Agenda Item No. 5

The Vale of Glamorgan Council

Homes and Safe Communities Scrutiny Committee: 11th  October 2017

Report of the Director of Environment and Housing

Revenue and Capital Monitoring for the Period 1st April to 31st  August 2017

Purpose of the Report

1. To bring to the attention of this Scrutiny Committee, the position in respect of revenue and capital expenditure for the period 1st April to 31st August 2017 regarding those revenue and capital budgets, which form this Committee's remit.

Recommendation

It is recommended that :

1. Scrutiny Committee consider the position with regard to the 2017/18 revenue and capital monitoring.

Reason for the Recommendation

1. That Scrutiny Committee are aware of the position with regard to the 2017/18 revenue and capital budgets.

Background

2. Council on the 1st March 2017 (minute nos. 864, 863 and 862 respectively) approved the Revenue, Capital and Housing Revenue Account (HRA) Budgets for 2017/18. Reports monitoring expenditure are brought to this Committee on a regular basis.

Relevant Issues and Options

Revenue

3. The Revenue Budget and projected outturn for 2017/18 are shown in the table below. The current forecast is for a balanced budget.

4. A graph and table setting out the variance between profiled budget and actual expenditure to date is attached at Appendix 1.
5. Public Sector Housing (HRA) - The HRA is expected to outturn on target and any underspends in year will be offset by additional contributions to Capital Expenditure thus reducing the reliance on Unsupported Borrowing.
6. Council Fund Housing - It is anticipated that this budget will outturn on target, however, this is after a planned transfer from reserves of £56k to fund specific posts and issues arising as a result of the introduction of the Housing Act.
7. Private Housing - There is currently a small favourable variance due to staff vacancies within the division. However, income on the new renewal area is anticipated to be lower than budget at year-end because work needed to research, agree and establish the new renewal area (recently approved as Windsor Road, Penarth) has meant that regeneration works have not yet started. As such, it is anticipated that this service will outturn on target overall by year-end.
8. Regulatory Services - The allocation of £2.1666m represents the Vale of Glamorgan's budget for its share of the Shared Regulatory Service (SRS). A separate set of accounts is maintained for the SRS and periodically reported to the Shared Regulatory Service Joint Committee. At this stage in the year it is anticipated that the SRS will outturn on target.
9. Youth Offending Service - It is anticipated that this service will outturn on target at year end.

2017/18 Savings Targets

10. This year no savings targets have been allocated to services that fall under this Committee's remit.

Capital

11. Appendix 2 details financial progress on the Capital Programme as at 31st August 2017.
12. 91 Salisbury Road Boiler Renewal - The lowest compliant quotation was at a cost of £41k. This cost plus asbestos survey costs, Building Regulations costs and Project Management fees will require an overall budget of £48k. It has been requested that the budget is increased by £3k which will be funded from a revenue contribution from the Youth Offending Services budget.
13. ENABLE Funding - An emergency power was approved to include a new budget of £149k in the 2017/18 Capital Programme, to be funded from a Welsh Government grant. This funding will be used for capital costs in relation to the delivery of adaptions under the Enhanced Adaptions Service, ENABLE - Support for Independent Living.
14. Castleland Renewal Area - An emergency power was approved to vire £65k to the Tackling Poverty scheme. This scheme is underspent by £65k due to contractor costs being lower than anticipated at the outset and provisional sums which were included within the contracts to cover unforeseen works not being required. £43k will be used to cover costs at Main Street as additional properties have been included in the scheme to allow the whole street to be completed and £22k will be used to fund Holton Road Commercial Grants Programme to improve the commercial shop fronts in Holton Road.

Resource Implications (Financial and Employment)

15. As detailed in the body of the report.

Sustainability and Climate Change Implications

16. There are no direct implications arising from this report.

Legal Implications (to Include Human Rights Implications)

17. There are no legal implications.

Crime and Disorder Implications

18. There are no crime and disorder implications.

Equal Opportunities Implications (to include Welsh Language issues)

19. There are no equal opportunity implications.

Corporate/Service Objectives

20. Effective monitoring assists in the provision of accurate and timely information to officers and Members and in particular allows services to better manage their resources.

Policy Framework and Budget

21. Report is in accordance with the Policy Framework and Budget.

Consultation (including Ward Member Consultation)

22. The appropriate Chief Officer has been consulted. This report does not require Ward Member consultation.

Background Papers

None

Contact Officer

Carolyn Michael

Operational Manager - Accountancy

Officers Consulted

Director of Environment and Housing

Responsible Officer:

Miles Punter