Families, Children & Wellbeing (FCW)
Revenue Budget Summary
|
Forecast |
|
TBM |
Forecast |
Forecast |
Forecast |
2025/26 |
Net |
Net |
|
Variance |
|
Budget |
Outturn |
Variance |
Variance |
Savings |
Savings |
Savings |
|
Month 7 |
|
Month 9 |
Month 9 |
Month 9 |
Month 9 |
Proposed |
Achieved |
At Risk |
|
£'000 |
Service |
£'000 |
£'000 |
£'000 |
% |
£'000 |
£'000 |
£'000 |
|
425 |
Commissioning & Communities |
18,786 |
18,628 |
(158) |
-0.8% |
783 |
672 |
78 |
|
168 |
Education & Learning |
6,731 |
6,532 |
(199) |
-3.0% |
112 |
27 |
5 |
|
972 |
Family Help & Protection |
52,994 |
53,530 |
536 |
1.0% |
1,563 |
10 |
1,089 |
|
0 |
Public Health |
1,459 |
1,459 |
0 |
0.0% |
1,002 |
1,002 |
0 |
|
1,565 |
Total Families, Children & Wellbeing |
79,970 |
80,149 |
179 |
0.2% |
3,460 |
1,711 |
1,172 |
|
(120) |
Further Financial Recovery Measures (see below) |
- |
0 |
0 |
- |
- |
- |
- |
|
1,445 |
Residual Risk After Financial Recovery Measures |
79,970 |
80,149 |
179 |
0.2% |
3,460 |
1,711 |
1,172 |
Explanation of Key Variances (Note: FTE/WTE = Full/Whole Time Equivalent)
|
Key |
|
|
|
|
Variances |
|
|
|
|
£'000 |
Service Area |
Variance or Financial Recovery Measure Description |
|
|
Commissioning & Communities |
|||
|
196 |
Home to School Transport |
Based on data held on Mobisoft the forecast
overspend for Home to School Transport is £0.196m. This
forecast takes account of the updated current contracted routes as
at September. |
|
|
78 |
Libraries |
The budget shows a net overspend of £0.078m across all cost centres and is mainly linked to additional staffing costs as a result of delay in savings achievement, the regrading of library officers and relief officers from scale 4a to 4b, CCTV costs for Libraries Extra and additional one-off costs following the transfer of customer services desks. |
|
|
(219) |
Community Cohesion |
One-off Public Health contribution of £0.120m plus reduced grant payments to partner organisations and income received relating to previous year of £0.050m. |
|
|
(213) |
Other |
Minor variances. |
|
|
Education & Learning |
|||
|
100 |
Schools PFI |
The Schools’ PFI (Private Finance
Initiative) was set up in 2003 to improve the facilities at four
schools within the city - Dorothy Stringer, COMART (now closed),
Patcham High and Varndean – using private finance to fund the
capital improvements. The scheme runs for 25 years and a Special
Purpose Vehicle (a legal entity created to fulfil specific or
temporary objectives) “Brighton & Hove City Schools
Ltd” was set up as part of it. This is currently owned by
SEMPERIAN. The scheme is funded partly by a DfE grant with schools
paying an annual charge back to the council and partly via an
annual drawdown of earmarked reserves. The annual charge is updated
each March for the RPIX (RPI All Items Excluding Mortgage Interest)
for the 12 months to February. Once the 25-year period is complete
(~ 31st March 2028) the contract with SEMPERIAN ends and the assets
will be transferred back to the council. |
|
|
250 |
School Closure Site Costs |
Site costs of school buildings following school closures |
|
|
(198) |
Council Nurseries and Other Central Early Years Budgets |
Potential underspend of £0.150m in council nurseries due to increased income for free entitlement funding and other underspends of £0.048m linked to central early years budgets |
|
|
(206) |
School Based Counselling |
Use of one-off Public Health funding |
|
|
(145) |
Other |
Other variances |
|
|
Family Help & Protection |
|||
|
1,030 |
Demand-Led - Children's placements |
The overspend is the result of a relatively small number of children with extremely high cost placements due to their complex needs and requirement for specialised care. In addition, the prevailing market conditions have made the current framework contracts unattractive to providers and have resulted in the necessity to make more placements outside of the framework contract at higher rates. A further compounding factor is the ongoing difficulty in recruiting foster carers. The shortage of foster carers makes it problematic to place children in family settings, whether in-house or with external providers, forcing the need for more expensive care options. |
|
|
333 |
Family Support for children with disabilities |
The overspend is due to the known weekly costs for the children receiving support to prevent entry to care. |
|
|
(245) |
Preventive (Section 17) |
