1. General Services Revenue, Housing Revenue Account (HRA) and Capital Budget Monitoring as at 27 June 2025 - Report
Renfrewshire Council · 19 August 2025
Back to Communities and Housing Policy Board — 19 August 2025 and its agenda
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___________________________________________________________________ To: Communities and Housing Policy Board On: 19 August 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 27 June 2025 ___________________________________________________________________ 1. Summary 1.1 At the close of reporting Period 3 on 27 June 2025, the projected revenue outturn at 31 March 2026 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 2026 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) 4,653 4,653 0 0.0% Communities and Public Protection 4,711 4,711 0 0.0% Criminal Justice 3,477 3,477 0 0.0% Total 12,841 12,841 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) 52,836 52,836 0 0.0% Other Housing PSHG 833 833 0 0.0% Total 53,669 53,669 0 0.0% 2. Recommendations 2.1 It is recommended that the Board: i) notes the projected Revenue outturn break-even position. ii) notes the projected Capital outturn break-even position. iii) notes the budget adjustments detailed at sections 6.3 and 7.2. 3. Revenue Budget Projection – break-even by 31 March 2026 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 2026 The HRA is projected to break-even overall in 2025/26. 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 2026 The projected outturn for Homelessness within Housing – General Services (Non-HRA), continues to be a challenge in this financial year. Demand on services is currently being managed within existing resources, including additional dedicated staff, being supported through migration and asylum funding streams allocated to the Council by the UK and Scottish Governments.
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The increase in homeless applications during the current year in Renfrewshire continues to create additional, potentially longer-term, financial pressures for Council services. The service has had to increase the number of available temporary accommodation rooms, though the increased costs are currently being managed within the income recovered. 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 2026 A minor overspend on trainee costs will be offset by various minor underspends across the service. Overall, the service is projected to break even at year-end. 5. Subjective Analysis – Significant Variances GENERAL SERVICES (excluding HRA) 5.1 Premises Related – (£0.260m) overspend by 31 March 2026 The overspend is because of the continuing high demand for Homeless Services and the requirement for more properties than expected. However, this extra cost is managed within the overall budget by additional rental income recoveries. The number of people needing help from Homeless Services will continue to be closely monitored throughout the year. If the demand continues to remain high, the expenditure and income budgets will be adjusted accordingly. 5.2 Transfer Payments – (£0.133m) overspend by 31 March 2026 The projected overspend is mainly due to a likely increase in bad debt within the Homeless Service by the end of the year. This is partly because more properties are being used, as mentioned above. The cost of empty properties (known as voids) is also included in this budget and will continue to be carefully tracked throughout the year. 5.3 Income – £0.353m over-recovery by 31 March 2026 As more temporary accommodation properties are being used than originally forecast, the amount of income recovered is expected to go up. If this trend continues, the expenditure and income budgets will require to be updated during the year to reflect the changes in demand for properties as noted above.
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HOUSING REVENUE ACCOUNT (HRA) 5.4 Employees – £0.365m underspend by 31 March 2026 The projected underspend in Employee costs reflects the level of turnover, timing of recruitment and the level of vacancies across the service, in particular within the Housing Management Area. Additional costs associated with the Single Voids Team are being managed within the overall budget this year. This underspend is assisting with managing the pressures within the overall budget. This will continue to be closely monitored, and budget adjustments will be considered for the next report. 5.5 Premises Related costs – (£0.530m) overspend by 31 March 2026 The level of demand for Repairs and Maintenance of HRA Properties remains high, especially within Void properties. Additional focus continues on this area to analyse ongoing demand levels. All premises related costs, including utilities and estate management, are subject to demand fluctuations, and will continue to be closely monitored throughout the year. 5.6 Income – £0.130m over-recovery by 31 March 2026 Interest received on HRA Reserves has been above budget in recent years and is expected to over-recover again this year. While this is subject to many external factors, this will assist with managing the pressures within the overall budget. 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. 6.3. The Policy and Partnerships division of the Chief Executives Service is delivering the Connected Communities service redesign under the Transforming Renfrewshire programme. The division delivers services which report to both the Communities and Housing Policy Board and Leadership Board.
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For reporting purposes, the employee costs of the former Community Learning and Development (CLD) team have been consolidated into the Policy and Partnerships employee costs, which will continue to report to the Leadership Board with the remit of the CLD team and the Community Partnerships team continuing to report to this board, as per the CLD update reported to this board on 13 May 2025 and as part of the Reshaping Renfrewshire update reported to Leadership Board on 18 June 2025. The Board is therefore asked to note the following virement to reflect this realignment of budgets into the Policy and Partnership team. Revenue Budget Adjustments Objective Heading Subjective Heading Amount (£m) Reason Communities and Public Protection Employees (1.134) Transfer of employee costs budgets under the Connected Communities service restructure to Policy and Partnership team. Transfer Payments (0.009) (1.143) 7. Capital Budget Projection – break-even position by 31 March 2026 7.1 The Non-Housing Capital Investment Programme 2025/26 to 2029/30 was approved by the Council on 27 February 2025. For Communities and Housing Service the revised capital spend for 2025/26 is £53.669m. 7.2 The in-year Capital budget is forecast to break even by 31 March 2026, following a budget adjustment between years that has taken place to reflect revised programming of some capital projects. Details of the £8.417m adjustment are as follows: Capital Budget Adjustments Project Amount (£m) Reason Improvements to Existing Properties (4.100) Reprofiling to 2026/27 due to later than originally anticipated start dates for two projects. Regeneration (3.400) Reprofiling to 2026/27 to reflect revised start dates for refurbishments within the regeneration areas in particular works for Broomlands and Howard Street.
