2024-25 P03 Eco and Regen PB Budget Monitoring Report
Renfrewshire Council · 27 August 2024
Back to Economy and Regeneration Policy Board — 27 August 2024 and its agenda
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___________________________________________________________________ To: Economy and Regeneration Policy Board On: 27 August 2024 ___________________________________________________________________ Report by: Chief Executive and Director of Finance and Resources ___________________________________________________________________ Heading: Revenue and Capital Budget Monitoring 2024/25 at 21 June 2024 ___________________________________________________________________ 1. Summary 1.1 At the close of reporting Period 3 on 21 June 2024, the projected revenue outturn at 31 March 2025 for those services reporting to the Economy and Regeneration Policy Board was an underspend position of £0.066m (3.0%) against the revised budget for the year. 1.2 The projected capital outturn at 31 March 2025 for projects reporting to the Economy and Regeneration Policy Board is a break-even position. 1.3 This is summarised 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 Economy and Development 2,228 2,162 66 3.0% Capital Economy and Development 22,862 22,862 0 0.0% 2. Recommendations 2.1 Members are requested to: a) Note the projected Revenue outturn underspend position of £0.066m; b) Note the projected Capital outturn break-even position;
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c) Agree to homologate the budget adjustments detailed at section 6.2; d) Note the budget adjustments detailed at section 6.3; and e) Approve the budget adjustment detailed at section 6.4. 3. Revenue Budget Projection – underspend of £0.066m 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. The impact of any change on this projection will be updated at each board cycle until the close of reporting Period 10. Budget holders are obliged to seek mitigating action to minimise significant budget variances. 4. Objective Analysis – Significant Variances 4.1 Regeneration - £0.066m underspend This forecast position reflects the impact of vacancies within the team at the start of the financial year. 5. Subjective Analysis – Significant Variances 5.1 Employees - £0.065m underspend by 31 March 2025 This projected underspend represents vacancies in the Regeneration team at the start of the financial year. Recruitment to these posts is expected to complete over the course of the next quarter. 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/Chief Executive and the Director of
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Finance and Resources for submission to the relevant policy board for approval. Since the budget was approved in February 2024, the Chief Executive now seeks homologation from the Board for the following affected virements: Revenue Budget Adjustments Service Amount (£m) Reason Economy and Development (0.001) Regeneration project budget reallocated to Environment, Housing & Infrastructure for delivery Economy and Development (0.750) Right for Renfrewshire savings realised 6.3. The following budget adjustment reflects changes to superannuation rates for employers and is therefore for noting only: Revenue Budget Adjustments Service Amount (£m) Reason Economy and Development (0.188) Contribution to reserves re reduction in employers’ superannuation 6.4. The Scottish Government issued an offer of grant to Renfrewshire Council of £2.182m in connection with the delivery of No One Left Behind employability support, which was accepted on 18 June 2024. The Board is therefore asked to approve the following virement to reflect the realignment of budgets required to deliver the programme, to be reflected in the next report: Revenue Budget Adjustments Objective Heading Subjective Heading Amount (£m) Reason Economy and Development Employee Costs 1.166 Temporary realignment of costs funded by external income streams. Project Costs* 1.016 Income (2.182) * Project costs can include supplies and services contracts and payments to external bodies 7. Capital Budget Projection – break-even position by 31 March 2025 7.1 The Capital Investment Programme 2024/25 to 2028/29 of £21.720m for Economy and Regeneration was approved by the Council on 29 February 2024. The revised capital spend for 2024/25 is £22.862m.
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7.2 The in-year Capital budget is forecast to break-even by 31 March 2025 after a number of budget adjustments between years have taken place, to reflect revised programming of some capital projects. Details of these adjustments, which amount to £1.142m, are as follows: Project Amount (£m) Budget brought forward into 2024/25 to reflect updated timing Paisley Art Centre Redevelopment 0.128 Paisley Town Hall Redevelopment (0.250) Paisley Learning & Cultural Hub 0.280 Paisley Museum (0.634) Paisley Junctions and Charging Hub 0.194 Public Realm 1.163 Sports Development – St James Playing Fields Redevelopment 3.075 Sports Development – Ferguslie Pavilion Upgrade 0.460 Sports Development – Hockey Pitch at On-X 0.600 Town Centre Capital Fund 0.035 Place Based Investment Fund 0.366 Town Centre Regeneration 0.009 Shared Prosperity Fund 0.028 RCGF PACE Theatre (0.210) Townscape Heritage CARS 2 0.223 Budget carried forward into 2025/26 Town Centre Regeneration (0.069) Public Realm (4.256) Total 1.142 Implications of the Report 1. Financial The projected budget outturn position for Finance, Resources and Customer Services’ Revenue budget is an underspend of £0.066 (3.0%) 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 Economy and Regeneration Capital budget is break-even, after the adjustments outlined at section 6.
