Item 10-Appendix 2
West Dunbartonshire Council · 26 March 2025
Back to West Dunbartonshire Council — 26 March 2025 and its agenda
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 2 HRA REVENUE BUDGETARY CONTROL 2023/24 ANALYSIS FOR VARIANCES OVER £50,000 MONTH END DATE 31 January 2025 PERIOD 10 Budget 2024/25 Forecast Spend 2024/25 £000 £000 £000 % Employee Costs 7,661 7,467 (194) -3% Main Issues Mitigating Action Anticipated Outcome Budget 2024/25 Forecast Spend 2024/25 £000 £000 £000 % Support Services 2,788 2,633 (155) -6% Main Issues Mitigating Action Anticipated Outcome Subjective Analysis Forecast Variance 2024/25 RAG Status Subjective Description Recharge of Central Supports costs ( e.g. Finance, Legal, HR. ICT ) to the HRA Variance Narrative An underspend because the £2.788m budget was overstated because it not account for reduced employer pension contributions across central services. None required. A year end underspend. Variance Analysis Variance Analysis Subjective Analysis Forecast Variance 2024/25 RAG Status Subjective Description Cost of employees charged directly to the HRA. Variance Narrative An employee cost underspend is anticipated as management target staffing efficiencies, including tighter controls on staff recruitment and overtime. None required. A year end underspend.
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 2 HRA REVENUE BUDGETARY CONTROL 2023/24 ANALYSIS FOR VARIANCES OVER £50,000 MONTH END DATE 31 January 2025 PERIOD 10 Budget 2024/25 Forecast Spend 2024/25 £000 £000 £000 % Other Expenditure 330 568 238 72% Main Issues Mitigating Action Anticipated Outcome Budget 2024/25 Forecast Spend 2024/25 £000 £000 £000 % Repairs & Maintenance 15,208 11,800 (3,408) -22% Main Issues Mitigating Action Anticipated Outcome Responsive and planned repair and maintenance services to houses and lockups and income recovered from tenant rechargeable and owner occupier repairs. Variance Narrative A high volume of repair orders and ongoing inflationary pressures are driving up costs, with the most significant pressures across responsive repair and void repair budgets. Officers have reviewed the repairs spend and identified savings against the 2024/2025 repair and maintenance budget by transferring spend charged to revenue to the capital programme. A review of specific workstreams identified revenue funded works that extend the lifespan of the assets. Specifically work carried out in void properties to bring these back to relet standard are significant and include component renewals. Furthermore, the completion of an Electrical Installation Condition Report (EICR) is complementary to the environmental sensor installation programme. Council decided at its meeting of 5th March 2025 that the forecast HMTO surplus 2024/25 of £0.594m would be returned to the HRA revenue account at the end of this financial year. This decision will reduce HRA revenue costs and increased the repairs underspend. A year end underspend Subjective Description Subjective Description Rent abatements, support for young tenants, legal and banking expenses, and other sundry costs. Variance Narrative A rent abatement overspend of £150,000 is forecast because demand is exceeding the new reduced abatement budget. It is worth noting that the 2024/2025 rent abatement spend is forecast to be £190,000 less than the 2023/2024 spend. Ongoing support to Women’s Aid organisations in respect of tenancy sustainment has increased costs by £84,000. Housing Operations and Building Service will continue to place the strictest controls over the abatement process to minimise this spend. HRA payments to Womens Aid will stop on the 31st March 2025. A year end overspend. Variance Analysis Subjective Analysis Forecast Variance 2024/25 RAG Status Subjective Analysis Forecast Variance 2024/25 RAG Status Variance Analysis
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 2 HRA REVENUE BUDGETARY CONTROL 2023/24 ANALYSIS FOR VARIANCES OVER £50,000 MONTH END DATE 31 January 2025 PERIOD 10 Budget 2024/25 Forecast Spend 2024/25 £000 £000 £000 % Bad Debt Provision 876 1,002 126 14% Main Issues Mitigating Action Anticipated Outcome Budget 2024/25 Forecast Spend 2024/25 £000 £000 £000 % Void Loss (Council Tax / Lost Rents) 1,109 1,338 229 21% Main Issues Mitigating Action Anticipated Outcome A year end overspend. The Council needs to make prudent provision for the non collection of HRA debt. HRA debt has been increasing as officers more stringently apply the rechargeable repairs policy for repairs caused by tenant neglect / abuse. These debts are difficult to collect because tenants often have multiple other debts with the Council and others. Housing and Corporate Debt Recovery staff continue to work closely to maximise contact with customers in arrears and to put in place reasonable affordable repayment plans that take account of customers personal circumstances. A year end overspend. Variance Analysis Subjective Analysis Forecast Variance 2024/25 RAG Status Subjective Description Lost rental income for void houses and lockups and the cost of council tax on long term void properties Variance Narrative Council tax payments for longer term void houses are forecast to exceed budget. There are ongoing challenges with utility companies as council staff try and resolve debt on meters and meter reconnections. The poor performance of the utility companies adversely impacts on the length of time properties are void and leads to more empty properties incurring a council tax liability. The service is working with the council tax team / the assessor service to secure relief for several of our longer-term void properties. Whils there has been some success, negotiations are still ongoing about the scope to exclude additional properties from the council tax register. Housing staff will continue to engage with utility companies to highlight meter issues that are preventing properties being available for let. Housing and Building Services staff will continue to prioritise the repair and subsequent allocation of longer term void properties. Housing staff will continue to develop and argue the case for additional council tax relief. Variance Narrative Variance Analysis Subjective Analysis Forecast Variance 2024/25 RAG Status Subjective Description Provision for uncollected rent across range of HRA debts, including rent arrears, rechargeable repairs, factoring repairs.
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WEST DUNBARTONSHIRE COUNCIL APPENDIX 2 HRA REVENUE BUDGETARY CONTROL 2023/24 ANALYSIS FOR VARIANCES OVER £50,000 MONTH END DATE 31 January 2025 PERIOD 10 Budget 2024/25 Forecast Spend 2024/25 £000 £000 £000 % Loan Charges 22,092 26,041 3,949 18% Main Issues Mitigating Action Anticipated Outcome House Rents (51,049) (51,145) (96) 0% Main Issues Mitigating Action Anticipated Outcome Rental income from council house dwellings. Variance Narrative 70 Clydebank East properties will be let during 2024/25 and this provides additional rental income. None required. A year end underspend Subjective Description Variance Analysis Subjective Analysis Forecast Variance 2024/25 RAG Status Subjective Description Loans Fund repayments and the payment of interest and expenses on outstanding HRA debt. Variance Narrative Local authority borrowing costs for medium / long term Public Works Loan Board (PWLB) debt and for short term debt have remained high. The higher interest rates are driving up HRA debt financing costs. The HRA budget assumed that borrowing rates would reduce in 2024/2025. Whilst the Bank of England base rates reduced by 0.25% in early November, 2024/2025 borrowing rates will be higher than budgeted. The Council will continue to actively manage its external / internal borrowing to ensure that borrowing costs are minimised A year end overspend.