Agenda Item No. 5


The Vale of Glamorgan Council


Scrutiny Committee (Housing and Public Protection): 12th March 2014


Joint Report of the Director of Development Services and the Director of Visible Services and Housing


Revenue and Capital Monitoring for the Period 1st April 2013 to 31st January 2014


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 2013 to 31st January 2014 regarding those revenue and capital budgets, which form this Committee’s remit.


It is recommended that :

1.         The position with regard to the 2013/14 Revenue and Capital Budgets are noted.

Reason for the Recommendation

1.         That Scrutiny Committee note the position with regard to the 2013/14 revenue and capital monitoring.


2.         Cabinet on the 18th November 2013 (minute nos. C2076, C2074 and C2073 respectively) approved the amended Revenue, Capital and Housing Revenue Account Budgets for 2013/14.  Reports monitoring expenditure are brought to this Committee on a regular basis.

Relevant Issues and Options



3.         The Revenue Budget and projected outturn for 2013/14 are shown in the table below.  It is currently projected that services under this Committee will underspend at year end by £200k.


Housing & Public Protection   

Revenue Budget


Probable Outturn


(+ ) Favourable

(-) Adverse





Public Sector Housing (HRA)




General Fund Housing





Private Sector Housing/Comm Safety




Public Protection





Youth Offending Service











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 Housing Revenue Account is currently showing a favourable variance of £300k. The main reasons for the favourable variance are as follows: an underspend on premises costs (£80k) such as furniture and fittings at the sheltered schemes and Ty Iolo Hostel, further underspends on the Incentive to Move scheme budgets (£40k) and staff vacancies (£103k) particularly within the Housing Management Team. In addition, the Welfare Advice Team's expenditure to date is less than anticipated (£30k).  There is a further saving of (£15k) on anti-social behaviour support from external bodies.   Other savings of £32k to date over various headings have also contributed to the current underspend.  Based on the current budget position, it is predicted that the HRA will outturn at £339k underspent.  Any underspends in the Housing Revenue Account are ring-fenced, and as such, can be invested into the stock in coming years, improving the position of the HRA Business Plan.

6.         General Fund Housing - The Housing General Fund is currently showing a favourable variance of £282k.  The reason for this favourable variance is mainly due to the reduction in the number of homeless individuals requiring emergency accommodation due to a long term increased focus on prevention by the homeless team. This change of approach has been supported through an expansion of shared accommodation options within the private sector.  Again this success is to be welcomed, but it must be reiterated that the use of the private rented sector has significant risks, particularly as a result of the changes already introduced through Welfare Reform and the challenges posed by the Universal Credit. This could have an adverse effect on the availability of future private rental options if the Homeless client group is considered by Landlords to be a risk to guaranteed income or increased homelessness if landlords choose to only let to those in employment.  The Council has identified Welfare Reform as a significant risk and mitigation measures are already in place. Officers will continue to closely monitor the situation to keep any adverse effect to a minimum.  Due to the possible risks outlined above, it is projected that the budget will outturn at £200k underspent at year end.

7.         Public Protection - There is currently an £87k favourable variance against the profiled budget.  This is primarily due to the staff vacancies within the Division which have been held pending the outcome of the proposed collaboration project with Cardiff and Bridgend Councils. It is anticipated that this underspend could be in the region of £100k by year end, however, any underspend will be set aside to meet future liabilities.

8.         Other services are anticipated to outturn on target by year end. 


9.         Appendix 2 details financial progress on the Capital Programme as at 31st January 2014.  The following changes are reflected in Appendix 2.

10.      WHQS - Rewires - A virement has been requested to transfer £1,240k from WHQS Roof Renewals to fund increased projected expenditure against this scheme.  The amended budget will be £3,461k.

11.      Voids - Non WHQS Works - A virement has been requested to transfer £475k to fund increased projected expenditure against this scheme from the WHQS Non Traditional Properties Budget.  The amended budget will be £825k.

12.      WHQS - Bathrooms - A virement has been requested to transfer £900k to fund increased projected expenditure against this scheme from WHQS Non Traditional properties £525k, WHQS - Roof Renewals £60k and WHQS - Kitchen Replacements £315k.  The amended budget will be £3,902k.

13.      Emergency Contingency Budget - A virement has been requested to transfer £190,225 from the Housing Improvement Programme Emergency Contingency Budget to fund the following schemes :-

·         1-6 Severn Avenue, Barry  £19,800

·         38 Masefield Ave., Penarth £5,200

·         16 Masefield Ave, Penarth  £11,500

·         7 St Augustines Rd., Penarth £10,900

·         30 Glyndwr Ave., St. Athan £14,000

·         9 Channel View   £19,900

·         13 Vachell Court, Llantwit Major  £15,000

·         2 Croft John, Penmark £6,000    

·         Retaining Wall, Village Green, St. Hillary  £30,000

·         16 Cedar Way, Penarth  £7,000

·         29 Hwyel St., Penarth   £23,000  

·         Fairoaks Resurfacing £17,925

·         Westbury Close Resurfacing £3,000

·         Greys Drive Resurfacing £3,000

·         An additional £4,000 for the Llantwit Major Housing Lights Scheme taking the budget to £5,000  

14.      For all schemes where it is evident that the full year's budget will not be spent during the year, the relevant officers are required to provide an explanation for the shortfall and this shall be taken to the earliest available Cabinet.

15.      Appendix 3 provides non-financial information on capital construction schemes with a budget of over £100k.   Where a budget shown in Appendix 2 is more than £100k but is made up of several schemes that individually are less than £100k, the scheme is not included in Appendix 3.

Resource Implications (Financial and Employment)

16.      As detailed in the body of the report.

Sustainability and Climate Change Implications

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

Legal Implications (to Include Human Rights Implications)

18.      There are no legal implications.

Crime and Disorder Implications

19.      There are no crime and disorder implications.

Equal Opportunities Implications (to include Welsh Language issues)

20.      There are no equal opportunity implications.

Corporate/Service Objectives

21.      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

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

Consultation (including Ward Member Consultation)

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

Background Papers



Contact Officer

Carolyn Michael (Principal Accountant) (01446 709778)


Officers Consulted

Director of Development Services

Director of Visible Services and Housing


Responsible Officer:

Rob Thomas

Miles Punter