Revenue and Capital Budget Monitoring 2024-25 at 7 January 2025
Renfrewshire Council · 19 March 2025
Back to Infrastructure, Land and Environment Policy Board — 19 March 2025 and its agenda
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___________________________________________________________________ To: Infrastructure, Land and Environment Policy Board On: 19 March 2025 ___________________________________________________________________ Report by: Director of Finance and Resources Director of Environment, Housing & Infrastructure ___________________________________________________________________ Heading: Revenue and Capital Budget Monitoring 2024/25 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 Infrastructure, Land and Environment Policy Board is an overspend position of £1.210m (3.6%) against the revised budget for the year. 1.2 The projected capital outturn at 31 March 2025 for projects reporting to the Infrastructure, Land and Environment 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 Director of Environment, Housing & Infrastructure 33,369 34,579 (1,210) (3.6%) Total 33,369 34,579 (1,210) (3.6%) Capital Environment & Infrastructure 18,431 18,431 0 0.0%
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2. Recommendations 2.1 It is recommended that the Infrastructure, Land and Environment Policy Board: a) Note the projected Revenue outturn overspend position of £1.210m. b) Note the projected Capital outturn break-even position. c) Note that the service is currently conducting an exercise to ascertain the costs associated with Storm Eowyn in January. An element of storm related costs have been included within the services projected outturn position, however, these costs could rise, affecting the outturn position. This will be reported at the year-end within the outturn report to Council. 3. Revenue Budget Projection – overspend of £1.210m by 31 March 2025 3.1 The tables in Appendix 1 and 2 present the projected year-end position for all services reporting to this board, by both objective analysis (which division is spending the budget – appendix 1) and subjective analysis (what the budget is spent on – appendix 2). 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, and that budget holders are obliged to seek mitigating action to minimise significant budget variances. The final outturn position will be reported to Council in June. 4. Objective Analysis – Significant Variances 4.1 Environment, Housing and Infrastructure – (£1.210m) projected overspend Waste Services – (£1.054m) overspend by 31 March 2025 This reflects the financial position for Refuse Collection, Refuse Disposal and Household Waste Recycling Centres. The overspend for Refuse Collection in the main relates to an estimated under-recovery of income relating to trade waste equating to £256k. As previously reported, commercial waste customer volumes have reduced over the last few years due to a number of factors. The service is currently reviewing the opportunities to reduce costs attributable to the collection and disposal of trade waste to better align with customer numbers and tonnages collected.
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It is also anticipated that there will be a projected overspend in employee costs (£0.258m) as a result of agency staff and overtime being required to cover absence and vacancies, in addition to a projected overspend in transport costs (£0.094m) as a result of non-fair wear and tear costs being higher than budgeted. The reported overspend also includes the increased costs related to the purchase of bins resulting in a projected overspend of £0.101m. Similar to other areas within the services, the impact of inflationary increases for goods and services remains a contributing factor to the overspend currently projected for this service area. As previously reported to the board, Refuse Disposal has seen a reduced level of tonnages being disposed of as a result of the reduction in the customer base and this has been reflected in the projected outturn. The reported overspend within Refuse Disposal, in the main reflects the increase in the POPs/WUDs costs, in addition to fluctuations in prices relating to Refuse Disposal contracts. The estimated annual net spend for this area has reduced since last period to £628k, which results in an overspend against budget of £133k. Neighbourhood Services – (£0.071m) Overspend by 31 March 2025 The projected overspend in Neighbourhood Services is due to anticipated work by contractor costs resulting from the damage caused by Storm Eowyn. Fleet Services – £0.146m over-recovery by 31 March 2025 The current anticipated over-recovery forecast in Fleet Services reflects an agreed budget adjustment from Miscellaneous Services to mitigate the inflationary pressures on material and contractor costs that the service has faced. Due to the reactive nature of the service, the projections will continue to be closely monitored for the remainder of the financial year. Due to the significant cost increases, the service level agreements are currently under review to ensure operational services across the council are charged appropriately to cover costs.
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Social Transport – (£0.304m) overspend by 31 March 2025 The two main areas of this projected overspend relate to employee costs (£0.173m) and external vehicle hire (£0.129m). At present, there has been a requirement to recruit agency staff due to sickness and vacancies. In addition, due to the ageing fleet within the Social Transport service, the service is having to place significant reliance on the utilisation of external vehicle hires in the delivery of the service. Parking - £0.136m over-recovery by 31 March 2025 The reported position within Parking has increased to £0.136m in period 10 and in the main relates to increased parking fine income in addition to an underspend in employee costs. 5. Subjective Analysis – Significant Variances 5.1 Premises Related – (£0.138m) overspend by 31 March 2025 The overspend primarily relates to the anticipated overspend for the purchase of bins (£0.101m), as mentioned above in 4.1. 5.2 Transport Related – (£0.480m) overspend by 31 March 2025 The current projected overspend (6.3%) is as a result of the significant increase in the cost of replacement parts for vehicles, vehicle hire to cover service requirements due to the use of specialist contractors (£0.333m) and also the costs of disposal of some of the aging fleet. 5.3 Supplies and Services – (£1.418m) overspend by 31 March 2025 The projected overspend in Supplies and Services is in the main related to three main service areas, namely Refuse Disposal (£0.447m), Fleet (£0.210) and Road operations (£0.353m). Within each of these areas, the impact of inflation is the main contributing factor as costs relating to work by contractors, materials and market fluctuations for disposal contracts within Refuse Disposal, for example, are seeing significant inflationary increases. The overspend within Fleet is offset by an over-recovery in recharge income.