Ongoing scrutiny and control of spending to ensure the most efficient and effective use of the Section 17 budget has resulted in an anticipated underspend across all of the pods of £0.239m. |
|
|
(100) |
Use of Public health funding |
Use of Public Health underspend to fund the CiC mental health contract. |
|
|
(304) |
Early help |
Use of one-off Transformation and Young Futures grants plus vacant posts being held pending the outcome of the Families First transformation restructure. |
|
|
(94) |
Fostering & Adoption |
The number of families receiving adoption allowances has reduced during the year and particularly in the last month plus there are increasing vacancies across the service. |
|
|
(84) |
Other |
Minor variances. |
|
Homes & Adult Social Care (HASC)
Revenue Budget Summary
|
Forecast |
|
TBM |
Forecast |
Forecast |
Forecast |
2025/26 |
Net |
Net |
|
Variance |
|
Budget |
Outturn |
Variance |
Variance |
Savings |
Savings |
Savings |
|
Month 7 |
|
Month 9 |
Month 9 |
Month 9 |
Month 9 |
Proposed |
Achieved |
At Risk |
|
£'000 |
Service |
£'000 |
£'000 |
£'000 |
% |
£'000 |
£'000 |
£'000 |
|
4,004 |
Adult Social Care |
106,625 |
110,097 |
3,472 |
3.3% |
6,581 |
3,844 |
2,737 |
|
158 |
Commissioning & Partnerships |
5,530 |
5,772 |
242 |
4.4% |
155 |
155 |
0 |
|
5,238 |
Housing People Services |
8,305 |
13,249 |
4,944 |
59.5% |
2,520 |
1,347 |
1,118 |
|
(9) |
Homes & Investment |
913 |
903 |
(10) |
-1.1% |
0 |
0 |
0 |
|
9,391 |
Total Homes & Adult Social Care |
121,373 |
130,021 |
8,648 |
7.1% |
9,256 |
5,346 |
3,855 |
|
(1,159) |
Further Financial Recovery Measures (see below) |
- |
(55) |
(55) |
- |
- |
- |
- |
|
8,232 |
Residual Risk After Financial Recovery Measures |
121,373 |
129,966 |
8,593 |
7.1% |
9,256 |
5,346 |
3,855 |
Explanation of Key Variances
|
Key |
|
|
|
|
Variances |
|
|
|
|
£'000 |
Service Area |
Variance or Financial Recovery Measure Description |
|
|
Further Directorate Financial Recovery Measures |
|||
|
0 |
Adult Social Care |
The directorate has developed a Financial Recovery Plan to address the above pressures. The total target is £8.860m. £6.613m has been achieved while £2.247m is at risk. The savings include the following: |
|
|
|
|
- Targeted Reviews |
|
|
|
|
- Staffing Vacancies |
|
|
|
|
- Limited fee uplifts |
|
|
|
|
- Review of some in-house services |
|
|
(55) |
Temporary accommodation (TA) |
The service has introduced a Financial
Recovery Plan to manage in-year budget pressures. |
|
|
Adult Social Care |
|||
|
3,519 |
Physical & Sensory Support |
The number of clients for Physical and Sensory
Support started the year at 2,072 has increased to 2,185 at Month
9. (2,175 Month 8) |
|
|
(1,004) |
Assessment & SIT |
Overall underspend relates to temporary vacancies and increased income related to Financial Assessments. |
|
|
87 |
Resource Centres Older People |
The overall overspend relates to reduced client income and a refocus for some beds at Ireland Lodge on reablement. |
|
|
(384) |
In House Community Reablement |
Overall underspend relates to vacancies and delayed recruitment plus a reduction in premises related spend. |
|
|
(545) |
Adult LD Community Care |
The number of clients for Adult LD started the
year at 1,069 and has increased to 1,123 for Month 9. (1,124 Month
8) |
|
|
(17) |
In -House Adults LD Provision |
Original overall overspend related to Agency, Overtime and Sessional workers covering vacancies, sickness and leave particularly Beach House and Beaconsfield Villas. This has been reducing over time due to recruitment and spending controls. |
|
|
(85) |
Learning Disabilities Assessment Teams |
Overall underspend relates to vacances being recruited to. |
|
|
1,718 |
Community Care - Mental Health, & Memory & Cognition |
The number of
clients for Mental Health and Memory and Cognition started the year
at 882 and has risen to 955 at Month 9. (953 at Month 8) |
|
|
128 |
Adult Mental Health Staffing |
Overall overspend relates to the expected SPFT staffing recharges above budget. |
|
|
55 |
Hostel Accommodation |
Overall overspend includes unbudgeted Health and Safety expenditure and Counsel Fees. |
|
|
Commissioning & Partnerships |
|||
|
18 |
Commissioning ASC |
Unfunded posts & unfunded software costs have been partly offset by vacancies. |
|
|
224 |
Contracts |
Overspend includes £0.114m for unfunded rent and management charges for Supported Accommodation and a forecast overspend on the Carers Support budget offset in part by BCF risk share |
|
|
