Revenue and Capital Budget Monitoring as at 7 January 2025 - Final Report
Renfrewshire Council · 23 April 2025
Back to Leadership Board — 23 April 2025 and its agenda
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___________________________________________________________________ To: Leadership Board On: 23 April 2025 ___________________________________________________________________ Report by: Chief Executive, Director of Finance and Resources, and Chief Finance Officer Renfrewshire HSCP ___________________________________________________________________ Heading: Revenue and Capital Budget Monitoring as 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 Leadership Board was an overspend position of £3.618m (2.8%) against the revised budget for the year. 1.2. The projected capital outturn at 7 January 2025 for projects reporting to the Leadership Board is a break even position against the revised budget for the year. 1.3. This is summarised in the tables below and further analysis is provided in the Appendices. Revised Annual Budget £000 Projected Outturn £000 Budget Variance (Adv)/Fav £000 Budget Variance % Revenue Adult Services 106,810 110,476 (3,666) (3.4%) Chief Executive’s Service 20,487 20,439 48 0.2% Total 127,297 130,915 (3,618) (2.8%) Capital 24,643 24,643 0 0%
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2. Recommendations 2.1. Members are requested to: a) Note the projected Revenue outturn overspend position of £3.618m; b) Note the projected Capital outturn break-even position; c) Note the budget adjustments detailed at section 6.2. _________________________________________________________ 3. Revenue Budget Projection – overspend of £3.618m 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. This is the last Budget monitoring report until the outturn position is presented to the Council in June. Budget holders are obliged to seek mitigating action to minimise significant budget variances. _________________________________________________________ 4. Objective Analysis – Significant Variances 4.1. Adult Services - £3.666m overspend The overspend is mainly due to external care at home packages for both Older People and those with Physical or Sensory Difficulties. This results from increased acuity of patients with more complex needs discharged from hospital, meaning more intensive Care at Home packages are required to support people to remain in their own homes. The overspend is further impacted by inflationary increases as a result of the adult supported living framework renewal in November 2024. Since the last report the overspend has reduced by £0.977m mainly due to vacancy management controls now in place, and further recovery of payments relating to changes in package costs. This forecast position now includes costs associated with the care at home staff regrade. 4.2. Chief Executive’s Services - £0.048m underspend There are no significant variances to report for those divisions of the Chief Executives Service reporting to this Policy Board. _________________________________________________________
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5. Subjective Analysis – Significant Variances 5.1. Employee Costs - £1.559m underspend This forecast underspend predominantly arises within Adult Services (£1.512m) due to the ongoing recruitment challenges and retention issues across all service areas due to the limited availability of the required skills mix. 5.2. Premises Related - £0.136m overspend This forecast overspend within Adult Services relates to increased cleaning costs and repairs, including the purchase of track hoists. 5.3. Transport Related - £0.050m underspend This forecast underspend relates fully to Adult Services and reflects current vehicle demand for the service and a reduction in employee travel costs. 5.4. Third Party Payments - £4.829m overspend This forecast overspend relates fully to Adult Services and is mainly due to external care at home packages. This results from increased acuity of patients discharged from hospital, with more complex needs, meaning more intensive Care at Home packages are required to support people to remain in their own homes. Further overspends are forecast within adult supported living packages and carer's respite, reflective of client needs and demand for these services. The position is further impacted by anticipated inflationary increases as a result of the adult supported living framework renewal in November 2024 and the agenda for change increase on the Nursing National Care Home Contract rate. Since the last report the overspend has reduced by £1.292m mainly due to the ongoing review and scrutiny of third party payments. 