122 19,765,686 (10.9%) (2,086,031) Utility increases for Street Lighting and increase demand and cost
for electric car charging, increase IT software costs and agency staff
due to delayed recruitment in Waste.
TRANSPORT & PLANT 2,412,714 2,783,310 5,277,528 6,448,949 (22.2%) (1,169,893) Increased fuel costs as a result of price increases
ADMINISTRATION COSTS 860,697 827,123 7,983,537 8,136,277 (1.9%) (171,693) Increase in consultants fees
PAYMENTS TO OTHER BODIES 6,345,471 5,516,637 21,188,737 21,251,312 (0.3%) (32,304) Minor variance
TRANSFER PAYMENTS 1,707 1,707 584,000 584,000 0.0% 0 Balanced Budget
CAPITAL FINANCING COSTS 4,393,185 5,902,369 32,591,588 32,591,588 0.0% 0 Balanced Budget
REVENUE FINANCING COSTS 0 0 0 0 0.0% 0 Balanced Budget
OTHER EXPENDITURE 726,426 919,500 3,778,062 3,668,692 2.9% 110,554 Underspends in miscellaneous costs and external company
payments.
TOTAL EXPENDITURE 73,418,478 74,356,702 225,070,749 229,114,701 (1.8%) (4,026,710)
INCOME 20,395,491 19,758,402 80,401,092 80,486,579 0.1% 68,245 Minor Variance
NET EXPENDITURE 53,022,987 54,598,301 144,669,656 148,628,122 (2.7%) (3,958,465)(1,575,314)
(2,002,466)
(1,948,564)
(1,171,421)
(152,740)
(62,575)
0
0
0
109,370
(4,043,952)
85,486
(3,958,466)
(1,509,184)
0
(193,075)
(938,225)
637,089
(822,410)
(370,596)
33,574
828,834
0
£
2,096,626
£
1,184,443
(1,001,995)
(4) (7)
Enterprise & Communities
Revenue Budget Monitoring Report - Subjective Analysis
1st April 2022 - 16th September 2022 (PERIOD 06)
YEAR TO DATE PROJECTED OUTTURN
VARIANCE VARIANCE

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Appendix 3
DESCRIPTION BUDGET ACTUAL ANNUAL PROJECTED MOVEMENT FROM
TO DATE TO DATE BUDGET OUTTURN % PERIOD 4 TYPICAL AREA OF EXPENDITURE/ANALYSIS OF VARIATIONS
(1) (2) (3) (5) (6) (8) (9) (10)
£ £ £ £ %
PUBLIC ANALYST FEES 133,500 133,500 267,000 267,000 0.00% 0 Balanced budget
AMEY ALLOCATION 2,790,741 2,784,030 11,064,072 11,064,072 0.00% 0 Balanced budget
PAYMENTS TO CONTRACTORS - ROADS MAINT 204,611 248,622 638,433 648,576 -1.59% (8,541) Minor variance
SUB-CONTRACTOR PAYMENTS 295,354 306,847 501,355 522,617 -4.24% (21,262) Minor variance
PSG COUNCIL PROGRAMME 14,476 14,476 242,853 242,853 0.00% 0 Balanced budget
PAYMENTS TO OTHER BODIES - GENERAL 2,296,440 1,495,965 6,846,804 6,843,662 0.05% 1,540 Minor variance
AGENCY FEES 2,315 2,348 208,904 241,342 -15.53% (2,168) Minor Variance
SUPPORT FEES 572,228 511,207 1,289,930 1,289,930 0.00% 0 Balanced budget
OTHER PTOB 35,807 19,642 129,386 131,259 -1.45% (1,873) Minor variance
TOTAL EXPENDITURE 6,345,471 5,516,637 21,188,737 21,251,312 (0.3%) (32,304)
£ £
0
(10,143)
6,711
(44,011)
828,834 (62,575)
61,021 0
16,166 (1,873)
(34) (32,438)
0
(21,262)
0
(11,493)
(4)
VARIANCE
(7)
Enterprise & Communities
Revenue Budget Monitoring Report - Payments to Other Bodies Analysis
1st April 2022 - 16th September 2022 (PERIOD 06)
YEAR TO DATE
VARIANCE
PROJECTED OUTTURN
800,475 3,142
0 0

