Thursday August 22nd 2024
A report which is to be presented to the full Midlothian Council meeting on Tuesday says that the council is projected to overspend by £1.8 million in the current financial year.
The main areas of overspend include increased staff costs, insurance claims on potholes, increased cost of pupil transport and the ongoing cost of scaffolding around Midlothian House.
The report says that the overspend on staff costs will be just over £1 million which includes unexpected maternity cover costs in schools of £673,000.
The volume of insurance claims settled, particularly relating to potholes has increased considerably during quarter 1, with a £693,000 increase against budget. The report says the council is looking at ways to increase the number of claims that are refused.
An extra £657,000 is needed due to the volume and cost of school pupil transport.
The ongoing need for scaffolding around Midlothian House is costing an extra £139,000 this year. A report with recommendations on the future use of Midlothian House is scheduled for Council consideration in October
The total overspend of £3.1 million has been offset by underspends elsewhere within the council but still leaves the overall overspend at £1.8 million.
The wider Destination Hillend project approved by Council in December 2022 has been paused pending a review of tendered costs with an updated business case to be developed prior to further involvement of councillors.
The first phase of the project included work on the road infrastructure and installation of an alpine coaster. This phase is almost complete and the coaster is due to open in the coming weeks. Whilst the 24/25 budget was set based on an opening date in July and reflected customer income projections embedded in the approved business case there was an expectation of a high initial level of interest on opening. Once actual customer numbers are available the council will then form a more accurate projection for 2024/25
The report which will be presented to the full Midlothian Council meeting on Tuesday can be read HERE.
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