To consider the Budget Monitoring Report for Quarter 3 (to include Revenue Budget and Capital Budget monitoring together with financial and delivery details of the Capital Programme) and make recommendations to the Cabinet.

The Cabinet Member for Housing and Finance, Councillor Tyerman, outlined the submitted Budget Monitoring report for 2024/2025 which set out the quarter 3 position in respect of the Council’s Revenue and Capital Budgets.  Cabinet Members and Directors also attended the meeting and responded to questions as well as Councillor Tyerman.

The Board asked questions in relation to paragraph 4.8 showed an overspend of £175k on budgets for disabilities – overnight short breaks, what was the reason for overspend in this area; what was driving the overspend in Legal Services; was there a specific area driving Children’s Section 17 spend; paragraph 4.23 showed an overspend of £380k in relation to shortfalls for Development Control, planning applications and land charges income as well as an overspend of £135k in Building Control, what was the reason for the reduced levels of fees coming in; paragraph 4.22 showed an overspend of £220k within the Waste Disposal Budget which referred to disposal volumes, what was driving the increase; Torre Abbey was facing budgetary pressures, was it covering the costs for the pitch and putt and when was Torre Abbey expected to start to break even; paragraph 4.24 showed a £275k underspend in Concessionary fares, what action was being taken to encourage greater use of buses; paragraph 5.1 does not refer to a percentage against the target, how it sat against the target and how it compared to previous years, what were the rates; Paignton Library Heat Decarbonisation was benefiting from Public Sector Decarbonisation Funding and Climate Initiatives Funding which was one off funding, how was this sustainable; what was the current position regarding Edginswell Railway Station; Edginswell Business Park had funding for enabling works, was the Council actively marketing the two business plots; what was the reason for £0 identified for investment in car parks; what progress had been made for the two solar farms; what was the reason for no investment in sports facilities within the Capital Programme; what was the position in implementing the current Playing Pitch Strategy; what was the reason for the delay for the Capital Coastal Defences and Flooding Schemes; there was an underspend in the school capital programme for repairs, could more detail be provided on this and was the Council at risk from any Private Finance Initiative (PFI) Funding (a written response would be provided); why was temporary accommodation showing as a closed project; green waste bins had £409k in the budget that was not expected to be spent during 2024/2025 was the Council no longer providing green waste bins (a written response would be provided).

In response to questions around Legal Services, Members were advised that there had been staffing pressures in Legal Services for a number of years due to pressures in the market, with costs increasing significantly for locum and full time members of staff, which was more than the average staff rises.  The Council had been able to fill some vacant posts, through use of market supplements, but there was still a backlog of work which had resulted in some agency staff being retained.  The demand for Legal support across the Council remained high due to regeneration and project work, contracts as well as Children’s and Adult Services.  Members were informed that this had been recognised in the 2025/2026 Budget proposals and agreed that the Board would continue to closely monitor this budget area. 

The Board was advised that the Children’s Section 17 temporary accommodation had been used where there was a shortage of other suitable placements.  There had been an increase in short breaks for children with Special Educational Needs and Disabilities (SEND) and the number of referrals for children with disabilities.  This was also used when a family had deemed themselves intentionally homeless.

Members were informed that the fall in Planning income was due to several factors, including a reduction in demand and number of applications coming through the system.  The anticipated income levels had been raised in previous years but had not been realised partly due to the economic climate.  This had been recognised in the 2025/2026 Budget proposals which would include a £200k adjustment in the target.

Members noted that the Council was reviewing the financial viability of Torre Abbey and Cockington Court, with challenges around income generation year on year.  This would involve putting on more events to help them become more financially sustainable.  The cost for maintenance of the pitch and putt was being taken by SWISCo as part of their cyclical fee and proposals were in development for future use of the site which would be considered as part of the long-term financial sustainability model for Torre Abbey.  The Board would be monitoring the progress of Torre Abbey as part of its ongoing Work Programme.

In response to questions around waste, Members were advised that the market price for recycling and the volumes for recycling and residual waste fluctuated each month.  The changes in the budget were a combination of the amount going into residual waste and the value of the end product for recycled waste.

The Board noted that the collection fund was currently at around 96% and that as in previous years there was a contingency fund.  Members requested an update on the forecasted year end collection rates for Council Tax and Business Rates.

It was noted that the Council was looking at improved signage and other actions to encourage greater usage of buses which linked to the Bus Service Improvement Plan, Enhanced Bus Partnership and Devon and Torbay Combined County Authority as well as working with colleagues from Devon County Council.  The challenge was that funding to support bus infrastructure was not reoccurring and therefore there was a need to avoid creating new routes which would not have ongoing funding.  The Cabinet Member for Pride in Place, Transport and Parking would be writing to Group Leaders to find out the best way to engage with all Councillors on this matter.

The Board noted that the Paignton Library Decarbonisation Project was fully funded.  There had been a slight delay due to issues with the substation and also to ensure it fitted with the wider regeneration of the area.

Members received an update on the Edginswell Railway Station, this included ongoing discussions with the Government and local Member of Parliament and work to ensure that the Planning permission stayed live.  It was a priority scheme for development but required additional £7 to £10m funding from the Government in order to progress and the Council was waiting for the next round of funding to open up to apply for this funding. 

The Board was updated on the current interest for the sites at Edginswell Business Park.  Members acknowledged the importance of letting employment land due to the limited availability of suitable land across Torbay.  It was requested that Ward Councillors be kept up to date on this work.

Members noted that there were no proposals in the Capital Plan for investment in car parks.  It was acknowledged that there was a large backlog of repairs and maintenance across the whole of the Council’s estate including the car parks.

The Board received an update on the ongoing negotiations regarding the solar farms at Nightingale and Brokenbury.

In response to questions around capital investment for sport, Members were advised that focus had been given to the review of play parks.  Previously some sports clubs had been given long leases to help them secure investment.  It was noted that the Playing Pitch Strategy and Sports Strategies were due to be reviewed in 2025/2026.

It was noted that the delays for the Coastal Defences and Flood Defences were as a result of waiting for confirmation of funding and actual costs of the work.  The Council also did not want to start the work in the Summer period and was working with the contractors on the timings for the project, excepting that work would continue into next Summer.

The Board was advised that the temporary accommodation project was closed as this was expenditure for buying new temporary accommodation properties which had been completed with a residual amount left unspent.

Members noted that the school capital programme was ring fenced and any underspend would be rolled forward for use for other school projects.  The figures in the report included work to fund additional places in Paignton as well as replacing temporary and out of date accommodation at St Cuthbert Mayne.  The Council only had one Private Finance Initiative (PFI) which was the Spires and Homelands and a condition survey was currently being undertaken as the PFI was coming to an end.  It was believed that the buildings were in good condition and any issues would be picked up through the condition survey.

Members requested future reports include the following:

·                     headings on each page of tables to make them easier to follow;

·                     the description relating to the Waste Disposal budget to be expanded to make it clearer to understand what was covered e.g. recycling and residual waste; and

·                     a column for the capital projects start date to give an indication of the speed to deliver the project.

Resolved (unanimously):

1.         that the Overview and Scrutiny Board notes the Council’s forecasted Revenue Outturn position and mitigating action identified in the submitted report;

2.         that the Overview and Scrutiny Board notes the updates to the Capital Investment Plan and the revised budget for 2024/25;

3.         that the Overview and Scrutiny Board monitors progress of Legal Services Staffing and what the Council has to do to stop relying on locums and know how many vacancies there are and how many agency workers; and

4.         to bring an update on capital investment to implement the Playing Pitch Strategy and Sports Strategy to a future meeting of the Board.