To consider the report of the Accountancy Services Manager (enclosed).

This report is due to be considered by Cabinet Executive on 6 November 2023. Members are asked to consider the report in preparation for Scrutiny of the Budget.

Considered - report of the Accountancy Services Manager, presented by the Finance Group Manager.

The Chairman, Cllr. Nick Brown queried the profiled budget for car park income and asked why this figure was reduced.

The Finance Group Manager explained that the forecast budget was reduced to a more realistic level to reflect the reduction of footfall that was experienced since the pandemic.

The Chairman, Cllr. Nick Brown highlighted the risk of planning appeals and asked whether there was a need to review the budget to reflect the current risk.

The Finance Group Manager responded that Planning Appeals are not generally included in the budget due to their unpredictability. However, given the likelihood of an appeal forthcoming against the decision made at a recent Planning Committee, this would be accounted for in the Quarter 3 Budget.

The Vice-Chair, Cllr. Roy Denney asked for general feedback on the performance of Fosse Park given the current climate and reduced footfall mentioned in the report.

The Chief Executive responded that Fosse Park was one of the best performing retail centres in the country during the pandemic and that while the shopping park has not reached pre-Covid levels of growth, it has experienced more growth than several equivalent developments. The Chief Executive stated that Fosse Park continues to attract high numbers of visitors due to the diversity of the site, particularly the nature and leisure offer at Everards Meadows.

Cllr. Luke Cousin asked why there was a shortfall in both Planning and Building Control fee income. Cllr. Cousin asked whether this downturn was related to residents having less disposable income.

The Finance Group Manager responded that the downward trend in Planning fee income began during the pandemic as the Council received fewer large fee applications. The Finance Group Manager explained that the decision by the Department for Levelling Up, Housing and Communities to permit an increase in Planning Fees would help to bring the Council back towards its target, although the income provided would likely remain short of the budgeted target. Regarding the decline in Building Control fee income, the Finance Group Manager stated that he believed this was caused by the general economic situation with fewer residents being able to afford extensions. The Finance Group Manager also pointed out that the Building Control deficit would be shared with BDC’s partners.

Cllr. Luke Cousin asked whether the Council was pricing correctly in terms of Planning and Building Control fees?

The Finance Group Manager responded that the extent to which BDC can increase fees and charges is impacted by market forces. The Finance Group Manager explained that the Council would seek an inflationary increase of fees and charges.

The Chairman, Cllr. Nick Brown asked for the Chief Executive’s comments on the recruitment and retention of staff.

The Chief Executive explained that vacancies are dealt with on an individual basis and reflect each department’s specific demand for staff and ability to deal with staff shortages. The Chief Executive discussed the impact of two senior staff members, the Executive Director and the Business Partnership & Health Improvement Group Manager, due to be leaving BDC in the near future. The Chief Executive advised Members that both would be replaced on a permanent basis, with an interim replacement being sought for the Executive Director. The Chief Executive also informed Members of the difficulties competing with the private sector, particularly in terms of IT recruitment, and the difficulties recruiting temporary staff to departments such as Finance.