CAHS Policy Board Period 08 2023-24 Board
Renfrewshire Council · 16 January 2024
Back to Communities and Housing Policy Board — 16 January 2024 and its agenda
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0 To: Communities and Housing Policy Board On: 16 January 2024 Report by: Director of Finance and Resources Heading: General Services Revenue, Housing Revenue Account (HRA) and Capital Budget Monitoring as at 10 November 2023 1. Summary of Financial Position 1.1. The projected outturn at 31 March 2024 for all services reporting to the Communities and Housing Policy Board, including the Housing Revenue Account, is a break-even position against the revised budget for the year in both General Services activities and in the HRA. 1.2. The projected capital outturn at 31 March 2024 for projects reported to the Communities and Housing Policy Board is a break-even position against the revised budget of £21.495m for the year. 1.3. This is summarised over the relevant services in the table below and further analysis is provided in the appendices. Table 1: Revenue Division / Department Revised Annual Budget £000 Projected Outturn £000 Budget Variance £000 Budget Variance % Housing Revenue Account (HRA) 0 0 0 0% Housing – General Services (Not HRA) 4,682 4,682 0 0% Communities and Public Protection 5,926 5,926 0 0% Criminal Justice 3,845 3,845 0 0% Board Total – Revenue 14,453 14,453 0 0%
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1 Table 2: Capital Division / Department Revised Annual Budget £000 Projected Outturn £000 Budget Variance £000 Budget Variance % Housing Revenue Account (HRA) 20,378 20,378 0 0% Other Housing PSHG 1,117 1,117 0 0% Board Total – Capital 21,495 21,495 0 0% 2. Recommendations Members are requested to: 2.1. Note the projected Revenue outturn position detailed in Table 1 above 2.2. Note the projected Capital outturn position detailed in Table 2 above; and 2.3. Approve the budget adjustments detailed at section 4. 3. Revenue 3.1. The Revenue Budget Monitoring Statement at Appendix 1 identifies a projected break-even position for all services reporting to this Policy Board. Detailed division service reports can also be found here, along with an explanation of each significant projected variance. 3.2. The projected outturn is based on information currently available, and assumptions made by service budget holders. Projections are subject to continuous review, and any changes will be detailed in future reports to the Board. 3.3. The projected outturn for Homelessness continues to be a risk over the remainder of the financial year, with increasing demand on services being managed within existing resources at present, including some additional staffing being supported through migration and asylum funding streams allocated to the Council by the UK and Scottish Government. 3.4. The significant potential increase in homeless presentations linked to asylum population in Renfrewshire and more widely across the West of Scotland, is anticipated to create additional financial pressures for Council services. Projections of these pressures will continue to be reviewed and reported to future Communities and Housing Policy Boards. 3.5. The main reason for the projected outturn positions are indicated below the Appendix tables, showing both the subjective analysis (what the budget is spent on) and the objective analysis (which division is spending the budget).
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2 4. Revenue Budget Adjustments 4.1. Members are requested to note, from Appendix 1, budget adjustments totalling £0.534m have been processed since the budget was approved in March 2023. The most significant adjustment being: (£0.121m) – Transfer of Public Protection Directorate costs to Environment, Housing & Infrastructure. £0.655m – Additional Criminal Justice funding from the Scottish Government outwith the specific grant. 5. Communities and Housing Services Capital 5.1. The Capital Investment Programme 2023/24 to 2027/28 was approved by the Council on 2 March 2023. For Communities and Housing Services the approved capital spend for 2023/24 was £30.795m. 6. Capital Budget Adjustments 6.1. As shown in Appendix 2, there have been no budget changes within HRA capital and PSHG capital since the last report on 15 September 2023. ___________________________________________________________________
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3 Implications of this report 1. Financial – The projected budget outturn position for Communities and Housing Services Revenue budget is a break-even position. Income and expenditure in all services within the department will continue to be monitored closely for the rest of the financial year and, where necessary, steps will be taken to mitigate any significant overspend. The projected outturn position for Communities and Housing Services’ Capital budget is break-even. The Capital programme will continue to be monitored closely for the rest of the financial year and, where necessary, steps will be taken to mitigate any significant overspend. Any changes to current projections in either Revenue or Capital budgets will be reported to the Board as early as possible, along with an explanation for the movement. 2. HR and Organisational Development None directly arising from this report. 3. Community/Council Planning None directly arising from this report. 4. Legal None directly arising from this report. 5. Property/Assets Capital projects will result in new build Council housing stock and improvements to existing stock. 6. Information Technology None directly arising from this report. 7. Equality and Human Rights None directly arising from this report. 8. Health and Safety None directly arising from this report. 9. Procurement None directly arising from this report. 10. Risk The potential risk that the Council will overspend its approved budget for the year will be managed at a Council-wide level by the Chief Executive and Directors.
