Borough council ends financial year with £796k overspend

Stafford Borough Council has ended the latest financial year with an overspend of almost £800,000 it has been revealed – but it also saw £1.4m more in investment income than expected.

The authority’s final accounts for 2023/24 were presented to Thursday’s cabinet meeting – more than three months after opposition group leader Jeremy Pert asked at a full council meeting when the year-end figures would be available.

At the July cabinet and council meetings, details of a £1.1m budget gap at the end of 2023 were revealed. This included an £826,000 “unfavourable variance” in planning and regeneration and councillors heard that reserve funds were being used to close the financial gap.

The planning and regeneration department has continued to face financial challenges, the outturn report considered at Thursday’s cabinet meeting indicated. There was a £538,000 overspend, with staffing costs being one of the major issues.

The resources portfolio saw an “unfavourable variance” of £499,000. This included additional cost of board and lodgings of almost £220,000.

The report said: “The portfolio outturn for 2023/24 shows an adverse variance of £0.796 million consisting of several variances. Investment income in year has increased by £1.409 million as compared to the revised budget.

“This change has occurred due to the following factors: Interest rates remained higher for longer than anticipated giving an additional gross investment income above budget of £0.771 million. The budget also assumed an amount in relation to interest on balances held by the authority in relation to repayable grants; due to the fall in inflation and spend the budget of £0.580 million was not required.

“The council spent £9.774 million on capital projects in 2023/24, which was £10.885 million less than the budget of £20.659 million. The main reason for the difference in 2023/24 is scheme slippage where the scheme will proceed later than planned and the expenditure will occur in a future year.

“Overall income levels were £0.073 million (£73,000) higher than the revised budget. The major variations relate to Revenue and Benefits (court fees), off street parking and bereavement services.”

Councillor Ralph Cooke, cabinet member for resources, who presented the report to fellow cabinet members on Thursday (November 7), said: “I would say we have a balanced set of final accounts. There are no black holes here at all, so that’s very commendable.”