Item 10 - General Services Revenue Budgetary Control Report to 30th June 2025 (Period 3)
West Dunbartonshire Council · 27 August 2025
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WEST DUNBARTONSHIRE COUNCIL Report by the Chief Officer – Resources Council – 27th August 2025 ___________________________________________________________________ Subject: General Services Revenue Budgetary Control Report to 30th June 2025 (Period 3) 1. Purpose 1.1 The purpose of this report is to advise Council of the 2025/26 Revenue Budget position at 30 June 2025 and the forecast position of the General Fund Reserve as at 31 March 2025. 2. Recommendations 2.1 Council is asked to note a current projected annual underlying adverse variance (after the use of earmarked reserves) on the revenue account of £1.282m (0.41% of total budget). 3. Background 3.1 At the meeting of West Dunbartonshire Council (the Council) on 6 March 2025, members agreed the revenue estimates for 2025/2026. A total net budget of £311.491m was approved for General Services. 4. Main Issues 4.1 The summary report at Appendix 1 highlights a projected net annual underlying adverse variance (overspend) of £1.282m (0.41% of the total budget. Appendix 2 provides more detailed service reports by Chief Officer. The main reason for this overspend is detailed in the table below with explanations provided in Appendix 3. Services are anticipating the use of £1.604m of service earmarked reserves. In addition, as a result of the reduction in contribution to Strathclyde Pension Fund a forecast £4.294m will be transferred to the pension smoothing reserve. Service Variances £m £m Resources: Under recovery of rental income based on updated tenancies Increase utility costs reflecting 24/25 actuals Unbudgeted cost of Asset Valuations Mainly due to turnover saving not achieved in year 0.207 0.139 0.067 0.046 0.459 Regulatory & Regeneration : Small underspends across service (0.086) (0.086) ITEM 10
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Citizens, Culture and Facilities: Employee vacancies across Catering, Building Cleaning & Facilities (0.386) (0.386) Education: Increased Property Costs in relation to Non- Domestic Rates & Grounds Maintenance Job Evaluation award – Grade 3 to Grade 4 Smaller overspends throughout service 0.338 0.321 0.048 0.707 Roads & Neighbourhood Services: Increased cost of providing current level of service across employee costs, plant hire, materials and transport costs. Under recovery in Crematorium income Smaller overspends throughout service 0.355 0.100 0.080 0.515 Housing & Employability: Supported Accommodation inflationary pressures 0.097 0.097 Other service movements less than £0.050m (0.024) (0.024) Net adverse variance at Period 3 1.282 4.2 Information on any projected annual variances in excess of £0.050m are highlighted and noted within Appendix 3, with additional information on action being taken to minimise or mitigate overspends where possible. 4.3 A list of agreed efficiencies and management adjustments totalling £6.017m is shown within Appendix 4. Current indications show that £5.627m is on target to be achieved. However, Appendix 4 also shows that it is anticipated that £0.390m will not be achieved and will be funded by the smoothing fund. General Fund Reserves Position 4.4 Appendix 5 shows the latest position in respect of Unallocated and Earmarked Reserves and shows the projected balance as at 31 March 2026: Unearmarked Balance (£m) Earmarked Balance (£m) Total General Fund Reserves (£m) As at 31 March 2025 3.642 8.821 12.463 Projected in year use of reserves (1.282) (1.604) (2.682) Forecast in-year movement – Pension Saving 0.000 4.294 4.294 Projected Balance as at 31 March 2026 2.360 11.511 13.871 4.5 A breakdown of the 2025/26 earmarked balances and the movements in reserves is summarised in Appendix 6.
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4.6 The Council’s General Fund contingency (Prudential Target) is set at 3% of net expenditure for 2025/26 and amounts to £6.090m. After taking into consideration the forecast adverse outturn position of £1.282m at 31 January 2026, the Council is currently forecast to be £3.730m below the current Prudential Target as at 31 March 2026. A strategy to rebuild reserves will be presented to Council as part of the October Finance Update. 5. Option Appraisal 5.1 No option appraisal was required for this report. 6. People Implications 6.1 There are no people implications. 7. Financial and Procurement Implications 7.1 The report notes the projected in-year financial position for both General Services revenue and capital budgets. 8. Risk Analysis 8.1 The main risks are as follows: (a) The present variances should be viewed in the knowledge that there are a number of variable factors which could arise between now and 31 March which could affect the year end; (b) As a consequence of current market conditions, capital receipts may either not be received or they may be less than anticipated. The budget assumption is that all capital receipts achieved in 2025/26 will be used for principal and premium repayments within the loan charges budget. Any shortfall in capital receipts below that budgeted amount will adversely affect the revenue budget position. This is being closely monitored and any issues will be reported to Council; (c) As a consequence of current market conditions, inflation remains volatile and interest rates are reducing more gradually than initially anticipated. To forecast for the full year costs budget assumptions have been required (particularly around energy costs and interest rates). These assumptions continue to change regularly and therefore it is likely that the projected year end budgetary position will change from that reported. 9. Equalities Impact Assessment (EIA) 9.1 No equalities impact assessment was required in relation to this report. 10. Environmental Sustainability
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10.1 No assessment of environmental sustainability was required in relation to this report. 11. Consultation 11.1 All services involved in delivering the revenue and capital budgets have been consulted in the compilation of this report. 12. Strategic Assessment 12.1 Proper budgetary control and sound financial practice are cornerstones of good governance and support Council and officers to pursue the strategic priorities of the Council’s current Strategic Plan. This report forms part of the financial governance of the Council. __________________ Laurence Slavin Chief Officer – Resources Date: 28 August 2025 __________________________________________________________________ Person to Contact: Carol Alderson. Finance Manager Council Offices, Church Street, Dumbarton E-mail: carol.alderson@west-dunbarton.gov.uk Appendices: Appendix 1 - Revenue Budgetary Control 2025/26 – Corporate Summary; Appendix 2 - Revenue Budgetary Control 2025/26 – Chief Officer Summaries; Appendix 3 - Analysis of Revenue Variances over £50,000; Appendix 4 - Monitoring of Efficiencies Appendix 5 - Reconciliation of General Fund Reserves Appendix 6 - Monitoring of Earmarked Balances Background Papers: Ledger output – Period 3; General Services Revenue Estimates 2025/26 Wards Affected All Wards