5.5. Transfer Payments - £0.325m overspend This forecast overspend arises within Adult Services due to a projected increase to the provision for bad debts, based on current outstanding debt levels. 5.6. Income - £0.085m over-recovery Adult Services is currently reporting an expected over-recovery on income from community alarms due to an increase in the number of service users; this offsets community alarm contractual increases. The projected over- recovery also relates to funds received for new charging orders registered so far during 2024/25, and also new out-of-area placements within our care homes allowing us to recover additional income. _________________________________________________________
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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. 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. 6.2. The following budget adjustments are the allocation of centrally-held and reserve budgets, and are therefore for noting only: Objective Heading Subjective Heading Amount (£m) Reason Adult Services Employees 0.350 Pay award inflation 24/25 transferred from centrally- held budgets Chief Executive’s Service Employees 0.155 Chief Executive’s Service Supplies and Services 0.139 Pay award inflation 24/25 for OneRen transferred from centrally-held budgets Chief Executive’s Service Transfer Payments 0.066 Fairer Renfrewshire project transferred from ringfenced reserves _________________________________________________________ 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. The Leadership Board approved capital spend for 2024/25 was £28.034m. 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 2. 7.3. Budget adjustments totalling £3.391m since Period 8 have taken place between years to reflect revised programming of capital projects. The revised capital spend for 2024/25 is £24.643m, and details of these adjustments are as follows:
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Capital Budget Adjustments Project Amount (£m) Reason GAIA Regeneration (3.391) Reprofiled from 2024/25 to 2025/26 to reflect expected cash flow timings. Total (3.391) Implications of the Report 1. Financial The projected budget outturn position for the Leadership Revenue budget is an overspend of £3.618m (2.8%) 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 by services to mitigate any overspend. The projected outturn position for the Leadership Capital budget is break even, after the adjustments outlined at section 7. 2. HR & Organisational Development None directly arising from 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
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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 new assets (City Deal), regeneration (GAIA and AMIDS) and refurbishment and improvement of leisure and culture assets. 6. Information Technology While ICT assets and revenue costs are included within these reported budgets, there are no direct implications arising from the recommendations in this report. 7. Equality & Human Rights While certain 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 a key 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 There are no direct implications arising from the recommendations in this report.
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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 Revenue Budget and Council Tax 2024/25, Council, 29 February 2024. 2024-25 Delegated Health and Social Care Budget, Renfrewshire Integration Joint Board, 22 March 2024 Non-Housing Capital Investment Programme, Prudential Framework and Treasury Management Strategy, and Capital Strategy 2024/25 – 2028/29, Council, 29 February 2024. ___________________________________________________________________ Authors: Revenue - Valerie Howie, Finance Business Partner / Alison Burns, Corporate Finance Manager Capital – Geoff Borland, Finance Manager
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Appendix 1 RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2024/25 1 April 2024 to 7 January 2025 POLICY BOARD : LEADERSHIP BOARD Objective 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 Adult Services 106,460 350 106,810 110,476 (3,666) (3.4%) (4,643) 977 Chief Executive's Service 20,127 360 20,487 20,439 48 0.2% 35 13 NET EXPENDITURE 126,587 710 127,297 130,915 (3,618) (2.8%) (4,608) 990 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 41,672 2,294 43,966 42,407 1,559 3.5% 1,712 (153) Premises Related 839 1 840 976 (136) (16.2%) (71) (65) Transport Related 814 0 814 764 50 6.1% 51 (1) Supplies and Services 18,395 140 18,535 18,556 (21) (0.1%) (122) 101 Third Party Payments 68,585 350 68,935 73,764 (4,829) (7.0%) (6,121) 1,292 Transfer Payments 26,354 364 26,718 27,043 (325) (1.2%) (103) (222) Support Services 106 1 107 108 (1) (0.9%) 0 (1) GROSS EXPENDITURE 156,765 3,150 159,915 163,618 (3,703) (2.3%) (4,654) 951 Income (30,178) (2,440) (32,618) (32,703) 85 0.3% 46 39 NET EXPENDITURE 126,587 710 127,297 130,915 (3,618) (2.8%) (4,608) 990
