2. HRA Financial Report - Report
Renfrewshire Council · 11 March 2025
Back to Communities and Housing Policy Board — 11 March 2025 and its agenda
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___________________________________________________________________ To: Communities and Housing Policy Board On: 11 March 2025 ___________________________________________________________________ Report by: Director of Finance and Resources & Director of Environment, Housing and Infrastructure ___________________________________________________________________ Heading: General Services Revenue, Housing Revenue Account (HRA) and Capital Budget Monitoring as at 7 January 2025 ___________________________________________________________________ 1. Summary 1.1 At the close of reporting Period 10 on 7 January 2025, the projected revenue outturn at 31 March 2025 for those services reporting to the Communities and Housing Policy Board, including the Housing Revenue Account, is break-even against the revised budget for the year in General Services and a break-even position in the HRA. 1.2 The projected capital outturn at 31 March 2025 for projects reporting to the Communities and Housing Policy Board, is a break-even position. 1.3 This is summarised over the relevant services in the table below and further analysis is provided in the report and appendices. Revised Annual Budget £000 Projected Outturn £000 Budget Variance (Adv)/Fav £000 Budget Variance % Revenue Housing Revenue Account (HRA) 0 0 0 0.0% Housing – General Services (Non-HRA) 4,987 4,987 0 0.0% Communities and Public Protection 6,106 6,106 0 0.0% Criminal Justice 4,198 4,198 0 0.0% Total 15,291 15,291 0 0.0%
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Revised Annual Budget £000 Projected Outturn £000 Budget Variance (Adv)/Fav £000 Budget Variance % Capital Housing Revenue Account (HRA) 31,380 31,380 0 0.0% Other Housing PSHG 1,186 1,186 0 0.0% Total 32,566 32,566 0 0.0% 2. Recommendations 2.1 It is recommended that the Board note the projected Revenue outturn break- even position. 2.2 It is recommended that the Board note the projected Capital outturn break-even position. 2.3 It is recommended that the Board agree to homologate the budget adjustments detailed at section 7.2. 3. Revenue Budget Projection – break-even by 31 March 2025 3.1 The tables in Appendix 1 present the projected year-end position for all services reporting to this board, by both subjective analysis (what the budget is spent on) and objective analysis (which division is spending the budget). Significant variances affecting the projected position are analysed further below. 3.2 It should be noted that the projected outturn position reported here is based on the latest information available, which is subject to change during the financial year. Budget holders are obliged to seek mitigating action to minimise significant budget variances. 4. Objective Analysis – Significant Variances 4.1 Housing Revenue Account (HRA) - break-even by 31 March 2025 The HRA is projected to break-even overall in 2024/25. Demand for repairs to HRA premises, including void properties, is still currently expected to be managed within the revised budget levels. 4.2 Housing – General Services (Non-HRA) – break-even by 31 March 2025 The projected outturn for Homelessness within Housing – General Services (Non-HRA), continues to be a challenge over the remainder of the financial year. Demand on services is currently being managed within existing resources, including additional staffing, being supported through migration and asylum funding streams allocated to the Council by the UK and Scottish Government.
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The potential increase in homeless presentations linked to the asylum population in Renfrewshire and more widely across the West of Scotland, continues to create additional, potentially long-term, financial pressures for Council services. Projections of these pressures will continue to be reviewed and reported to future Communities and Housing Policy Boards as required. 4.3 Communities and Public Protection - break-even by 31 March 2025 Employee costs are projected to underspend due to vacancies within the service, this area is under review by management. The underspend has been allocated against spend across other budget lines and overall, the service is projected to break-even at year end. 5. Subjective Analysis – Significant Variances GENERAL SERVICES (excluding HRA) 5.1 Employee costs - £0.234m underspend by 31 March 2025 This is a combination of underspends across services, for example, in Public Protection underspends are due to vacancies, which are currently under review. Underspends in Community Learning & Development and Homelessness are offset by minor overspends across their service areas. 5.2 Transport Related – (£0.058m) overspend by 31 March 2025 Overspends in Community Learning & Development, Criminal Justice and Homelessness are offset by minor underspends across their service areas. 5.3 Supplies and Services - (£0.066m) overspend by 31 March 2025 This includes (£0.070m) for prior year water sampling costs within the Public Protection Service, funded by underspends in employee costs as noted above. Furniture costs within the Homelessness Service are projected to overspend, which is consistent with the overall demand on Homelessness services. 5.4 Transfer Payments – (£0.170m) overspend by 31 March 2025 Underspends in revenue costs within the Private Sector Housing Grant programme has led to a reduction in the projected drawdown from Reserves. Overspends in Public Protection are offset by underspends within employee costs, as reported above. HOUSING REVENUE ACCOUNT (HRA) 5.5 Premises Related costs – (£0.121m) overspend by 31 March 2025 The level of demand for Repairs and Maintenance of HRA Properties remains high, especially within Void properties.