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4 11. Privacy Impact None directly arising from this report. 12. 13. Cosla Policy Position N/a. Climate Risk None directly arising from this report. __________________________________________________________________ List of Background Papers Housing Revenue Account Budget & Rent Levels 2023/24 and Housing Capital Investment Plan 2023/24 to 2027/28, Council, 2 March 2023; Non-housing Capital Investment Programme, Prudential Framework and Treasury Management Strategy, and Capital Strategy 2023/24 – 2027/28, Council, 2 March 2023. ___________________________________________________________________ Authors: John Kilpatrick, Finance Business Partner Linsey Mcgregor, Capital Accountant
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Appendix 1 Objective Heading Key Reasons for Projected Variance Housing Revenue Account (HRA) A projected underspend in employee costs is due to the timing of recruitment of vacancies within the service. Property costs are projected to significantly overspend, reflecting ongoing demands for repair and maintenance provision, particularly in void properties. Transfer payments continue to forecast an overspend, owing to the impact of repairs pressures on void rent loss, as well as additional Council Tax costs for these properties. These overspends are expected to be offset by additional interest income due to higher than budgeted interest rates. Overall, the HRA is therefore still projected to break-even at year-end. Housing - General Services (Not HRA) There is a continuing increased demand for homelessness accommodation, impacting on rental costs, Council Tax and furniture for temporary accommodation units. The forecast overspends are expected to be offset by additional rental income received in relation to these units. As reported to the recent Leadership Board, there are increasing pressures in relation to migration and asylum provision, particularly related to UK Home Office decisions being streamlined to tackle the volume of asylum seekers nationally. The significant potential increase in homeless presentations linked to the asylum population in Renfrewshire and more widely across the West of Scotland, is anticipated to create additional financial pressures for Council services. Projections are currently being developed and will be reported as they become available. Communities and Public Protection No significant projected year end variances to report. Criminal Justice No significant projected year end variances to report. Objective Summary Annual Budget at Period 6 Budget Adjustments Revised Annual Budget at Period 8 Projected Outturn Previous Projected Outturn Variance Movement £000 £000 £000 £000 £000 % £000 Housing Revenue Account (HRA) 0 0 0 0 0 0.0% 0 0 Housing - General Services (Not HRA) 4,682 0 4,682 4,682 0 0.0% 0 0 Communities and Public Protection (including Regulatory Services) 6,047 (121) 5,926 5,926 0 0.0% (5) 5 Criminal Justice 3,190 655 3,845 3,845 0 0.0% 0 (0) NET EXPENDITURE 13,919 534 14,453 14,453 0 0.0% (5) 5 POLICY BOARD : COMMUNITIES AND HOUSING - All SERVICES RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2023/24 1 April 2023 to 10 November 2023 Budget Variance (Adverse) or Favourable