Housing People Services |
|||
|
5,961 |
Temporary accommodation (TA) |
The Temporary Accommodation (TA) budget is
forecast to overspend by £5.961m. |
|
|
(1,008) |
Commissioned Rough Sleeper and Housing related Support Services |
Underspend due to additional funding received and efficiencies within the service. |
|
|
61 |
Homemove |
The overspend is due additional cost and loss of income whilst implementing a new system. |
|
|
(76) |
Housing Options |
The primary reason for the underspend is staff vacancies in the service. |
|
|
6 |
Travellers |
The slight overspend is mainly from higher-than-budgeted security costs, partly offset by efficiencies elsewhere. |
|
|
0 |
Seaside Homes |
This budget is forecast to break-even. |
|
|
Homes & Investment |
|||
|
(10) |
Housing Strategy and Enabling |
Underspend is due mainly to lower than budgeted salary costs |
|
|
0 |
Private Sector Housing |
This budget is forecast to break-even. |
|
City Operations
Revenue Budget Summary
|
Forecast |
|
TBM |
Forecast |
Forecast |
Forecast |
2025/26 |
Net |
Net |
|
Variance |
|
Budget |
Outturn |
Variance |
Variance |
Savings |
Savings |
Savings |
|
Month 7 |
|
Month 9 |
Month 9 |
Month 9 |
Month 9 |
Proposed |
Achieved |
At Risk |
|
£'000 |
Service |
£'000 |
£'000 |
£'000 |
% |
£'000 |
£'000 |
£'000 |
|
(2,271) |
City Infrastructure |
(3,039) |
(5,647) |
(2,608) |
-85.8% |
588 |
74 |
221 |
|
(77) |
Culture & Environment |
8,695 |
8,251 |
(444) |
-5.1% |
388 |
160 |
93 |
|
549 |
Environmental Services |
33,149 |
33,516 |
367 |
1.1% |
303 |
303 |
0 |
|
726 |
Place |
3,159 |
3,598 |
439 |
13.9% |
393 |
94 |
0 |
|
(570) |
Digital Innovation |
8,830 |
8,040 |
(790) |
-8.9% |
110 |
30 |
80 |
|
(1,643) |
Total City Operations |
50,794 |
47,758 |
(3,036) |
-6.0% |
1,782 |
661 |
394 |
|
(150) |
Further Financial Recovery Measures (see below) |
- |
0 |
0 |
- |
- |
- |
- |
|
(1,793) |
Residual Risk After Financial Recovery Measures |
50,794 |
47,758 |
(3,036) |
-6.0% |
1,782 |
661 |
394 |
Explanation of Key Variances
|
Key |
|
|
|
|
Variances |
|
|
|
|
£'000 |
Service Area |
Variance or Financial Recovery Measure Description |
|
|
Further Directorate Financial Recovery Measures |
|||
|
0 |
Commercial Waste |
Reflected in forecast - Marketing revenue generating programmes including Garden Waste and Graffiti removal |
|
|
0 |
Print & Sign |
Reflected in forecast - Recovery of Print & Sign income by advertising the service and encouraging services to make use of the internal offering instead of entering contracts with external bodies. |
|
|
City Infrastructure |
|||
|
(1,417) |
Parking Services |
Parking Services are forecasting a
£0.687m overachievement against the £27.216m net income
budget. The service’s income budget was revised for 2025/26
following pressure funding and an adjustment of income targets. As
a result: |
|
|
37 |
Concessionary Bus Fares |
Pressure as a result of Blue badge Pass renewals. |
|
|
(104) |
Network Management |
Surpluses within Streetlighting of
£0.303m, Traffic Management of £0.141m and Real Time
Bus Information (RTBI) sign maintenance of £0.200m are
offsetting a shortfall of £0.374m in Section 278 development
assessment income. |
|
|
(954) |
Transport Projects and Engineering |
Main surplus is in Public Transport (£0.900m) as a result of the Bus Service Improvement Plan (BSIP), A £0.168m pressure is being reported in Bikeshare due to unsupported borrowing costs, which is offset largely by Coast Protection surplus of £0.212m owing to capital schemes taking pressure off revenue budgets for this year |
|
|
(170) |
Regulatory Services |
Surpluses as a result of staffing vacancies within current structure. Regulatory services is currently going through a restructure. This will be revised once the restructure is filled. |
|
|
Culture & Environment |
|||
|
(264) |
Venues and Events |
Forecast surplus incomes to the Brighton Centre £0.295m. Offset by pressures on income targets for outdoor events of £0.031m. |
|
|
(60) |
Seafront Services |
Surplus Seafront incomes and vacancies held. |
|
|
501 |
Museum and Culture |
Pressure relating to the NJC arrangements with the Royal Pavilion Museums Trust under a contractual obligation. |
|
|
303 |
Bereavement |
Income pressure in Bereavement services mostly related to forecast cremations. |
|
|
(653) |
Sport and Leisure |
Underspends from surplus Leisure Management Fee incomes, switch funding from DRF to borrowing and Golf Course contracts. |
|
|
(271) |