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In-year temporary budget transfers from areas of underspend have been realigned to manage this within the overall service. Additional focus will continue on this area to understand ongoing demand levels. All premises related costs, including utilities and estate management, are subject to fluctuations, and will continue to be closely monitored throughout the year. 5.6 Transfer Payments – £0.073m underspend by 31 March 2025 The implementation of the Single Voids Team has overseen an improvement in both operational and management void rent loss, and this underspend is reflective of the progress achieved in this area. 6. Revenue Budget Virements 6.1. Under the Council’s financial regulations, Directors, and their nominated officers, in consultation with the Director of Finance and Resources, have certain delegated authority to transfer sums between subjective budget headings within a service division to enable budget management throughout the financial year. This is known as ‘budget virement’. 6.2. Transfers between divisions of the same service / department in excess of £100,000, and transfers between services / departments must be authorised by the respective service Director and the Director of Finance and Resources for submission to the relevant policy board for approval. No such virements are proposed this period. 7. Capital Budget Projection – break-even position by 31 March 2025 7.1 The Non-Housing Capital Investment Programme 2024/25 to 2028/29 was approved by the Council on 29 February 2024. For Communities and Housing Service the revised capital spend for 2024/25 is £32.566m. 7.2 The in-year Capital budget is forecast to break-even by 31 March 2025, following a budget adjustment between years that has taken place to reflect revised programming of some capital projects. Details of the £0.518m adjustment is as follows: Capital Budget Adjustments Project Amount (£m) Reason Non Property Expenditure 0.518 This reflects the most recent profiling of the Housing ICT Systems Replacement Project within the overall capital programme. HRA reserves have been earmarked to fund this expenditure. Total 0.518
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Implications of the Report 1. Financial The projected budget outturn position for the Communities and Housing Revenue budget is break-even at 31 March 2025. Income and expenditure will continue to be monitored closely for the rest of the financial year and as far as possible, steps will be taken to mitigate any overspend. The projected outturn position for Communities and Housing Services Capital budget is break-even, after the adjustments outlined in section 7. 2. HR & Organisational Development While staffing budgets form a significant proportion of the Council’s revenue budgets, there are no direct implications arising from the recommendations in this report. 3. Community/Council Planning Community Plan Our Renfrewshire is thriving The Council’s revenue and capital spend ensures that its facilities are fit for purpose and safe for the community, to maximise accessibility. Our Renfrewshire is well Our Renfrewshire is fair Our Renfrewshire is safe Council Plan Reshaping our place, our economy and our future The Council’s revenue and capital spend ensures that its facilities are fit for purpose and safe for the community, to maximise accessibility. Building strong, safe and resilient communities Tackling inequality, ensuring opportunities for all Creating a sustainable Renfrewshire for all to enjoy Ongoing revenue and capital budget monitoring is a tool to enable good financial management so that the Council has resources now and in the future for continued service delivery. Working together to improve outcomes 4. Legal There are no direct implications arising from the recommendations in this report.
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5. Property/Assets The capital expenditure noted in this report will result in lifecycle maintenance improvements to existing properties and replacement of ICT assets and infrastructure. 6. Information Technology ICT assets and revenue costs are included within these reported budgets, and the costs associated with the replacement of the Housing Management system will have both an ongoing revenue and capital budget impact. 7. Equality & Human Rights While new areas of spend may impact on particular groups, any such impact would be assessed prior to the spend being incurred, therefore there are no direct implications arising from the recommendations in this report. 8. Health & Safety The capital expenditure noted in this report will result in lifecycle maintenance improvements to existing properties and replacement of ICT assets, which may in some cases rectify health and safety issues. 9. Procurement While Procurement is an important consideration prior to the Council incurring any revenue or capital spend, there are no direct implications arising from the recommendations in this report. 10. Risk The potential financial risk that the Council will overspend its approved revenue budgets for the year is managed at a Council-wide level by the Chief Executive and Directors. 11. Privacy Impact There are no direct implications arising from the recommendations in this report. 12. Cosla Policy Position N/a. 13. Children’s Rights There are no direct implications arising from the recommendations in this report.
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14. Climate Change The Council aims to reduce its carbon and other emissions to net zero by 2030, however there are no direct implications arising from the recommendations in this report. List of Background Papers Housing Revenue Account Budget & Rent Levels 2024/25 and Housing Capital Investment Plan 2024/25 to 2028/29, Council 29 February 2024. Non-housing Capital Investment Programme, prudential Framework and Treasury Management Strategy, and Capital Strategy 2024/25 – 2028/29, Council 29 February 2024. Author: John Kilpatrick, Finance Business Partner; Geoff Borland, Finance Manager.