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Appendix 1 Subjective Summary Annual Budget at Period 6 Budget Adjustments Revised Annual Budget at Period 8 Projected Outturn Previous Projected Outturn Variance Movement £000 £000 £000 £000 £000 % £000 £000 Employees 12,197 127 12,324 12,126 198 1.6% (52) 249 Premises Related 1,945 0 1,945 2,181 (236) (12.1%) (294) 58 Transport Related 171 0 171 701 (530) (309.9%) (35) (495) Supplies and Services 3,294 60 3,354 3,211 143 4.3% (155) 298 Third Party Payments 87 0 87 107 (20) (23.0%) (2) (18) Transfer Payments 2,442 (60) 2,382 2,666 (284) (11.9%) (68) (216) Support Services 54 0 54 28 26 48.8% 41 (15) Depreciation and Impairment Losses (23) 0 (23) (18) (5) (21.7%) (5) 0 GROSS EXPENDITURE 20,167 127 20,294 21,002 (708) (3.5%) (569) (139) Income (6,248) 407 (5,841) (6,549) 708 12.1% 564 144 NET EXPENDITURE 13,919 534 14,453 14,453 0 0.0% (5) 5 POLICY BOARD : COMMUNITIES AND HOUSING - GENERAL SERVICES (excluding HRA) Budget Variance (Adverse) or Favourable RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2023/24 1 April 2023 to 10 November 2023
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Appendix 2 Subjective Summary Annual Budget at Period 6 Budget Adjustments Revised Annual Budget at Period 8 Projected Outturn Previous Projected Outturn Variance Movement £000 £000 £000 £000 £000 % £000 £000 Employees 11,098 0 11,098 10,872 226 2.0% 259 (33) Premises Related 20,288 0 20,288 22,866 (2,578) (12.7%) (1,301) (1,277) Transport Related 103 0 103 51 52 50.5% 52 0 Supplies and Services 733 0 733 743 (10) (1.4%) 50 (60) Third Party Payments 49 0 49 49 0 0.0% 0 0 Transfer Payments 4,399 0 4,399 5,192 (793) (18.0%) (740) (53) Support Services 2,492 0 2,492 2,455 37 1.5% (8) 45 Depreciation and Impairment Losses 19,089 0 19,089 19,089 0 0.0% 0 0 GROSS EXPENDITURE 58,251 0 58,251 61,318 (3,067) (5.3%) (1,687) (1,380) Income (58,251) 0 (58,251) (61,318) 3,067 5.3% 1,687 1,380 NET EXPENDITURE 0 0 0 0 0 0.0% 0 0 POLICY BOARD : COMMUNITIES, HOUSING AND PLANNING SERVICES - Housing Revenue Account (HRA) Only 1 April 2023 to 10 November 2023 Budget Variance (Adverse) or Favourable RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2023/24
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Appendix 2 Prior Years Annual Budget Budget Revised Projected Expenditure at P6 Adjustments Budget Outturn Total Approved Projected to 31/03/2023 2023-24 2023-24 2023-24 Budget Outurn Project Title to 31-Mar-27 to 31-Mar-27 £000 £000 £000 £000 £000 £000 £000 HOUSING(HRA) Improvements To Existing Properties 0 10,250 0 10,250 10,250 0 0% 113,885 113,885 0 0% Regeneration 7,045 4,768 0 4,768 4,768 0 0% 106,953 106,953 0 0% Other Assets 0 1,815 0 1,815 1,815 0 0% 12,500 12,500 0 0% Non Property Expenditure 0 550 0 550 550 0 0% 1,550 1,550 0 0% Council House New Build 41,237 1,330 0 1,330 1,330 0 0% 74,478 74,478 0 0% Professional Fees 0 1,665 0 1,665 1,665 0 0% 9,415 9,415 0 0% Total Housing(HRA) Programme 48,282 20,378 0 20,378 20,378 0 0% 318,781 318,781 0 0% HOUSING(PSHG) Private Sector Housing Grant Programme 0 1,117 0 1,117 1,117 0 0% 1,117 1,117 0 0% Total Housing(PSHG) Programme 0 1,117 0 1,117 1,117 0 0% 1,117 1,117 0 0% TOTAL COMMUNITIES, HOUSING & PLANNING BOARD 48,282 21,495 0 21,495 21,495 0 0% 319,898 319,898 0 0% Budget Variance (Adverse) or Favourable Budget Variance (Adverse) or Favourable RENFREWSHIRE COUNCIL CAPITAL INVESTMENT STRATEGY 1st April to 10th November 2023 POLICY BOARD: COMMUNITES & HOUSING Current Year 2023-24 Full Programme - All years