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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. 5. Property/Assets The capital expenditure noted in this report will result in improvements to Culture and Heritage assets and delivery of strategic place-shaping and regeneration. 6. Information Technology There are no direct implications arising from the recommendations in this report. 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.
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8. Health & Safety There are no direct implications arising from the recommendations in this report. 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. 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. 14. Children’s Rights There are no direct implications arising from the recommendations in this report. List of Background Papers • Revenue Budget and Council Tax 2024/25, Council 29 February 2024 • The Capital Investment Programme 2023/24 to 2027/28, Council 29 February 2024 Author: Valerie Howie, Finance Business Partner; and Linsey McGregor, Senior Accountant (Capital)
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Appendix 1 RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2024/25 1 April 2024 to 21 June 2024 POLICY BOARD: ECONOMY AND REGENERATION 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 % Economy and Regeneration Management 160 (125) 35 35 0 0.0% Economic Development 1,947 (812) 1,135 1,135 0 0.0% Regeneration 1,066 (8) 1,058 992 66 6.2% NET EXPENDITURE 3,172 (944) 2,228 2,162 66 3.0% 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 2,586 (854) 1,732 1,666 66 3.8% Premises Related 22 0 22 21 1 4.5% Transport Related 3 0 3 4 (1) (33.3%) Supplies and Services 30 (7) 23 24 (1) (4.3%) Third Party Payments 0 0 0 0 0 0.0% Transfer Payments 842 (69) 773 772 1 0.1% Support Services 40 (15) 25 26 (1) (4.0%) Depreciation and Impairment Losses 0 0 0 0 0 0.0% GROSS EXPENDITURE 3,523 (945) 2,578 2,513 65 2.5% Income (351) 1 (350) (351) 1 0.3% NET EXPENDITURE 3,172 (944) 2,228 2,162 66 3.0%
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Appendix 2 Prior Years Approved Budget Revised Projected Expenditure Budget Adjustments Budget Outturn Total Approved Projected to 31/03/2024 2024-25 in 2024-25 2024-25 2023-24 Budget Outurn Project Title to 31-Mar-29 to 31-Mar-29 £000 £000 £000 £000 £000 £000 £000 ECONOMY & DEVELOPMENT Paisley Art Centre Redevelopment 2,881 741 128 869 869 0 0% 3,750 3,750 0 0% Paisley Town Hall Redevelopment 24,747 1,250 -250 1,000 1,000 0 0% 25,747 25,747 0 0% Paisley Learning & Cultural Hub 6,654 66 280 346 346 0 0% 7,000 7,000 0 0% Paisley Museum 39,228 13,527 -634 12,893 12,893 0 0% 52,122 52,122 0 0% Paisley Junctions and Charging Hub 431 0 194 194 194 0 0% 625 625 0 0% Public Realm 494 3,393 -3,093 300 300 0 0% 5,050 5,050 0 0% Sports Development - St James Playing Fields Redevelopment 426 0 3,075 3,075 3,075 0 0% 3,500 3,500 0 0% Sports Development - Ferguslie Pavillion Upgrade 531 0 460 460 460 0 0% 992 992 0 0% Sports Development - Hockey Pitch at On-X 0 0 600 600 600 0 0% 600 600 0 0% Town Centre Capital Fund 766 74 35 109 109 0 0% 876 876 0 0% Place Based Investment Fund 1,842 2,219 366 2,585 2,585 0 0% 4,428 4,428 0 0% Town Centre Regeneration 1 240 -60 180 180 0 0% 2,050 2,050 0 0% Shared Prosperity Fund 197 0 28 28 28 0 0% 225 225 0 0% RCGF PACE Theatre 1,084 210 -210 0 0 0 0% 1,084 1,084 0 0% Townscape Heritage CARS 2 3,876 0 223 223 223 0 0% 4,099 4,099 0 0% Total Economy & Development 83,158 21,720 1,142 22,862 22,862 0 0% 112,148 112,148 0 0% TOTAL ECONOMY & DEVELOPMENT 83,158 21,720 1,142 22,862 22,862 0 0% 112,148 112,148 0 0% RENFREWSHIRE COUNCIL CAPITAL INVESTMENT STRATEGY - NON-HOUSING SERVICES 1 April 2024 to 21 June 2024 POLICY BOARD: ECONOMY & REGENERATION Current Year 2024-25 Full Programme - All years Budget Variance (Adverse) or Favourable Budget Variance (Adverse) or Favourable