Agenda item

The Committee had before it a report by the Director of Resources which provided an update on the financial position of the Council as at Quarter 3 (31 December 2022) and the full year forecast position for the financial year 2022/23, including:-

·       General Fund and Housing Revenue Account (HRA) and capital accounts; and associated Balance Sheet; and

·       Common Good revenue account and Balance Sheet.

The report recommended:-

that the Committee –

(a)      note the cash position that has been achieved for the General Fund and HRA to the end of Quarter 3 as detailed in Appendix 1;

(b)      note the Common Good financial performance to the end of Quarter 3 as detailed in Appendix 3, specifically the £1.1m reduction in cash balances due to investment volatility;

(c)      note that the General Fund full year forecast position has moved positively since the Quarter 2 report was considered by the Committee as detailed in Appendix 2, and is now expected to show a deficit of £2.1m for 2022/23, and that the Chief Officer – Finance has instructed that budget holders act to delay, stop or reduce expenditure wherever possible to mitigate this deficit; and note that any remaining deficit will be mitigated from the use of earmarked reserves;

(d)      note that the HRA full year forecast position, as detailed in Appendix 2, is on target to achieve the approved budget;

(e)      note that the Council relies on the Integration Joint Board (IJB) achieving a balanced budget, and that the IJB retains reserves to mitigate unplanned additional costs arising during the year;

(f)       note that the forecast for General Fund and Housing capital expenditure is that there will be lower spend than had been budgeted in 2022/23 as described in Appendix 2; and

(g)      note that the Council has introduced new processes in respect of a recruitment freeze, and has recently promoted the Voluntary Severance/ Early Retirement scheme, these actions are designed to assist in the management of the pay bill both this year and going forward;

The Convener, seconded by the Vice Convener moved:-

that the Committee approve the recommendations contained within the report.

Councillor Grant, seconded by Councillor Macdonald, moved as an amendment:-

that the Committee:-

(1)        approve the recommendations in the report; and

(2)        note that the Scottish Government granted local authorities flexibility to make use of capital receipts to help offset the costs associated with Transformation Projects, including qualifying severance and VSER costs, but that this is currently set to expire in March 2023. Agrees that extending this flexibility would help to meet the financial costs of transforming and redesigning our services and instructs the Chief Officer - Finance to write to the Depute First Minister and Cabinet Secretary for Covid Recovery to seek an extension to enable the council to continue to make use of capital receipts towards achieving recommendation (g).

On a division, there voted:- for the motion (8) – the Convener, the Vice Convener and Councillors Cooke, Fairfull, Greig, Hutchison, Nicoll and Radley; for the amendment (5) – Councillors Farquhar, Grant, Houghton, Macdonald and Watson.

The Committee resolved:-

(i)       to approve the motion; and

(ii)       to request that the Chief Officer – Finance circulate further details to members of the Committee in relation to the income figures for car parking charges.