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Capital Budget Adjustments Project Amount (£m) Reason Council House New Build (1.000) Reprofiling to 2026/27 due to later than originally anticipated start dates no change to the overall construction cost. Private Sector Housing Grant 0.083 Budget adjustments between years has taken place, to reflect revised profiling mainly in relation to Disabled Adaptations. Total (8.417) Implications of the Report 1. Financial The projected budget outturn position for the Communities and Housing Revenue budget is break-even at 31 March 2026. 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
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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. 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.
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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. 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 2025/26 and Housing Capital Investment Plan 2025/26 to 2029/30, Council 27 February 2025. Non-housing Capital Investment Programme, Prudential Framework and Treasury Management Strategy, and Capital Strategy 2025/26 – 2029/30, Council 27 February 2025. Author: John Kilpatrick, Finance Business Partner; Geoff Borland, Finance Manager.
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RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2025/26 1 April 2025 to 27 June 2025 POLICY BOARD: COMMUNITIES AND HOUSING - All SERVICES Objective Summary Approved Annual Budget Budget Adjustments Revised Annual Budget at Period 3 Projected Outturn Budget Variance (Adverse) or Favourable £000 £000 £000 £000 £000 % Housing Revenue Account (HRA) 0 0 0 0 0 0.0% Housing - General Services (Not HRA) 4,606 47 4,653 4,653 0 0.0% Communities and Public Protection (including Regulatory Services) 5,861 (1,150) 4,711 4,711 0 0.0% Criminal Justice 3,405 72 3,477 3,477 0 0.0% NET EXPENDITURE 13,872 (1,031) 12,841 12,841 0 0.0%
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RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2025/26 1 April 2025 to 27 June 2025 POLICY BOARD: COMMUNITIES AND HOUSING - GENERAL SERVICES (excluding HRA) Subjective Summary Approved Annual Budget Budget Adjustments Revised Annual Budget at Period 3 Projected Outturn Budget Variance (Adverse) or Favourable £000 £000 £000 £000 £000 % Employees 10,992 414 11,406 11,385 21 0.2% Premises Related 2,482 88 2,570 2,830 (260) (10.1%) Transport Related 179 31 210 204 6 2.9% Supplies and Services 4,236 683 4,919 4,904 15 0.3% Third Party Payments 87 0 87 87 0 0.0% Transfer Payments 4,026 200 4,226 4,359 (133) (3.1%) Support Services 53 0 53 55 (2) (3.8%) Depreciation and Impairment Losses 52 0 52 52 0 0.0% GROSS EXPENDITURE 22,107 1,416 23,523 23,876 (353) (1.5%) Income (8,235) (2,447) (10,682) (11,035) 353 3.3% NET EXPENDITURE 13,872 (1,031) 12,841 12,841 0 0.0%
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RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2025/26 1 April 2025 to 27 June 2025 POLICY BOARD : COMMUNITIES, HOUSING AND PLANNING SERVICES - Housing Revenue Account (HRA) Only Subjective Summary Approved Annual Budget Budget Adjustments Revised Annual Budget at Period 3 Projected Outturn Budget Variance (Adverse) or Favourable £000 £000 £000 £000 £000 % Employees 12,279 (46) 12,233 11,868 365 3.0% Premises Related 24,143 127 24,270 24,800 (530) (2.2%) Transport Related 54 0 54 59 (5) (9.3%) Supplies and Services 944 25 969 955 14 1.4% Third Party Payments 0 0 0 0 0 0.0% Transfer Payments 6,719 20 6,739 6,719 20 0.3% Support Services 3,333 (46) 3,287 3,281 6 0.2% Depreciation and Impairment Losses 18,205 0 18,205 18,205 0 0.0% GROSS EXPENDITURE 65,677 80 65,757 65,887 (130) (0.2%) Income (65,677) (80) (65,757) (65,887) 130 0.2% NET EXPENDITURE 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 31/03/2025 2025-26 2025-26 2025-26 to 31-Mar-30 to 31-Mar-30 Project Title £000 £000 £000 £000 £000 £000 £000 HOUSING(HRA) Improvements To Existing Properties 0 27,777 (4,100) 23,677 23,677 0 0% 119,092 119,092 0 0% Regeneration 14,434 19,264 (3,400) 15,864 15,864 0 0% 128,128 128,128 0 0% Other Assets 0 3,779 0 3,779 3,779 0 0% 16,133 16,133 0 0% Non Property Expenditure 0 700 0 700 700 0 0% 700 700 0 0% Council House New Build 43,297 7,641 (1,000) 6,641 6,641 0 0% 75,001 75,001 0 0% Professional Fees 0 2,175 0 2,175 2,175 0 0% 11,109 11,109 0 0% Total Housing (HRA) Programme 57,731 61,336 (8,500) 52,836 52,836 0 0% 350,163 350,163 0 0% HOUSING(PSHG) Private Sector Housing Grant 0 750 83 833 833 0 0% 4,433 4,433 0 0% Total Housing (PSHG) Programme 0 750 83 833 833 0 0% 4,433 4,433 0 0% TOTAL COMMUNITIES, HOUSING & PLANNING BOARD 57,731 62,086 (8,417) 53,669 53,669 0 0% 354,596 354,596 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 RENFREWSHIRE COUNCIL CAPITAL INVESTMENT STRATEGY 1st April to 27th June 2025 POLICY BOARD: COMMUNITES & HOUSING Current Year 2025-26 Full Programme - All years