The Committee discussed the Second Quarter Finance, Procurement & Performance reports, the Medium Term Financial Plan, and an application to write off non recoverable debt. The committee noted the financial, procurement and performance positions in the second quarter of 2024/25, endorsed the draft Medium Term Financial Plan for 2025/26 to 2028/29, and approved the write-offs set out in a confidential appendix to the meeting pack.

Second Quarter Finance, Procurement & Performance reports

The Committee reviewed the Council's Second Quarter Finance, Procurement & Performance reports, which provide a detailed analysis of the council's financial, procurement, and performance position at the end of September 2024.

Financial Performance

The General Fund is forecast to be overspent by £1,034,350 for the year, with projected overspends in ICT (£221,850), Property services (£207,800), Development services (£184,450), Corporate Finance (£468,750) and Environmental Health (£103,710). Some of these overspends will be mitigated by use of earmarked reserves. After funding and reserves are applied, the deficit is forecast to be £281,890.

Members were concerned about the overspend on property services and questioned the cause of the shortfall in car park income. The overspend is largely due to a shortfall on Car Park income compounded by an increase in transaction costs. This includes £36,000 loss of income during the closure of Silk Street car park during works.

Procurement Activity

The Procurement team have completed 19 procurement exercises this quarter, 8 by Staffordshire Moorlands District Council and 11 jointly with High Peak Borough Council. 95% of the procurement activities undertaken were included in the forward plan.

Members discussed the implications of the Procurement Act 2023. The new Act will simplify the procurement process, make it more transparent, and make it easier for small businesses to win public contracts. It is due to come into effect in February 2025.

Members were particularly interested in increasing the amount of procurement spend in the local area, which is currently at 3.25% of total procurement spend. The council's Procurement Strategy states that they will Support the Local Economy and Business Growth and they will continue to work with our main suppliers to identify local supply chain opportunities .

Performance Position

64% of the council's key performance indicators (KPIs) were on track at the end of September, an improvement on the 48% reported at the same time last year.

Members were concerned about the performance of the Complaints team who are failing to meet the 97% target for responding to complaints within the target timescale. Of the 9 complaints received during Q2 2024/25, 2 received late responses because further investigation took place.

The Committee were also concerned about the performance of the Freedom of Information team who are missing the 90% target for responding to requests within the statutory timeframe. Results continue to be affected by the volume and complexity of cases.

Medium Term Financial Plan (MTFP)

The Committee discussed the council's draft Medium Term Financial Plan, which sets out how they plan to spend public money over the next four years.

The Plan is currently unbalanced, with a cumulative deficit of £2,105,770 projected over the four years. The final budget will not be set until February 2025, and work is continuing to identify savings and efficiencies to close the budget gap.

Savings and Efficiencies

The Council has identified a range of potential savings and efficiencies that they hope will help to close the budget gap. These include:

• An efficiency programme that aims to save £890,000 over the next four years. The programme is focused on five themed areas: Asset Management Plan, Income and Charges, Project Management, Recruitment and Retention, and Council Controlled Companies.
• A transformation programme that aims to modernise the council's services and make them more efficient. The programme includes a number of projects, such as the implementation of a new ICT strategy, the development of a new Access to Services Strategy and an updated Organisational Development Strategy.
• A review of the council's fees and charges. The Council's fees and charges make a significant contribution to the finances, so there is potential to generate more income by increasing charges or by introducing new charges. The council are also considering how they can use charging to influence individual choices and behaviour, and to bring other benefits to local communities.
• A review of the council's assets. The council is looking at ways to make better use of its assets, such as by selling off surplus land and buildings.

Consultation

The council is committed to consulting with residents, businesses, and other stakeholders to help inform the budget setting process and spending priorities. Comments can be submitted via the council website.

Application for Write-Off of Non-Recoverable Debts

The Committee went into a closed session to discuss a confidential report on an application to write-off non-recoverable debts. The debts were written off.