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5.4 Income – £0.847m over recovery by 31 March 2025 The current projected over-recovery relates to recharged income within Roads operations (£0.304m) and increased income within Fleet Services for the charges relating to external vehicle hire and non-fair wear and tear (£0.522m). The income over-recovery highlighted above is predominately offset by an anticipated under-recovery for trade waste income, as mentioned in note 4.1. 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 Budget holders are obliged to seek mitigating action to minimise significant budget variances. There are no such virements this period. 7. Capital Budget Projection – break even position by 31 March 2025 7.1 The Capital Investment Programme 2024/25 to 2028/29 was approved by the Council on 29 February 2024. For Infrastructure Land & Environment the revised capital spend for 2024/25 is forecast as £18.431m. 7.2 The in-year Capital budget is forecast to break even by 31 March 2025 however, this will be monitored as the projects progress. Further details of the programme can be found in the Capital Monitoring report at Appendix 3. 7.3 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 £0.253m, are as follows:
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Capital Budget Adjustments Project Amount (£m) Reason Traffic Management (0.253) Deceleration from 2024/25 into 2025/26 to reflect updated project phasing. Budget Transfers Roads/Footways Upgrade Programme (0.002) Budget Transfers for minor under/overspends in 2024/25 Parks Improvement Programme (0.002) Parks – Multi Use Games Area (0.007) Improvement to Outdoor Access and Play Area Programme 0.009 Active Travel Transformation Fund 0.002 Total (0.253) 8. Looking Forward 8.1 As set out in this report, and in previous reports presented to board the service has and will continue to seek to mitigate the financial pressures placed on staff, premises, transport, supplies and services budgets, through management action. There have been several actions taken during 2024/25 through this board that will support the financial position going forward, such as policy changes, charging mechanisms, additional budget allocation in 2025/26 budget and ongoing work to consider what support can be given to pay pressures. Further work will be undertaken by the service over the course of the next financial year to determine opportunities to support the budget and delivery of the Council’s financial strategy. Within the budget for the next financial year, the Council agreed to allocate additional funding as part of the 2025/26 revenue budget for POPs/WUDs disposal, costs associated with increased households, some waste disposal contract inflation, some inflationary pressures on vehicles and new funding for CWRR(bridge) team totalling £2.65m. Several actions during 2024/25, has resulted in budget being transferred in relation to pay inflation on overtime within Waste Services overtime, costs associated with Biomass fuel
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The impact of inflation and cost of living on Supplies and Services and pay rates will continue to be seen within the service budgets. The 2025/26 Revenue Estimates report to Council noted that service budgets are still under pressure. The above budget decisions, along with further management actions should assist in helping to reduce the overspend position presented next year and that the Financial Sustainability Fund will be used to support overspends over the medium term. ___________________________________________________________________ Implications of the Report 1. Financial The projected budget outturn position for the Infrastructure, Land and Environment Revenue budget is an overspend of £1.210m. 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 by budget holders to mitigate any overspend. The projected outturn position for the Infrastructure, Land and Environment Capital budget is a break-even position. 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
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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 lifecycle maintenance improvements to existing properties and replacement of ICT assets and infrastructure. 6. Information Technology There are no direct implications arising from the recommendations in this report. 7. Equality & Human Rights There are no direct implications arising from the recommendations in this report. 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 this report.