City Parks |
£0.300m pressure relating to tree disease control and base clearance. Mostly offset by vacancies within wider city parks and surpluses from Parks parking. |
|
|
Environmental Services |
|||
|
(1,209) |
Environmental Services |
£0.853m underspend due to vacancy controls within Collections service and Streets Cleansing. £0.358m surpluses in commercial and green waste collections due to an increase in customers. |
|
|
2,166 |
Fleet & Maintenance |
Overspend on Refuse/Recycling collection vehicle hire of £0.696m in addition to ongoing maintenance charges and other vehicle costs in keeping an ageing fleet operational. Pressure of £0.306m for essential temporary health and safety measures at Hollingdean depot to ensure the site can remain operational. Forecasts of essential PPE to ensure service operates showing £0.271m overspend, though it is anticipated this will reduce during the year as the stores and vehicles parts project. Capital financing costs for fleet procurement is £0.440m overspent and is caused by vehicle renewals in recent years and the additional costs from the transition to electric vehicles. An action plan has been developed to take longer term actions to address spend in this area and deliver a more resilient service for residents. |
|
|
(590) |
Strategy and Service Improvement |
Underspends as a result of held vacancies and spending controls. Further underspends of £0.295m resulting from difficult to fill vacancies in maintaining public conveniences. |
|
|
Place |
|||
|
120 |
Director of City Operations |
Overspend relating to prior year corporate savings yet to be allocated |
|
|
140 |
Development Planning |
Underachievement of Building Control incomes due to uncertainty in the development market, whilst Planning application incomes are currently forecast to overachieve budgets. Also, anticipated legal fee and consultant budget overspends relating to “Business As Usual” activities along with estimated costs relating to the claim of legal costs regarding the Gas Works appeal. Biodiversity Net Gain grant award offsetting costs as well as further offsets from staffing underspends from held vacancies and other supplies & services underspends as part of spending controls. |
|
|
87 |
Regeneration |
Black Rock borrowing costs offset by rental incomes from the site. |
|
|
(75) |
Net Zero |
Underspends as a result of vacancies and spending controls. |
|
|
167 |
Architecture & Design |
Reduced level of Architects’ fees. |
|
|
Digital Innovation |
|||
|
(790) |
Digital Innovation |
At Month 9, Digital Innovation are forecasting an underspend of £0.790m which is an increase of £0.100m from Month 8. The service has conducted a further thorough review of vacancies and budgets and savings have been identified by further delays to recruitment. The service has also reduced the forecast for hardware & services spend in line with the spending controls. Savings are also being made on the contracts budgets, in particular, telephony which is funded from capital for the first year so creating an in-year saving. However, the service is also experiencing pressures on some contracts with inflationary increases and changes to licensing models. Vacancies are still having an impact on the service provision, particularly for the Traded Services team who have 5 vacant posts and are struggling to meet existing SLAs. This is causing well-being concerns as well as a risk of having to make refunds to Schools for missed visits. |
|
Central Hub
Revenue Budget Summary
|
Forecast |
|
TBM |
Forecast |
Forecast |
Forecast |
2025/26 |
Net |
Net |
|
Variance |
|
Budget |
Outturn |
Variance |
Variance |
Savings |
Savings |
Savings |
|
Month 7 |
|
Month 9 |
Month 9 |
Month 9 |
Month 9 |
Proposed |
Achieved |
At Risk |
|
£'000 |
Service |
£'000 |
£'000 |
£'000 |
% |
£'000 |
£'000 |
£'000 |
|
(227) |
Cabinet Office |
1,571 |
1,083 |
(488) |
-31.1% |
100 |
0 |
100 |
|
37 |
Corporate Leadership Office |
967 |
1,116 |
149 |
15.4% |
0 |
0 |
0 |
|
1,248 |
Finance & Property |
6,859 |
7,923 |
1,064 |
15.5% |
655 |
0 |
25 |
|
(294) |
Governance & Law |
5,281 |
4,826 |
(455) |
-8.6% |
132 |
0 |
12 |
|
(444) |
People & Innovation |
15,282 |
14,790 |
(492) |
-3.2% |
289 |
0 |
0 |
|
68 |
Contribution to Orbis |
2,924 |
2,992 |
68 |
2.3% |
115 |
0 |
0 |
|
388 |
Total Central Hub |
32,884 |
32,730 |
(154) |
-0.5% |
1,291 |
0 |
137 |
Explanation of Key Variances
|
Key |
|
|
|
|
Variances |
|
|
|
|
£'000 |