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RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2024/25 1 April 2024 to 7 January 2025 POLICY BOARD: COMMUNITIES AND HOUSING ‐ All SERVICES Objective Summary Annual Budget at Period 6 Budget Adjustments Revised Annual Budget at Period 8 Projected Outturn Budget Variance (Adverse) or Favourable Previous Projected Outturn Variance Movement £000 £000 £000 £000 £000 % £000 £000 Housing Revenue Account (HRA) 0 0 0 0 0 0.0% 0 0 Housing ‐ General Services (Non‐HRA) 4,904 83 4,987 4,987 0 0.0% 0 0 Communities and Public Protection (including Regulatory Services) 5,882 224 6,106 6,106 0 0.0% 0 0 Criminal Justice 4,092 106 4,198 4,198 0 0.0% 0 0 NET EXPENDITURE 14,878 413 15,291 15,291 0 0.0% 0 0
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RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2024/25 1 April 2024 to 7 January 2025 POLICY BOARD: COMMUNITIES AND HOUSING ‐ GENERAL SERVICES (excluding HRA) Subjective Summary Annual Budget at Period 8 Budget Adjustments Revised Annual Budget at Period 10 Projected Outturn Budget Variance (Adverse) or Favourable Previous Projected Outturn Variance Movement £000 £000 £000 £000 £000 % £000 £000 Employees 12,561 406 12,968 12,734 234 1.8% 334 (100) Premises Related 2,398 4 2,402 2,413 (11) (0.4%) (21) 11 Transport Related 197 0 197 255 (58) (29.4%) (50) (8) Supplies and Services 6,093 0 6,093 6,159 (66) (1.1%) (118) 53 Third Party Payments 112 239 351 343 8 2.3% (43) 51 Transfer Payments 2,799 (236) 2,563 2,733 (170) (6.6%) (113) (57) Support Services 53 0 53 19 34 64.4% 2 33 Depreciation and Impairment Losses (23) 0 (23) (11) (12) (52.2%) (12) 0 GROSS EXPENDITURE 24,191 414 24,605 24,645 (40) (0.2%) (22) (18) Income (9,313) (1) (9,314) (9,354) 40 0.4% 22 18 NET EXPENDITURE 14,878 413 15,291 15,291 (0) 0.0% 0 (0)
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RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2024/25 1 April 2024 to 7 January 2025 POLICY BOARD: COMMUNITIES, HOUSING AND PLANNING SERVICES ‐ Housing Revenue Account (HRA) Only Subjective Summary Annual Budget at Period 8 Budget Adjustments Revised Annual Budget at Period 10 Projected Outturn Budget Variance (Adverse) or Favourable Previous Projected Outturn Variance Movement £000 £000 £000 £000 £000 % £000 £000 Employees 11,293 0 11,293 11,332 (39) (0.3%) 9 (48) Premises Related 25,110 200 25,310 25,431 (121) (0.5%) (26) (95) Transport Related 53 0 53 63 (10) (18.9%) (10) 0 Supplies and Services 768 0 768 766 2 0.3% (13) 15 Third Party Payments 0 0 0 0 0.0% 0 0 Transfer Payments 5,003 (200) 4,803 4,730 73 1.5% 6 67 Support Services 3,322 0 3,322 3,277 45 1.4% 12 33 Depreciation and Impairment Losses 18,427 0 18,427 18,427 0 0.0% 0 0 GROSS EXPENDITURE 63,976 0 63,976 64,026 (50) (0.1%) (22) (28) Income (63,976) 0 (63,976) (64,026) 50 0.1% 22 28 NET EXPENDITURE 0 0 0 0 0 0.0% 0 0
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Prior Years Approved Budget Revised Projected Total Approved Projected Expenditure Budget Adjustments Budget Outturn Budget Outurn to 31/03/2024 2024‐25 since previous 2024‐25 2024‐25 to 31‐Mar‐29 to 31‐Mar‐29 Project Title Board report £000 £000 £000 £000 £000 £000 £000 HOUSING(HRA) Improvements To Existing Properties 0 16,538 0 16,538 16,538 0 0% 111,757 111,757 0 0% Regeneration 10,743 7,682 0 7,682 7,682 0 0% 7,587 7,587 0 0% Other Assets 0 3,265 0 3,265 3,265 0 0% 4,550 4,550 0 0% Non Property Expenditure 0 900 518 1,418 1,418 0 0% 10,860 10,860 0 0% Council House New Build 42,665 627 0 627 627 0 0% 74,690 74,690 0 0% Professional Fees 0 1,850 0 1,850 1,850 0 0% 9,700 9,700 0 0% Total Housing (HRA) Programme 53,408 30,862 518 31,380 31,380 0 0% 219,144 219,144 0 0% HOUSING(PSHG) Private Sector Housing Grant Programme 0 1,186 0 1,186 1,186 0 0% 2,926 2,926 0 0% Total Housing (PSHG) Programme 0 1,186 0 1,186 1,186 0 0% 2,926 2,926 0 0% TOTAL COMMUNITIES, HOUSING & PLANNING BOARD 53,408 32,048 518 32,566 32,566 0 0% 222,070 222,070 0 0% *Rolling programmes have a prior year year expenditure of £0 as the expenditure is not directly linked from one year to the next as a singular project. Budget Variance (Adverse) or Favourable Budget Variance (Adverse) or Favourable CAPITAL INVESTMENT STRATEGY 1st April to 7th January 2025 POLICY BOARD: COMMUNITES & HOUSING Current Year 2024‐25 Full Programme ‐ All years