Agenda item

To receive and scrutinise the Authority’s financial management report. The report provides a full overview of both the budget and service delivery performance position across the Authority as at 31 May 2023.

The Committee received a report that had been considered by Cabinet at its meeting 31 July 2023 in relation to 2022/23 Finance Outturn Report.

The report summarised the full overview of both the budget and service delivery performance position across the Authority as of 31 May 2023.

The Committee was informed that the General Fund will outturn with a pressure of £11.7m and the Housing Revenue Account will have a forecast underspend of £0.015m. In terms of performance, whilst service delivery remained strong there continued to be high levels of demand in several areas including Education, Health and Care Needs Assessments, children in care and home care.

The committee was informed that while the Section 106 figures are currently reported separately, in future they will be incorporated into this report.

A member asked if there was a tipping point where the provision of school meal services by the Authority would become financially unviable. The Director of Resources confirmed this was being monitored, ensuring the most efficient use of funds.

A member asked if the slowdown in inflation had been factored into budgetary concerns. In response the Director of Resources stated that rising and falling costs in different areas were being monitored and changes would be reflected in future reports, and currently energy prices were a key driver of costs.

A member raised a question about staff retention figures, the Director of Resources stated this is monitored by the Council, and those figures can be shared in writing and to note that there was a recent return of staff from EQUANS. The Assistant Chief Executive noted that work was continuing in recruiting and retraining staff, particularly with legal and social workers.

A member asked for further information on the DV081 North Shields Quarter amount of £0.250m, the Director of Resources stated we can share those figures in writing.

A member enquired about whether the Looked After Children figures included children seeking asylum. A senior business partner confirmed these figures did include those, and that the Council currently has 33 children seeking asylum but this figure is below the Government’s mandated level.

Another member raised their concern about forecasted budget overspends and enquired as to the possible use of reserves. The Director of Resources confirmed that there would probably be some usage of the Strategic Reserve due to an uncertainty in funding. The 15 medium term plan themes had been created to tackle the areas of highest pressure giving best value for money and would drive the strategy going forward.

A member raised a question about the staff car parking charges and if they would be reinstated. The Deputy Mayor stated that the charges were stopped during Covid 19 and there had been no decision as to if, and when, this would be reinstated.

A question was also asked about the reduced number of taxi drivers and service costs, and what was being done to address these issues. The Director of Resources stated he would invite a comment from officers in the service.

The rising costs of the Mouth of the Tyne festival were queried. The Director of Resources stated this was due to above inflationary costs for equipment, and these costs would be factored in going forward.

A member asked how the cost pressure on Street Lighting due to energy process was to be addressed. The Director of Resources stated that the Council was looking to balance this pressure with the anticipated contribution from reserves and some of the underspend from within Environment.

A member asked what the current road resurfacing spend was, this was confirmed as £3.6m.

It was Agreed that (1) the 2023/24 Financial Management & Performance Reported to 31 May 2023be noted; and (2) the further information requested be circulated to all members of the Committee.