Service Area |
Variance or Financial Recovery Measure Description |
|
|
Cabinet Office |
|||
|
(488) |
Cabinet Office |
There is a forecast underspend of £0.105m for subscriptions for this year, income generation in Tourism and Marketing of £0.146m as well as a combination of reduced payroll costs and operational expenditure forecast on goods & services of £0.211m due to spending controls currently in place. |
|
|
Corporate Leadership Office |
|||
|
149 |
CEO |
The overspend is a combination of mandatory training costs and temporary staffing arrangements within Corporate Leadership following council wide restructuring in 2024/25. |
|
|
Finance & Property |
|||
|
(296) |
Finance |
The underspend is a combination of expected staffing savings of £0.148m, Redmond Review audit grant £0.098m and £0.167m one off income from settlement of the class action on truck cartel, offset by overspends in consultants and professional fees. |
|
|
668 |
WRBS |
The service is forecasting a £0.668m overspend at Month 9. The pressure is a combination of re-procurement of HR system, a staffing pressure of £0.560m which includes a forecast agency spend for Council Tax, Housing Benefit and scanning and indexing backlog clearing, a £0.168m postage overspend as well as a decline in income from schools. This is offset by expected contract recovery costs. |
|
|
1,642 |
Estates Management |
Estate Management – Service is forecasting a £1.642m overspend which is a combination of lost rental incomes from the decanting of New England House, void costs including NNDR and fire safety waking watch, offset by redistributed LEP funding received amounting to £0.677m pressure. £0.221m pressure from agricultural estate. £0.098m income pressure on Bartholomew house where rental incomes are not meeting income targets yet, however leasing of 3rd and 4th floors has achieved savings where operating costs are with tenants. £0.087m pressure on Commercial Portfolio from voids and rent-free periods of new tenants. £0.149m pressure at Phoenix house due to voids and rent-free periods. |
|
|
(915) |
Building & Surveying |
The service is forecasting a £0.915m underspend which is mainly caused by reprofiling of some works to capital, savings on planned maintenance and operational costs as well as overachievement in surveyor's income £0.116m. |
|
|
(35) |
Education Property management |
The service is forecasting a £0.035m underspend resulting from small savings and income across the service. |
|
|
Governance & Law |
|||
|
(94) |
Legal Services |
The service is forecasting a £0.094m underspend resulting from a combination of income generation, staffing and other small savings across the service. One-off litigation income of £0.167m which was previously reported under Legal has been transferred and now reported under Finance. |
|
|
(318) |
Elections, Registrars and Local Land Charges (LLC) |
Electoral Services: small £0.002m underspend. LLC: £0.148m overachievement due to delayed transfer of some functions to HMLR. Forecast revised down by £0.002m due to a continued reduction in searches across same period last year. Coroner: £0.028m underspend due to renegotiation of shared service cost apportioning with WSCC in BHCC’s favour and lower than expected recharges due to holding of vacancies in shared service. Mortuary: £0.058m pressure due to necessary staffing regularisation and increasing energy costs. Overspend reduced by expected income uplift from contract renegotiation. Registration Services: £0.198m underspend driven by £0.062m income overachievement and £0.143m staffing underspend. |
|
|
(43) |
Democratic Services |
Democratic services are forecasting a £0.043m underspend at Month 9, which is a combination of small savings across the service but is partially offset with a staffing budget pressure which the service is monitoring. |
|
|
People & Innovation |
|||
|
6 |
Strategic communications |
Strategic communication and engagement (SCE) is declaring a £0.010m overspend resulting from staffing pressure and licensing cost for Hootsuite and Vuelio of £0.041m offset by savings across the service |
|
|
(142) |
Innovation Services |
The Innovation Service is reporting a £0.142m underspend from mainly vacancy savings and pausing all non-statutory improvement work at Month 9. |
|
|
(312) |
Health & Safety, Wellbeing, Facilities & Building Services |
This underspend is a result of mitigations in
the service mainly driven by forecast staffing spend savings from