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10. Risk The potential risk that the Council will overspend its approved budgets for the year will be 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. 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. 13. Cosla Policy Position N/A 14. Children’s Rights There are no direct implications arising from the recommendations in this report. List of Background Papers • The Capital Investment Programme 2024/25 to 2028/29, Council 28 February 2024 Author: Lisa Dickie, Finance Business Partner, Gordon McNeil, Director of Environment, Housing & Infrastructure and Geoff Borland, Finance Manager (Capital)
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Appendix 1 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 £000 Directorate and Service Development 1,295 54 1,349 1,296 53 3.9% 54 (1) Refuse Collection 5,158 279 5,437 6,222 (785) (14.4%) (949) 164 Household Waste Recycling Centres 1,018 31 1,049 1,078 (29) (2.8%) 1 (30) Refuse Disposal 7,805 27 7,832 8,072 (240) (3.1%) (164) (76) Neighbourhood Services 6,272 317 6,589 6,660 (71) (1.1%) 91 (162) Fleet Services (28) 84 56 (90) 146 260.7% 22 124 Social Transport 1,127 55 1,182 1,486 (304) (25.7%) (276) (28) Roads Operations 3,383 88 3,471 3,486 (15) (0.4%) 37 (52) Infrastructure and Assets 1,828 63 1,891 1,979 (88) (4.7%) (80) (8) Transportation & Active Travel 798 (87) 711 763 (52) (7.3%) 30 (82) Parking of Vehicles (692) 312 (380) (516) 136 35.8% 36 100 Street Lighting Maintenance Work 520 12 532 444 88 16.5% 86 2 Energy Management Unit 372 14 386 386 0 0.0% 0 0 Strathclyde Partnership for Transport Requisition 3,265 0 3,265 3,313 (48) (1.5%) (48) 0 NET EXPENDITURE 32,121 1,248 33,369 34,579 (1,210) (3.6%) (1,160) (50) Budget Variance (Adverse) or Favourable RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2024/25 1 April 2024 to 7 January 2025 POLICY BOARD : INFRASTRUCTURE, LAND AND ENVIRONMENT
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Appendix 2 RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2024/25 1 April 2024 to 7 January 2025 POLICY BOARD : INFRASTRUCTURE, LAND AND ENVIRONMENT 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 23,422 1,004 24,426 24,355 71 0.3% (33) 104 Premises Related 1,225 191 1,416 1,554 (138) (9.8%) (157) 19 Transport Related 7,683 (4) 7,679 8,159 (480) (6.3%) (558) 78 Supplies and Services 13,243 722 13,965 15,383 (1,418) (10.2%) (1,226) (192) Third Party Payments 3,298 0 3,298 3,322 (24) (0.7%) (20) (4) Transfer Payments 160 6 166 204 (38) (22.9%) (50) 12 Support Services 714 0 714 743 (29) (4.1%) (50) 21 Depreciation and Impairment Losses 0 0 0 0 0 0.0% 0 0 GROSS EXPENDITURE 49,745 1,918 51,663 53,720 (2,057) (4.0%) (2,094) 37 Income (17,624) (670) (18,294) (19,141) 847 4.6% 934 (87) NET EXPENDITURE 32,121 1,248 33,369 34,579 (1,210) (3.6%) (1,160) (50)
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Appendix 3 Prior Years Approved Budget Revised Projected Expenditure Budget Adjustments Budget Outturn Total Approved Projected to 31/03/2024 2024-25 since previous 2024-25 2024-25 Budget Outurn Project Title Board report to 31-Mar-27 to 31-Mar-27 £000 £000 £000 £000 £000 £000 £000 ENVIRONMENT & INFRASTRUCTURE Active Travel Funding Tier 1 0 1,333 0 1,333 1,333 0 0% 4,533 4,533 0 0% LADA 0 49 0 49 49 0 0% 49 49 0 0% Roads/Footways Upgrade Programme 0 7,742 (2) 7,740 7,740 0 0% 24,142 24,142 0 0% Vehicle Replacement Programme 0 3,482 0 3,482 3,482 0 0% 11,582 11,582 0 0% Bridge Assessment/Strengthening 0 321 0 321 321 0 0% 1,320 1,320 0 0% Lighting Columns Replacement 0 1,410 0 1,410 1,410 0 0% 3,410 3,410 0 0% Traffic Management 0 274 (253) 21 21 0 0% 274 274 0 0% Parks Improvement Programme 1,173 31 (2) 29 29 0 0% 1,204 1,204 0 0% Improvements to Outdoor Access and Play Area Programm 353 116 9 125 125 0 0% 470 470 0 0% Active Travel Transformation Fund 319 628 2 630 630 0 0% 947 947 0 0% SPT - People in Place Fund 0 72 0 72 72 0 0% 72 72 0 0% Flooding 0 205 0 205 205 0 0% 205 205 0 0% Multi Purpose Bins 60 135 0 135 135 0 0% 195 195 0 0% Road Safety 681 272 0 272 272 0 0% 953 953 0 0% Renewal of Play Parks 238 688 0 688 688 0 0% 2,093 2,093 0 0% Parks - Multi Use Games Area 104 7 (7) 0 0 0 0% 112 112 0 0% Nature Restoration Fund 377 391 0 391 391 0 0% 908 908 0 0% Lawn Tennis Association 295 56 0 56 56 0 0% 350 350 0 0% Recycling Improvement Fund 374 250 0 250 250 0 0% 374 374 0 0% Public Realm - Paisley Abbey 0 300 0 300 300 0 0% 300 300 0 0% Recycling Improvement Fund 0 757 0 757 757 0 0% 757 757 0 0% Strathclyde Partnership Transport 0 165 0 165 165 0 0% 165 165 0 0% TOTAL INFRASTRUCTURE, LAND & ENVIRONMENT BOARD 4,137 18,684 (253) 18,431 18,431 0 0% 54,578 54,578 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. RENFREWSHIRE COUNCIL CAPITAL INVESTMENT STRATEGY - NON-HOUSING SERVICES 1st April to 7th January 2025 POLICY BOARD: INFRASTRUCURE, LAND & ENVIRONMENT Current Year 2024-25 Full Programme - All years Budget Variance (Adverse) or Favourable Budget Variance (Adverse) or