Agenda item

Purpose: to report on the financial performance of the Council’s revenue budgets. The report is Quarter One for the 2023/24 financial year and highlights the financial position at each quarter of the financial year and impact on the Council’s General Fund position. This allows the Executive to consider the implications and the actions being taken to mitigate and manage the position.

Resolved that Executive:

·         Note the £6.3m overspend.

·         Note the implementation of measures included in the report around recruitment, staffing and agency.

·         Note the establishment of a Financial Review Panel (FRP) to meet weekly to ensure the spending limits are being adhered to.

·         Request that opportunities for raising in year capital receipts are brought forward to a future Executive meeting.

This decision is eligible to be ‘called-in’.  However, if the decision has not been ‘called-in’ by 5.00pm on 29 September 2023, then it will be implemented.

Councillor Iain Cottingham introduced a report (Agenda Item 7), which forecast a significant overspend across many services, particularly in the People Directorate, in Quarter One. It was noted that this was due to increasing demand on services, continued inflationary cost pressures and additional staffing costs caused by the use of agency workers.

Councillor Lee Dillon proposed the report.

Councillor Jeff Brooks commented that he had been very disappointed in relation to the recruitment procedures and in particular the use of agency workers. Councillor Brooks reported that the Executive had already managed to reduce the number, however had noted that the managed service provider appointed by the Council (Comensura), had not been utilised sufficiently. 

Councillor Tony Vickers commented that there were three causes beyond the Council’s control which had affected budgets in the Place Directorate; notably the fact that the government had promised full recovery for planning fees and failed to deliver; the drop in planning application numbers; and the fact that budget setting in the previous year had set income at the highest range and expenditure at the lowest range.

Councillor Ross Mackinnon referred to Councillor Brooks’ statement that 30% of agency staff had not been recruited through Comensura and queried whether there were legitimate reasons for any of that number.

Councillor Mackinnon reminded Councillor Vickers that the previous administration had left reserves £3.5m higher than had been left in 2019. Councillor Mackinnon suggested that Councillor Vickers should have raised any concerns in relation to planning budgets when the Council budget was set in March 2023.

Councillor Brooks commented that he did not know specifically why the staff had not been recruited via Comensura but suspected that it was because it was convenient.  It was reported that any request for off panel workers now required formal approval from the Financial Review Panel.

Councillor Jo Stewart referred to the eleven members of staff that Councillor Brooks had reported as transferring from agency to permanent and queried what incentives had been offered. Councillor Dillon offered to share the information with Councillor Stewart on a confidential basis.

Councillor David Marsh referred to section 5.52 of the report and queried which assets the Executive were planning to sell. Councillor Marsh further urged the Executive to review the commercial property portfolio with a view to disposing of the assets. Councillor Cottingham confirmed that the commercial property portfolio was being reviewed in its entirety.

Councillor Carolyne Culver referred to section 5.15 of the report and requested further information in relation to the statement that the People Directorate ‘continues to take action to suppress market demand’. Paul Coe explained that the People Directorate was trying to deal with demand with alternative solutions, noting that managing early interventions in a different way could lead to a reduction in long term needs.

Councillor Brooks seconded the recommendations within the report.

 RESOLVED that: Executive

·       Note the £6.3m overspend.

·       Note the implementation of measures included in the report around recruitment, staffing and agency.

·       Note the establishment of a Financial Review Panel (FRP) to meet weekly to ensure the spending limits are being adhered to.

·       Request that opportunities for raising in year capital receipts are brought forward to a future Executive meeting.