holding vacancies due to service redesign and income generation
from corporate refuse collection and recycling contract of
£0.120m, corporate premises concierge service underspend of
£0.289m and a further £0.017m in corporate landlord
facilities. This however has been offset by an increase in
utilities with an overspend of £0.202m and facility and
building services. |
|
|
(99) |
HR Policy and Initiatives |
The underspend is a combination of staffing savings and expected income from recruitment team. |
|
|
55 |
Inclusion, Learning & Org Development |
Inclusion, Learning & Org Development. is forecasting an overspend of £0.055m mainly arising from an income accrual £0.063m reversed in the current financial period. |
|
|
Contribution to Orbis |
|||
|
68 |
Orbis Partnership |
The overall partnership budget is forecast to be on target but due to the contribution ratios on different elements this equates to a small overspend of £0.005m for Brighton & Hove. Added to this is a shortfall of £0.063m in the overall contribution budget which results in a total forecast pressure of £0.068m at Month 9. |
|
Centrally-held Budgets
Revenue Budget Summary
|
Forecast |
|
TBM |
Forecast |
Forecast |
Forecast |
2025/26 |
Net |
Net |
|
Variance |
|
Budget |
Outturn |
Variance |
Variance |
Savings |
Savings |
Savings |
|
Month 7 |
|
Month 9 |
Month 9 |
Month 9 |
Month 9 |
Proposed |
Achieved |
At Risk |
|
£'000 |
Service |
£'000 |
£'000 |
£'000 |
% |
£'000 |
£'000 |
£'000 |
|
195 |
Bulk Insurance Premia |
4,348 |
4,543 |
195 |
4.5% |
0 |
0 |
0 |
|
(3,260) |
Capital Financing Costs |
12,579 |
8,846 |
(3,733) |
-29.7% |
0 |
0 |
0 |
|
0 |
Levies & Precepts |
249 |
249 |
0 |
0.0% |
0 |
0 |
0 |
|
0 |
Unallocated Contingency & Risk Provisions |
1,888 |
141 |
(1,747) |
-92.5% |
0 |
0 |
0 |
|
0 |
Unringfenced Grants |
(28,726) |
(29,222) |
(496) |
-1.7% |
0 |
0 |
0 |
|
915 |
Housing Benefit Subsidy |
699 |
6,339 |
5,640 |
806.9% |
0 |
0 |
0 |
|
1,654 |
Other Corporate Items |
(85) |
(665) |
(580) |
-682.4% |
0 |
0 |
0 |
|
(496) |
Total Centrally-held Budgets |
(9,048) |
(9,769) |
(721) |
-8.0% |
0 |
0 |
0 |
Explanation of Key Variances
|
Key |
|
|
|
|
Variances |
|
|
|
|
£'000 |
Service Area |
Variance or Financial Recovery Measure Description |
|
|
Bulk Insurance Premia |
|||
|
195 |
Bulk Insurance Premia |
The forecast for the settlement of insurance claims for the remainder of the year is higher than anticipated for 2025/26 due to a number of large value claims outstanding as at Month 9. |
|
|
Capital Financing Costs |
|||
|
(3,733) |
Financing Costs |
Previous year outturn and subsequent review of the capital programme has resulted in slippage and reprofile of the capital programme has reduced the in-year borrowing need resulting in an underspend in the current financial year. In addition, the council continues to maximise its use of internal reserves to meet is capital financing requirement, which while limiting investment returns, will delay the need to externally borrow during a time of elevated borrowing rates and reduce in year borrowing costs. |
|
|
Unallocated Contingency & Risk Provisions |
|||
|
(1,747) |
Risk Provision |
Release of centrally held risk provision to support in year position. |
|
|
Unringfenced Grants |
|||
|
(496) |
Redistribution of Business Rates levy surplus |
A forecast has been made that £100m for the business rates levy surplus will be distributed to all authorities and the council’s share of that in line with previous years allocations would be £0.496m. Confirmation of the amount to be distributed is expected to be announced alongside the final Local Government Finance Settlement. |
|
|
Housing Benefit Subsidy |
|||
|
5,640 |
Housing Benefit Subsidy |
There is a forecast pressure of £5.640m on Housing Benefit Subsidy, which has increased by £4.725m since Month 7. The initial pressure was based on the mid-year estimate submitted to DWP. Clarification is being sought on Housing Benefit Subsidy regulations to ensure the correct subsidy amount claimed. A prudent provision has been made to reflect the current interpretations whilst clarification is being sought. This has resulted in an additional pressure of £2.280m in respect of 2024/25 and £2.445m in 2025/26, both of which will need to be recognised in 2025/26. |
|
|
Other Corporate Items |
|||
|
803 |
2025/26 Pay Award |
Estimated additional cost of 2025/26 pay award above amount provided for in budget. |
