Agenda item

1.      That the forecast revenue budget for 2013/14 to underspend by £2.1m on services, as set out in the Appendix (paragraph 1) of the submitted report, be noted.

2.      That the forecast ongoing efficiencies and service reductions achieved by year end were £61.3m, as set out in the Appendix (paragraph 79) of the submitted report, be noted.

3.      That the forecast capital expenditure and investment of £232.6m against a budget of £224.7m, as set out in the Appendix (paragraphs 83 to 89) of the submitted report be noted.

4.      That the transfer of £2m from increased business rates and government grants to the Budget Equalisation Reserve for supporting future years’ budgets, as set out in the Appendix (paragraph 62 and 67) of the submitted report, be approved.

Reasons for Decisions:

To comply with the agreed strategy of providing a monthly budget monitoring report to Cabinet for approval and action as necessary.

[The decisions on this item can be called in by the Council Overview and Scrutiny Committee]

The Leader of the Council presented the Council’s financial position at the end of period 10 (January) of the 2013/14 financial year and said that the Council’s financial strategy had four key drivers to ensure sound governance in managing finances and providing value for money:

(1)       Keep any additional call on the council taxpayer to a minimum

·      That there had been a £1.1m improvement on the revenue forecast since December and the forecast was for a £2.1m underspending. The improvement would have been greater but for the additional costs faced in tackling the flooding

·      This was the fourth consecutive year that the council had a small underspending. 

(2)       Continuously drive the efficiency agenda

·      At the end of January, services were making good progress in delivering efficiencies and forecast achieving over £61m on-going savings for the full year against a stretch target of £68m savings

·      Underspends had been identified and delivered by services to cover the shortfall this year.

(3)       Develop a funding strategy to reduce the Council’s reliance on council tax and government grant income.

·      Reducing reliance on government grants and council tax was key to the Council’s ability to balance budgets in the longer term. Significant in the Council’s ability to achieve this was the Revolving Infrastructure and Investment Fund. By year end it was forecast that over £59m would have been invested, and net income of £700,000 generated by the end of this year. Rental savings could also total over £1m over the next 10 years.

(4)       Continue to maximise our investment in Surrey   

·      The council’s capital programme not only improved and maintained service delivery, it was also a way of investing in Surrey and of generating income for the council. This year the budget was £224m.

·      Finally, he said that, in addition to the £59m capital investment in assets, it was estimated that £193m would be invested in service delivery, from improving roads to the creation of more school places. However, with any large capital project there would be some delays with planning issues and archaeological finds.

Other Cabinet Members were invited to highlight the key points and issues from their portfolios, as set out in the annex to the report.

Cabinet Members also thanked all staff who had worked tirelessly, and often outside normal working hours, during the recent flooding emergency.

RESOLVED:

1.      That the forecast revenue budget for 2013/14 to underspend by £2.1m on services, as set out in the Appendix (paragraph 1) of the submitted report, be noted.

2.      That the forecast ongoing efficiencies and service reductions achieved by year end were £61.3m, as set out in the Appendix (paragraph 79) of the submitted report, be noted.

3.      That the forecast capital expenditure and investment of £232.6m against a budget of £224.7m, as set out in the Appendix (paragraphs 83 to 89) of the submitted report be noted.

4.      That the transfer of £2m from increased business rates and government grants to the Budget Equalisation Reserve for supporting future years’ budgets, as set out in the Appendix (paragraph 62 and 67) of the submitted report, be approved.

Reasons for Decisions:

To comply with the agreed strategy of providing a monthly budget monitoring report to Cabinet for approval and action as necessary.