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Appendix 4
Decription of Earmarked Resource
Value %
Dilapidations APS - Asset Mgt 524 524 0 524 111 524 0 0 0 Costs associated with leased in property disinvestment
Energy Mgt System and Office Rationalisation APS - Asset Mgt 551 551 0 551 254 551 0 0 0 Costs associated with Office closures and new energy mgt system
Additional School Cleaning and Building Cleaning APS - Building Cleaning 431 431 0 431 213 431 0 0 0 Additional Cleaning requirements in schools until June 2022 and removal of previous cleaning saing
Free school meal funds c/f for laptops preordered and not delivered APS - Catering 109 109 0 109 109 109 0 0 0 Laptops
Pitches APS - Com Fac 70 70 0 70 0 70 0 0 0 Pitch Maintenance Costs
Enterprise Contract APS - Ent Contract 1,686 1,000 0 1,000 248 1,000 0 0 366 Ongoing set up cost for the Enterprise Contract
Road improvements EA - Roads 133 133 0 133 86 133 0 0 0 Targeted Roads Immprovement Exp
Winter Reserve EA - Roads 1,500 1,500 0 1,500 0 1,500 0 0 0 Contingency for significant winter event
Country Parks (Lighitng, rangers, events) EA - Visitors 429 316 0 316 0 316 0 0 0 Countrypark Exp - Park Rangers, Lighting, loss of event income
Cemeteries EA - Visitors 140 140 0 140 90 140 0 0 0 Reduction in Cemetery Income target / increased cleaning costs.
Service Developments - Bothy H&S / Ashdie Back exploratory works EA - Visitors 350 350 0 350 0 350 0 0 0 Health & Safety Repairs / Survey of requirements for Ashdie back exp
HEEPS HPP 591 300 0 300 0 300 0 0 0 Energy Efficiency Schemes - contributions to current programme
Additional Education Recovery - Ventillation HPP 415 415 0 415 476 415 0 0 0 School ventilation programme
Rapid rehousing HS 1,159 500 0 500 42 500 0 0 0 Rapid Rehousing programme to tackle homelessness
Tenant Hardship Rent Grant fund (LACER) HS 363 363 0 363 364 363 0 0 0 Sco Govt. Grant to assist rent arrears
Anti Social Behaviour Task Force HS 121 121 0 121 77 121 0 0 0 Staff costs
City Deal - Delburn Street / Manse Road P&R - city deal 105 105 0 105 0 105 0 0 0 Temporary Property costs as a result of capital programme
Business recovery/growth P&R - Enterprise 4,993 4,094 0 4,094 0 3,994 0 0 100 Costs to support business recovery
Local Development Plan P&R - P&P 290 150 0 150 0 150 0 0 0 Set up costs to produce LDP
LUF Ravenscraig P&R Growth 400 400 0 400 0 400 0 0 0 Costs assoicated with LUF bid
Housing Grants to owner occupiers RSWS - BE 93 93 0 93 0 93 0 0 0 Funding for Private Sector Grants
Fleet - Grant for Lease Vehciles RSWS - Fleet 371 253 0 253 0 253 0 0 0 Grant funding for electric vehicles
Bellshill Depot Eco hub - Due Diligence RSWS - Fleet 200 200 0 200 0 200 0 0 0 Set up costs for Eco Hub
Protective Services - EHO/Pest Control/Food Safety/Env Health RSWS - PS 1,213 1,213 0 1,213 0 1,213 0 0 0 Employee costs / reduction in Pest Control income target / Environmental Health exp
Waste Tonnage RSWS - Waste 622 622 0 622 0 622 0 0 0 Increased tonnage costs
Digital Savings E&C 677 677 0 677 0 677 0 0 0 Digital Savings
Total 17,536 14,630 0 14,630 2,071 14,530 0 0 466
Section Commentary regards usageTotal
Earmarked
Reserve
£000
Initial 22/23
Allocation
Adjustments
in year
22/23
Approved
Reserve
Total
Spend
To Date
Projected
Outturn, 2022/23
Reserves
Required For
2023/24
Onwards
Reserves
No Longer
Required
Enterprise & Communities
Status of Earmarked Resources
1st April 2022 - 16th September 2022
Period 06
2022/23

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Appendix 5
Reference / Descriptions Reason for Savings Gap
£000 £000 £000 £000 £000
Savings 2021/2022 and 2022/23
EC10 Asset Management
Rationalisation/Office Dis-
investment.
0.800 0.327 0.473 Timing of Office closures Temporary rates savings and
other property repairs /
Vacncies
0.473 0
EC13 Efficiencies in school cleaning
service
0.200 0 0.200 Enhanced cleaning required Ear marked reserve in 22/23 0.200 0
EC37 Review of staffing within
Business Intelligence and
Strategic Resourcing team
0.076 0 0.076 Delays in staffing changes Mgt action across the division 0.076
Totals 1.076 0.327 0.749 0.749
Description Value
Revised
Savings Gap
Any additional information
Enterprise and Communities
Revenue Budget Monitoring Report - Challenging Savings
1st April 2022 - 16th September 2022 (PERIOD 06)
APPROVED SAVINGS
Target Value Value
Deliverabl
Saving Gap
REPLACEMENT SAVING / FUNDING

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