|
|
(289) |
Corporate Pension Costs |
An underspend of £0.177m on the unfunded pension costs budget. Of this, £0.085m relates to an overpayment in respect of 2024/25 and £0.092m is an in year underspend. Over achievement of £0.112m on National Insurance savings on AVC scheme. |
|
|
974 |
Functional Alignment |
At this stage £0.974m of the 2024/25 functional alignment saving is forecast to be at risk. |
|
|
95 |
Other VFM Savings |
Unachieved balance of savings from previous years. |
|
|
71 |
Public Health contribution to General Fund services |
Achievement of these savings is now reflected in FCW forecasts. |
|
|
(1,109) |
Review of Reserves |
Release of unrequired reserves and provisions identified in the December budget report |
|
|
(1,125) |
Repayment of Working Balance |
Delay repayment of working balance due in 2025/26 |
|
Housing Revenue Account (HRA)
Revenue Budget Summary
|
Forecast |
|
TBM |
Forecast |
Forecast |
Forecast |
|
Variance |
|
Budget |
Outturn |
Variance |
Variance |
|
Month 7 |
|
Month 9 |
Month 9 |
Month 9 |
Month 9 |
|
£'000 |
Service |
£'000 |
£'000 |
£'000 |
% |
|
30 |
Repairs & Maintenance |
19,256 |
18,807 |
(449) |
-2.3% |
|
(227) |
Tenancy Services |
16,241 |
16,013 |
(228) |
-1.4% |
|
(149) |
Housing Management & Support |
6,666 |
6,676 |
10 |
0.2% |
|
1,928 |
Housing Investment & Asset Management |
3,371 |
5,445 |
2,074 |
61.5% |
|
(124) |
Housing Strategy & Supply |
2,110 |
1,954 |
(156) |
-7.4% |
|
375 |
Council-owned Temporary Accommodation |
1,071 |
1,344 |
273 |
25.4% |
|
(382) |
Rent & Service Charges |
(76,979) |
(77,421) |
(442) |
-0.6% |
|
1,451 |
Service Area Total |
(28,263) |
(27,182) |
1,081 |
3.8% |
|
0 |
Capital Financing Costs |
11,579 |
11,579 |
(0) |
0.0% |
|
(235) |
Direct Revenue Funding |
16,684 |
16,449 |
(235) |
-1.4% |
|
1,216 |
Total Housing Revenue Account |
0 |
846 |
846 |
0.0% |
Explanation of Key Variances
|
Key |
|
|
|
|
Variances |
|
|
|
|
£'000 |
Subjective Area |
Variance Description |
|
|
Repairs & Maintenance |
|||
|
(1,175) |
Employees |
Increased capitalisation of salary costs, largely in respect of the Electrical Installation Condition Report (EICR) programme, plus forecast underspend against the net staffing budget as a result of vacancies across the service. The underspend equates to approximately 12% of the net salary budget. |
|
|
915 |
Premises |
Good progress continues to be made in clearing the backlog and the latest forecast assumes that this will be largely cleared by the end of the year. There is a forecast overspend against the “business as usual” budget, based on spend to date and the volume of repairs being undertaken. |
|
|
1,816 |
Supplies and Services |
The service continues to experience significant costs arising from disrepair claims. These by their very nature are difficult to forecast and will be closely monitored each month, this assumes that action is taken to manage the claims early in the process, enabling better management of spend. |
|
|
(2,005) |
Contribution from earmarked reserves |
Allocation from earmarked reserves of £1m for disrepair claims as set aside in the 2025/26 budget and £1.005m to be allocated from the repairs backlog reserve to cover the latest estimated costs. |
|
|
Tenancy Services |
|||
|
59 |
Employees |
Minor net variance. |
|
|
(109) |
Premises |
There is a forecast underspend of approximately £0.200m against utility costs, based on information supplied by the Energy and Water team. |
|
|
(215) |
Supplies & Services |
There is a one-off reduction in the planned contribution to the General Needs rent bad debt provision, following confirmation that the Leasehold bad debt provision is no longer required and will be transferred in-year. |
|
|
37 |
Third Party Payments |
Minor net variance. |
|
|
Housing Management & Support |
|||
|
(131) |
Employees |
There is a net underspend forecast against staffing costs, mainly as a result of revised costs compared to budget setting assumptions. |
|
|
111 |
Premises |
Additional part-year insurance costs for LPS blocks excess layer insurance. |
|
|
30 |
Supplies & Services |
Minor net variance. |
|
|
Housing Investment & Asset Management |
|||
|
(147) |
Employees |
There is a forecast underspend against the salaries budget, mainly relating to number of vacancies across the year. |
|
|
423 |
Premises |
Forecast overspend against Compliance servicing and maintenance budgets. |
|
|
2,401 |
Supplies & Services |
