A ‘volatile and inflationary environment’ is putting South Holland District Council on course for a £353,000 overspend.
A special meeting of the council’s cabinet is being held on Tuesday and a report to members says that the first quarter of this year has already registered a £289,000 overspend.
“The net cost of services is currently forecast to overspend by £289,000. The efficiency savings so far identified are 63 per cent of the target of £887,000. The non-services income and expenditure is forecast to overspend by £64,000. This results in a full year forecast overspend of £353,000 for the general fund,” says the report.
The variances are related to a range of pressures, including people seeking assistance for homelessness.
“The current position is that £556,000 of potential savings have been identified at quarter 1 against the target of £887,000, and further areas have been identified to detailed consideration,” the report adds.
A government grant of £299,000 has helped with the annual Internal Drainage Board bill but a longer-term solution is needed.
The balance in the Housing Revenue Account’s General Reserve is forecasting a decrease of £14.2m to £13.6m.
The report also shows investments held by the council as at June 30.
It shows £5m invested with French financial institutions, £5m in Canada, £4m in Norway and £3m in the National Australia Bank. In total some £37.1m is listed as a cash investment.
A new structure for the council’s cabinet showed a saving of £15,000 this year along with a £60,000 saving due to a budget error.
Staff pressures and absence created an £11,000 overspend in general fund assets while a further £12,000 on backfilling staff vacancies is also noted in the leisure and culture budget.
Salary savings predicted at £36,000 were not achieved within neighbourhoods service area where a £14,000 budget error was also reported.
Members of the cabinet are recommended to approve to full council the changes.
“The rising costs of living continues to be an issue, it is expected to result in a high level of demand in support during the year and potentially budget pressure for 23/24,” the report says.
“The process of identifying the in-year efficiencies is currently underway and will continue throughout the year,” it adds.
“There are emerging revenue pressures coming forward from statutory services these will need to be considered extremely carefully,” the report says.
