Issue - meetings

To submit a report by the Director of Function (Resources)/Section 151 Officer.

It was RESOLVED to note the following :-

·       The position set out in respect of the financial performance of the Housing Revenue Account (HRA) for Quarter 3 2023/2024;

·       The forecast outturn for 2023/2024;

·       That the Leader of the Council to write to Scottish Power/National Grid expressing concerns that the delay in responding to works required results in the Authority’s projected being delayed. 

The report of the Director of Function (Resources)/Section 151 Officer setting out the financial performance of the Housing Revenue Account (HRA) Budget for Quarter 3 2023/24 was presented for the Executive’s consideration.

Councillor Robin Williams, Deputy Leader and Portfolio Member for Finance presented the report which set out the financial performance of the Housing Revenue Account (HRA) for the period from 1 April, 2023 to 31 March, 2024 comprising of both revenue and capital expenditure.  He highlighted that the HRA is ring-fenced, and its reserves cannot be used for purposes other than to fund costs relating to the Council’s housing stock including the development of new housing. The report shows the revenue budget has a budget surplus of £8,044k.  The gross capital budget for 2023/2024 is £19,988k.  Grant and other funding budget of £6,890k reduces the net budget to £13.090k.  The combination of both the revenue budget and adjusted capital budget gave a planned budget deficit of £5,046k, which would be funded from the HRA reserve. 

The Director of Function (Resources)/Section 151 Officer reported that prudent investment and high interest rates have resulted in more income generated for the HRA.  He noted that the overall level of bad debt provision is lower than anticipated at the beginning of the year.  He further noted that the Housing Maintenance shows an underspend of £432k at the end of Quarter 3.  The Director of Function (Resources)/Section 151 Officer referred to the capital expenditure and said that it is forecasted an overspend on the capital expenditure as in noted in Appendix B within the report.  He noted that delays are experienced in some projects due to waiting for Scottish Power to upgrade the infrastructure to allow the Authority to place solar panels on properties.  He referred to Appendix C of the report which highlights the new development budget for 2023/2024. 

The Executive welcomed the new housing developments on the Island funded through the HRA account but expressed concerned that the delay in responding by Scottish Power to upgrade the infrastructure is resulting in some projects being delayed.   

It was RESOLVED to note the following :-

·         The position set out in respect of the financial performance of the Housing Revenue Account (HRA) for Quarter 3 2023/2024;

·         The forecast outturn for 2023/2024;

·         That the Leader of the Council to write to Scottish Power/National Grid expressing concerns that the delay in responding to works required results in the Authority’s projected being delayed.