Enhanced building safety measures for a few of our blocks, with significant costs arising from a 24-hour security service to help manage items being taken into the building and to support with floor walks and maintaining clear egress and exits to the building. |
|
|
(603) |
Income |
Increased income from leasehold service charges, compared to budget assumptions. |
|
|
Housing Strategy & Supply |
|||
|
(192) |
Employees |
Increased capitalisation of salaries, compared to budget assumptions |
|
|
36 |
Supplies and Services |
Minor net variance. |
|
|
Council-owned Temporary Accommodation |
|||
|
74 |
Employees |
Minor net variance. |
|
|
321 |
Premises |
Council-owned Temporary Accommodation can by its nature be volatile. There is a significant overspend in respect of empty properties and repairs costs, based on spend incurred to date and reflecting additional costs in respect of void costs for Large Panel Systems (LPS) units. |
|
|
(123) |
Supplies and Services |
There is a forecast underspend against the Transfer Incentive Scheme budget |
|
|
Rent & Service Charges |
|||
|
(442) |
Rents & Service Charges |
The income budget is approximately £77m for the financial year and at Month 8 there is a minor over-achievement of £0.443m (equating to 0.6%) based on the first 8 months of data and assumptions made around level of voids and changes in number of properties across the year. |
|
|
Direct Revenue Funding |
|||
|
(235) |
Depreciation |
There is an anticipated underspend against the depreciation budget, based on latest assumptions. |
|
Dedicated Schools Grant (DSG)
Revenue Budget Summary
|
Forecast |
|
TBM |
Forecast |
Forecast |
Forecast |
|
Variance |
|
Budget |
Outturn |
Variance |
Variance |
|
Month 7 |
|
Month 9 |
Month 9 |
Month 9 |
Month 9 |
|
£'000 |
Service |
£'000 |
£'000 |
£'000 |
% |
|
0 |
Individual Schools Budget (ISB) |
143,169 |
143,169 |
0 |
0.0% |
|
(523) |
Early Years Block (excluding delegated to Schools) (This includes Private Voluntary & Independent (PVI) Early Years 3 & 4 year old funding for the free entitlement to early years education) |
39,737 |
39,027 |
(710) |
-1.8% |
|
2,261 |
High Needs Block (excluding delegated to Schools) |
41,300 |
43,666 |
2,366 |
5.7% |
|
45 |
Exceptions and Central Services |
3,663 |
3,715 |
52 |
1.4% |
|
680 |
Grant Income |
(228,549) |
(227,869) |
680 |
0.3% |
|
2,463 |
Total Dedicated Schools Grant (DSG) |
(680) |
1,708 |
2,388 |
351.2% |
Explanation of Key Variances
|
Key |
|
|
|
|
Variances |
|
|
|
|
£'000 |
Service Area |
Variance Description |
|
|
Early Years Block (including delegated to Schools) |
|||
|
(100) |
Central Early Years Block |
Central Early Years Block funding not committed |
|
|
(160) |
Early Years Additional Support Funding |
Over provision of budget for Additional Support Funding for Under 2s |
|
|
(450) |
Early Years Free Entitlement |
Predicted underspends following autumn term early years census |
|
|
High Needs Block (excluding delegated to Schools) |
|||
|
1,069 |
Post-16 High Needs |
There has been a significant increase in the number and cost of high needs learners accessing FE colleges and specialist post-19 provision in the last year and there has also been a movement of high needs learners moving into the city with responsibility for education falling to Brighton and Hove. |
|
|
615 |
High needs pupils in other LA schools |
There is an overspend in the budget relating to high needs pupils being educated in schools in other LAs. This is partly due to the lack of specialist provision within the city and has also been impacted by the closure of Homewood College, which has meant specialist Social Emotional Mental Health placements are now being made in schools/academies in other LAs. |
|
|
883 |
Independent non maintained school agency placements |
The Independent non-maintained school agency placements budget continues to be under pressure due to increasing demand, higher unit costs and a lack of suitable local provision. |
|
|
74 |
Brighton and Hove Special School Placements |
Current placements in the city's special schools for in excess of commissioned numbers. |
|
|
(125) |
Inclusion Support Services |
Expected underspend due to funding contribution to Early Years team from the Early Years Block. |
|
|
(150) |
Other |
Other variances |
|
|
Exceptions and Growth Fund |
|||
|
52 |
Other |
Minor variances |
|
|
Grant Income |
|||
|
680 |
DSG Grant |
2024/25 central DSG overspend held in unusable reserve |
|