Issue - meetings

The Cabinet Member for Finance, Revenues and Benefits presented a report on the Council’s revenue and capital position for 2010/11 as at the end of July 2010. 

The projected service overspends (not taking account of any in-year savings required) have increased from £2.1m to £3.9m since June 2010, the main reasons being additional projected overspends in the Children’s and Customer Services departments.  In respect of the Customer Services department it has also been necessary to undertake a review of the original 2010/11 savings target of £3.15m to reflect a more deliverable programme of savings.

The Housing Revenue Account (HRA) is projected to incur a year-end deficit of £102,000.  The Acting Corporate Director of Customer Services confirmed that HRA income is currently above forecast levels but that increased staffing costs are responsible for the current projected overspend.  The Capital Programme is projected to be on budget, although a number of changes in the form of transfers, re-profiles and budget adjustments are proposed to better reflect the current position.

Agreed, as a matter of good financial practice, to:

  (i)  Note the current projected outturn position for 2010/11 of the Council’s revenue and capital budget as detailed in Appendices A and C to the report;

  (ii)  Note the position for the HRA as detailed in Appendix B to the report;

  (iii)  Note the actions already in place to control spend and tackle the in-year reduced funding;

  (iv)  Approve the budget changes proposed to the Customer Services’ original savings programme as set out in paragraph 3.1.3 of the report;

  (v)  Approve the capital transfers, re-profiles and budget adjustments as detailed in Appendices D (i), (ii) and (iii) to the report;

  (vi)  Approve the proposed in-year savings detailed in Appendix E to the report;

  (vii)  Authorise the Corporate Directors of Finance and Resources and Customer Services, in consultation with relevant Cabinet Members, to implement any future Customer Services budget transfers to assist in achieving the in-year savings target shortfall of £554,000; and

  (viii)  Authorise the Corporate Director of Finance and Resources, in consultation with relevant Cabinet Members, to allocate and implement the £3m targeted savings within Finance and Resources as they become identified.