Issue - meetings

Purpose of Report

To present to Members the first quarter’s (ending 30 September 2024) performance for the Revenues and Benefits Shared Service for 2024/25, as detailed at Appendix 1 to the report.

Decision

That the actual position at Quarter 2 as detailed within the report be noted.

Alternation Options Considered and Rejected

None.

Reason for Decision

The forecast outturn for 2024/25 predicted there would be an overspend against the approved budget of £29,390, as set out in Appendix 2.

The current Medium Term Financial Strategy (MTFS) assumptions reflected a pay award of 3% in 2024/25, however the nationally agreed pay award was in excess of this, and whilst the offer had since been accepted by the Trade Unions it was not paid until November 2024, as such an estimate of the impact had been calculated at £41,180, split between each authority as follows; City of Lincoln £21,640 and North Kesteven £19,540

The approved budget for 2024/25 was agreed by the Shared Revenues and Benefits Joint Committee on 22 February 2024, which set a budget of £3,075,650 for the service.

At Quarter 1 the budget was increased to reflect New Burdens grants totalling £27,480, with no further changes at quarter two.

Financial performance as at the second quarter of 2024/25 as detailed in Appendix 1 to this report resulted in an overspend against the approved budget of £1,837, including the nationally agreed pay award.

The main forecast year-end variations against the approved budget for 2024/25 were noted within the table at paragraph 4.3 of the officer’s report.

Purpose of Report

To provide the Shared Revenues and Benefits Joint Committee with the first quarter’s (ending 30 June 2024) performance for the Revenues and Benefits Shared Service for 2024/25, as detailed at Appendix 1 to the report.

Decision

That the actual position at Quarter 1 as detailed within the report be noted.

Alternation Options Considered and Rejected

None.

Reason for Decision

The forecast overturn for 2024/25 predicted there would be an overspend against the approved budget of £84,580.

The current MTFS assumptions reflected a pay award of 3% in 2024/25, however given the latest nationally proposed pay award was in excess of this, an estimate of the impact had been calculated at £41,180, split between each authority as follows; City of Lincoln £21,640 and North Kesteven £19,540. As this offer was yet to be accepted by the Unions, it was still subject to change, but was included in the forecast above.

The approved budget for 2024/25 was agreed by the Shared Revenues and Benefits Joint Committee on 22 February 2024, which set a budget of £3,075,650 for the service.

At Quarter 1 the budget was increased to reflect New Burdens grants totalling £27,480, giving a revised budget of £3,103,130.

Financial performance for the first quarter of 2024/25 as detailed at Appendix 1 of the officer’s report resulted in an overspend against the approved budget of £6,882, including the nationally proposed pay award.

The forecast outturn for 2024/25 predicted that there would be an overspend against the approved budget of £84,580, as detailed at Appendix 2 of the officer’s report (including the nationally proposed pay award). It should be noted that at the end of quarter 2 postage for Revenues Local Taxation was to be reviewed, as there was potential for a reduction/underspend in this area which would significantly reduce the projected overall overspend.

The main forecast year-end variations against the approved budget for 2024/25 were noted within the table at paragraph 4.3 of the officer’s report.

It should be noted that through Household Support Fund wave 5 (HSF5) 2024/25, the following internal administrative costs to the Revenues and Benefits Shared Service had been claimed for, to be paid by Lincolnshire County Council (with national funding for HSF5 coming from Department for Work and Pensions); City of Lincoln £12,618, North Kesteven £8,675. These amounts would however not come into the Revenues and Benefits shared service budget and would stay in the individual local authorities’ budgets.