Agenda item

1.       That the Council forecasts a £0.4m overspent revenue position for 2014/15, as set out in Annex 1, paragraph 2 of the submitted report.

2.       That services forecast achieving £69.0m efficiencies and service reductions by year end, as set out in Annex 1, paragraph 54 of the submitted report.

3.       That the Council forecasts investing £207m through its capital programme in 2014/15 as set out in Annex 1, paragraph 58 of the submitted report.

4.       That the quarter end balance sheet as at 30 September 2014 and movements in earmarked reserves and debt outstanding be noted, as set out in Annex 1, paragraphs 61 to 63 of the submitted report.

5.       That services’ management actions to mitigate overspends be noted as set out throughout Annex 1 of the submitted report.

6.       That a virement of £1.1m gross expenditure budget from Human Resources & Organisational Development to Shared Services (£1m) and Finance (£0.1m) to realign budgets and service responsibilities be approved, as set out in Annex 1, paragraphs 33 to 35 of the submitted report.

Reasons for Decision:

This report is presented to comply with the agreed policy 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 budget monitoring report for the mid year point for 2014/15, for the period up to 30 September and focused his introductory comments around the four core elements of the Council’s financial strategy to:

·        Keep any additional call on the council taxpayer to a minimum;

·        Continuously drive the efficiency agenda;

·        Develop a funding strategy to reduce the Council’s reliance on council tax and government grant income; and

·        Continue to maximise our investment in Surrey.

He stated that the forecast revenue position was for an overspend of £400,000 at year end and that he was pleased to report this £2m improvement on the previous month’s forecast.

He also highlighted the recommendation to transfer budgets of £1.1m to reflect the movement of the vast majority of the Pensions Administration team into Shared Services, building the capacity to offer efficient pensions services to the public sector.   The remaining £100,000 transfer brought the pension fund management and commissioning of pensions administration into the same team.

In relation to keeping any additional call on the council taxpayer to a minimum he highlighted:

·      The end of year revenue forecast was for services to overspend by £0.4m.

·      Though services had forecast a small overspend, the Cabinet’s strong commitment to tight financial management, backed up actions of managers across the council would make this the fifth consecutive year the council has a small underspend or a balanced budget.

·      The Chief Executive and Director of Finance had held support sessions with heads of service and concluded the key efficiencies strategies were valid. To keep up progress in the rigour of services’ savings plans, the support sessions would continue. The Chief Executive and Director of Finance would continue to report progress at the council’s regular briefings to all Members.

On Continuously drive the efficiency agenda he stated:

·      At the end of September, services forecast delivering efficiencies of £69m.

·      Of the £69m, nearly 75% had either already been achieved or was on track, about 15% had some issues and less than 10% was considered to be at risk.

With regards to developing a funding strategy to reduce the Council’s reliance on council tax and government grant income, the Leader reported the following:

·      Reducing reliance on government grants and council tax was key to balancing the budgets over the longer term. The Revolving Infrastructure and Investment Fund had already invested over £5m this year and forecasts delivering £0.5m net income.

With regard to continuing to maximise our investment in Surrey he said:

·      The Council’s capital programme not only improved and maintained the Council’s services, it was also a way of investing in Surrey and generating income for the Council.

·      The reprofiled capital programme plans £780m investment for 2014-19, including £200m in 2014/15.   The current forecast was to overspend by £6.5m, including long term investments.

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

RESOLVED:

1.       That the forecasted +£0.4m overspent revenue position for 2014/15 (paragraph 2 of the submitted report) be noted.

2.       That services’ forecast achieving £69.0m efficiencies and service reductions by year end (paragraph 54 of the submitted report) be noted.

3.       That the Council forecasts investing £207m through its capital programme in 2014/15 (paragraph 58 of the submitted report be noted).

4.       The quarter end balance sheet as at 30 September 2014 and movements in earmarked reserves and debt outstanding (paragraphs 61 to 63 of the submitted report) be noted.

5.       Services’ management actions to mitigate overspends (set out throughout the submitted report) be noted.

6.       The virement of £1.1m gross expenditure budget from Human Resources & Organisational Development to Shared Services (£1m) and Finance (£0.1m) to realign budgets and service responsibilities (paragraphs 33 to 35) be approved.

Reasons for Decision:

This report was presented to comply with the agreed policy of providing a monthly budget monitoring report to Cabinet for approval and action as necessary.