Stafford Borough Council’s £1.1m budget deficit will be offset by reserves, ensuring a balanced position after overspending in key areas.
The figures presented to cabinet members at a recent meeting covered the period up to December 31 2023. A report on the authority’s position at the end of the 2023/24 financial year is due to be presented at a later date.
The main financial challenges faced were in planning and regeneration, where there was a £826,000 “unfavourable variance,” and the environment, where there were reductions in waste recycling credits and income. The authority also faced an increase in spending on temporary accommodation for homeless people, as well as bed and breakfast costs of £225,000. This was partially offset by increased housing benefit worth £113,000 recovered on temporary accommodation.
Councillor Ralph Cooke, cabinet member for finance, said:
“The year-end outturn position is being prepared. The monitoring position at 31st December 2023 shows an adverse variance against budget of approximately £1.1m.
“The variance comprises increases in costs such as energy, reduced income, fees and charges, and is partially offset by reduced spend in other areas and additional income from some fees and charges. Members will see 74% of the adverse variance falls within the economic development and planning portfolio.
“The majority of the additional costs relate to staffing. I would like to reassure the cabinet that the overspend will be financed from reserves to ensure that the council maintains a balanced position.
“The finance system challenges have been well documented. The Section 151 officer has advised more regular reporting will be presented to members so there can be greater oversight in this area while spending is brought under control.
“With regard to budget savings, a review was undertaken in 2023/24 of all the savings which had been approved in previous budgets. Of the originally approved savings, £437,000 were achieved in the year.
“The budgeted-for savings for the year 2024/25 have been reprofiled. The main change to note in that is the slipping of the shared service saving of £400,000 into future years.”
Councillor Ant Reid, cabinet member for economic development and planning, explained the reasons for the spending level in his portfolio. He said:
“We identified the need to tackle an historic backlog of planning applications as a priority when we came into the administration last year.
“We have been successful in reducing the backlog we inherited by more than half. There were nearly 1,000 applications at the beginning of the year, now there are 442.
“We have had to spend to achieve this reduction. The service has struggled to recruit to vacancies due to the wider national shortage of experienced planners.
“It has been necessary to use agency staff and external consultants to undertake the work and they are expensive. However the service has recently been very successful in recruiting new staff and this will help to reduce the cost in the future.
“We will also be commissioning an independent review of the service, which will inform the transformation work needed to make it more efficient.”
