Agenda item

Report of the Chamberlain and City Surveyor.

The Board received a report of the Chamberlain and City Surveyor which compared the 2023/24 revenue outturn for the services overseen by the Board with the final budget for the year.

The Markets Board expressed concern regarding the Markets Revenue Outturn 2023/24 report, paragraph 10, in the review of Central Support Service Recharges. The Chamberlain’s Department advised that the increase to the allocation to Markets was solely in respect of DITS and Procurement and represented an increase of approximately £450,000. Members questioned the basis for allocation, which appeared to be disproportionate to the consumption of Procurement and DITS services and asked for further clarification given the indication that Markets central cost allocation was a significant increase on their expectations and limited clarification was provided to Members at the time of this meeting. Specifically, members asked for further information on:

• Detail of the method by which the cost is allocated and how it has changed.
• Detail of those calculations in respect of the Markets Department.

The Chair, in agreement with Members of the Board, tasked the Town Clerk to share a communication to the Finance Committee highlighting their concern.

A further concern was raised regarding the cap on service charge at Smithfield Market and Members were keen to know what shall happen once it had expired. The Markets Director confirmed that there was an initial agreement in 2013 which was later renewed in 2018, along with lease renewals, and an agreement (given capital works outstanding) to cap service charge and maintain rental charge at the same level. However, this was not subject to indexation. The cap on service charge was expected to expire at the end of 2028 (end of lease).

The Central Support Recharges mentioned in the report caused some concern with Members highlighting the potential impact of an overspend on the current financial year. Officers confirmed that the local risk overspend had been carried over by the City Surveyor but that the City Surveyor’s department were meeting a certain element of the local risk overspend with Markets being allocated £55,000 of the £315,000 overspend.

Resolved, that – the report and its contents be noted, and that this minute taken from this meeting to be shared with the Finance Committee ahead of their meeting dated 23 July 2024.