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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 Older People 59,444 223 59,667 61,965 (2,298) (3.9%) (2,636) 338 Physical or Sensory Difficulties 14,347 13 14,360 15,086 (726) (5.1%) (824) 98 Learning Difficulties 27,255 98 27,353 27,181 172 0.6% (294) 466 Mental Health Needs 4,697 12 4,709 5,548 (839) (17.8%) (1,020) 181 Addiction Services 717 3 720 694 26 3.6% 131 (105) NET EXPENDITURE 106,460 350 106,810 110,476 (3,666) (3.4%) (4,643) 977 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 38,007 2,140 40,147 38,635 1,512 3.8% 1,673 (161) Premises Related 456 1 457 593 (136) (29.8%) (70) (66) Transport Related 813 0 813 763 50 6.2% 51 (1) Supplies and Services 3,671 1 3,672 3,688 (16) (0.4%) (97) 81 Third Party Payments 68,585 350 68,935 73,764 (4,829) (7.0%) (6,121) 1,292 Transfer Payments 24,389 298 24,687 25,033 (346) (1.4%) (126) (220) Support Services 74 0 74 75 (1) (1.4%) 1 (2) GROSS EXPENDITURE 135,995 2,790 138,785 142,551 (3,766) (2.7%) (4,689) 923 Income (29,535) (2,440) (31,975) (32,075) 100 0.3% 46 54 NET EXPENDITURE 106,460 350 106,810 110,476 (3,666) (3.4%) (4,643) 977 Budget Variance (Adverse) or Favourable RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2024/25 1 April 2024 to 7 January 2025 Budget Variance (Adverse) or Favourable POLICY BOARD: LEADERSHIP BOARD - ADULT SERVICES
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Appendix 1 RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2024/25 1 April 2024 to 7 January 2025 POLICY BOARD: LEADERSHIP BOARD - CHIEF EXECUTIVE'S SERVICE Objective 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 Chief Executive and Management 268 12 280 278 2 0.7% (1) 3 Policy and Commissioning 3,705 147 3,852 3,822 30 0.8% 9 21 Marketing and Communications 2,719 61 2,780 2,764 16 0.6% 27 (11) City Deal & Infrastructure 29 0 29 29 0 0.0% 0 0 Leisure Services (incl Renfrewshire Leisure) 13,406 140 13,546 13,546 0 0.0% 0 0 NET EXPENDITURE 20,127 360 20,487 20,439 48 0.2% 35 13 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 3,665 154 3,819 3,772 47 1.2% 39 8 Premises Related 383 0 383 383 0 0.0% (1) 1 Transport Related 1 0 1 1 0 0.0% 0 0 Supplies and Services 14,724 139 14,863 14,868 (5) 0.0% (25) 20 Third Party Payments 0 0 0 0 0 0.0% 0 0 Transfer Payments 1,965 66 2,031 2,010 21 1.0% 23 (2) Support Services 32 1 33 33 0 0.0% (1) 1 GROSS EXPENDITURE 20,770 360 21,130 21,067 63 0.3% 35 28 Income (643) 0 (643) (628) (15) (2.3%) 0 (15) NET EXPENDITURE 20,127 360 20,487 20,439 48 0.2% 35 13
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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 since previous 2024-25 2024-25 Budget Outurn Project Title Board report to 31-Mar-29 to 31-Mar-29 £000 £000 £000 £000 £000 £000 £000 LEISURE SERVICES Artificial Pitches Fund 0 800 0 800 800 0 0% 800 800 0 0% Community Halls Refurbishment 24,920 162 0 162 162 0 0% 25,751 25,751 0 0% Linwood Running Track at On-X 4 450 0 450 450 0 0% 454 454 0 0% Lagoon Internal Play Centre 0 0 0 0 0 0 0% 1,000 1,000 0 0% Total Leisure Services 24,924 1,412 0 1,412 1,412 0 0% 28,005 28,005 0 0% CHIEF EXECUTIVES City Deal Projects Glasgow Airport Investment Area 40,849 2,215 0 2,215 2,215 0 0% 43,064 43,064 0 0% Clyde Waterfront & Renfrew Riverside 98,513 19,261 0 19,261 19,261 0 0% 117,824 117,824 0 0% Airport Access 2,934 0 0 0 0 0 0% 141,992 141,992 0 0% Economic Development GAIA Regeneration 0 3,391 (3,391) 0 0 0 0% 3,391 3,391 0 0% AMIDS: Public Realm Phase 1 Netheron Square 3,808 126 0 126 126 0 0% 3,933 3,933 0 0% AMIDS: District Heating Network 6,783 311 0 311 311 0 0% 7,093 7,093 0 0% AMIDS: South 5,432 1,318 0 1,318 1,318 0 0% 43,098 43,098 0 0% Total Chief Executives 158,319 26,622 (3,391) 23,231 23,231 0 0% 360,395 360,395 0 0% TOTAL LEADERSHIP BOARD 183,243 28,034 (3,391) 24,643 24,643 0 0% 388,400 388,400 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: LEADERSHIP Current Year 2024-25 Full Programme - All years Budget Variance (Adverse) or Favourable Budget Variance (Adverse) or Favourable