Decision details

The Cabinet will be asked to consider the projected position of the Council’s revenue and capital budgets for 2012/13 and, if necessary, consider proposals for in-year adjustments aimed at achieving a balanced budget position at the year end

The Cabinet Member for Finance presented a report on the Council’s revenue and capital budget position for the 2012/13 financial year as at 31 July 2012.

The General Fund showed an improved position with a projected year-end under-spend of £0.6m, compared to a £0.9m overspend reported to the last meeting.  The Cabinet Member advised that within the overall under-spend position there was a continued pressure of approximately £600,000 relating to the under-recovery of court cost income within the Revenue and Benefits service provided by Elevate which was being contained by deliberate actions to deliver under-spends in other areas.  Furthermore, a new risk had emerged this month in relation to the Local Authority Error Rate threshold which could have cost implications of approximately £450,000 - £860,000 if the Council was unable to reclaim 100% benefit subsidy from the Department for Work and Pensions.  The Divisional Director of Finance explained the background to the issue and confirmed that although the service was provided under the Elevate joint venture the Council would be fully liable for the loss, albeit that there would be small financial penalties imposed on Elevate for failing to meet contractual requirements.  He also referred to the steps being taken by Elevate management to mitigate the position and the weekly monitoring of the situation by the Council.  In the light of questions raised by Cabinet Members regarding the sharing of risks, the thresholds at which risks are set and performance targets under the Elevate joint venture, officers were asked to prepare an urgent report for consideration by Cabinet Members on the matter.

The Housing Revenue Account (HRA) continued to show a projected break-even position and the Capital Programme was also largely on target.  The Cabinet Member advised that in addition to the ‘star chamber’ meetings that he had held with senior management in respect of General Fund budgets, he had asked for similar arrangements to be made to review other budgets such as the HRA, Public Health Grant and the schools’ Direct Support Grant.

Cabinet noted:

  (i)  The projected outturn position for 2012/13 of the Council’s revenue budget at 30 September 2012, as detailed in paragraphs 2.3 to 2.11 and Appendix A of the report;

  (ii)  The progress against the 2012/13 savings targets at 30 September 2012, as detailed in paragraph 2.12 and Appendix B of the report;

 (iii)  The position for the Housing Revenue Account at 30 September 2012, as detailed in paragraph 2.13 and Appendix C of the report; and

 (iv)  The projected outturn position for 2012/13 of the Council’s capital budget at 30 September 2012, as detailed in paragraph 2.14 and Appendices D and E of the report.