CAHS Policy Board Period 10 2023-24 Board
Renfrewshire Council · 12 March 2024
Back to Communities and Housing Policy Board — 12 March 2024 and its agenda
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0 To: Communities and Housing Policy Board On: 12 March 2024 Report by: Director of Finance and Resources Heading: General Services Revenue, Housing Revenue Account (HRA) and Capital Budget Monitoring as at 5 January 2024 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 an overspend of £0.021m 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 2024 for projects reported to the Communities and Housing Policy Board is a break-even position against the revised budget of £21.451m 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 (Non-HRA) 4,667 4,688 (21) (0.4%) Communities and Public Protection 5,927 5,927 0 0% Criminal Justice 3,843 3,843 0 0% Board Total – Revenue 14,437 14,458 (21) (0.1%)
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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 1,073 1,073 0 0% Board Total – Capital 21,451 21,451 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 overspend of £0.021m 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 within Housing – General Services Non-HRA, 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 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. 3.5. The main reasons 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, a budget adjustment totalling (£0.016m) relating to Non-Domestic Rates. 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. 5.2. The Capital Monitoring report at Appendix 2 indicates a revised budget in 2023/24 for Communities and Housing Services of £21.451m. 6. Capital Budget Adjustments 6.1. Since the last report, budget changes totalling £0.044m have arisen which reflect the following PSHG capital projects: Budget carried forward from 2023/24 into 2024/25 of (£0.044m) o Owners In Council House Schemes – (£0.040m) o Fees/Consultancy/Title Clearance – (£0.004m) ___________________________________________________________________
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3 Implications of this report 1. Financial – The projected budget outturn position for Communities and Housing Services Revenue budget is projected overspend of £0.021m. 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 The Capital Plan Investment programme includes Capital projects that 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 The Capital Plan Investment programme includes investment in Council assets and facilities to ensure they remain safe and accessible in line with statutory obligations.
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4 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. 11. Privacy Impact None directly arising from this report. 12. 13. Cosla Policy Position N/a. Climate Risk Investment in Council assets improves energy efficiency, reducing the Council’s carbon footprint and helping it achieve its Net Zero by 2030 target. __________________________________________________________________ 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 reduced loan charges and additional interest received on balances. Overall, the HRA is therefore still projected to break even at year-end. Housing - General Services (Non-HRA) There is a continuing increased demand for homelessness accommodation, impacting on rental costs, Council Tax and furniture for temporary accommodation units. The forecasted overspends are expected to be partially offset by additional rental income received in relation to these units. As previously reported, 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. This increasing demand on services is 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. Projections will be monitored and revised as the situation continues to develop. Communities and Public Protection Employee costs are projected to underspend which is due to vacancies within the service, part of this underspend has been allocated against spend across other budget lines and overall, the service is projected to break-even at year end. Criminal Justice No significant projected year end variances to report. Objective Summary Annual Budget at Period 8 Budget Adjustments Revised Annual Budget at Period 10 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 (15) 4,667 4,688 (21) (0.4%) 0 (21) Communities and Public Protection (including Regulatory Services) 5,926 1 5,927 5,927 0 0.0% 0 0 Criminal Justice 3,845 (2) 3,843 3,843 0 0.0% 0 0 NET EXPENDITURE 14,453 (16) 14,437 14,458 (21) (0.1%) 0 (21) POLICY BOARD : COMMUNITIES AND HOUSING - All SERVICES RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2023/24 1 April 2023 to 5 January 2024 Budget Variance (Adverse) or Favourable
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Appendix 1 Subjective Summary Annual Budget at Period 8 Budget Adjustments Revised Annual Budget at Period 10 Projected Outturn Previous Projected Outturn Variance Movement £000 £000 £000 £000 £000 % £000 £000 Employees 12,324 (1) 12,323 12,153 170 1.4% 198 (28) Premises Related 1,945 (16) 1,930 2,388 (458) (23.7%) (236) (222) Transport Related 171 0 171 314 (143) (83.6%) (530) 387 Supplies and Services 3,354 0 3,354 3,861 (507) (15.1%) 143 (650) Third Party Payments 87 0 87 88 (1) (1.1%) (20) 19 Transfer Payments 2,382 (1) 2,381 2,879 (498) (20.9%) (284) (214) Support Services 54 0 54 20 34 63.0% 26 8 Depreciation and Impairment Losses (23) 0 (23) (18) (5) (21.7%) (5) 0 GROSS EXPENDITURE 20,294 (18) 20,276 21,684 (1,408) (6.9%) (708) (700) Income (5,841) 2 (5,839) (7,226) 1,387 23.8% 708 679 NET EXPENDITURE 14,453 (16) 14,437 14,458 (21) (0.1%) 0 (21) 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 5 January 2024
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Appendix 2 Subjective Summary Annual Budget at Period 8 Budget Adjustments Revised Annual Budget at Period 10 Projected Outturn Previous Projected Outturn Variance Movement £000 £000 £000 £000 £000 % £000 £000 Employees 11,098 0 11,098 10,709 389 3.5% 226 163 Premises Related 20,288 0 20,288 23,057 (2,769) (13.6%) (2,579) (190) Transport Related 103 0 103 52 51 49.5% 52 (1) Supplies and Services 733 0 733 684 49 6.7% (10) 59 Third Party Payments 49 0 49 49 0 0.0% 0 0 Transfer Payments 4,399 0 4,399 5,044 (645) (14.7%) (793) 148 Support Services 2,492 0 2,492 2,455 37 1.5% 37 0 Depreciation and Impairment Losses 19,089 0 19,089 18,711 378 2.0% 0 378 GROSS EXPENDITURE 58,251 0 58,251 60,761 (2,510) (4.3%) (3,067) 557 Income (58,251) 0 (58,251) (60,761) 2,510 4.3% 3,067 (557) 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 5 January 2024 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 P8 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 5,414 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 46,651 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 (44) 1,073 1,073 0 0% 1,117 1,117 0 0% Total Housing(PSHG) Programme 0 1,117 (44) 1,073 1,073 0 0% 1,117 1,117 0 0% TOTAL COMMUNITIES, HOUSING & PLANNING BOARD 46,651 21,495 (44) 21,451 21,451 0 0% 319,898 319,898 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 5th January 2023 POLICY BOARD: COMMUNITES & HOUSING Current Year 2023-24 Full Programme - All years