Issue - meetings

1.       That the projected revenue budget and the Capital programme direction be noted (as set out in Annex 1, Sections A and B of the report submitted).

2.       That the work to agree business rates pooling with Surrey districts and boroughs (as set out in Annex 1, Section A of the report submitted) be noted and endorsed.

3.       That it be agreed that the government grant changes be reflected in directorate budgets (as set out in Annex 1, Section C of the report submitted).

4.       That the further quarter 2 financial information on treasury, debts reserves and balances  and the Chief Financial Officer’s delegated authority to write off £305,203 of debts this quarter (as set out in Annex 1, Section D of the report submitted) be noted.

Reason for Decisions

To comply with the agreed strategy of considering budget monitoring and any necessary actions on a monthly basis.

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

The council had set a very tough 2012/13 budget and five year Medium Term Financial Plan. In doing so it had always recognised that these challenging savings would not be easy to achieve and the council now forecast an overspending on services totalling £0.9m, or 0.05% of the total budget. This forecast was due to emerging activity and volume pressures, particularly within Adult Social Care, Children’s Services and Highways. These pressures were not preventing the council from meeting its financial plan and services continued to apply stringent management action plans to meet their budget targets.

A risk contingency provision of £9m, which the council had established as part of its sound and robust budget planning, would be used in part to off-set the forecasted service overspending. Allowing for the use of the contingency earmarked as a precaution against the costs of increased demand for services, the net forecast underspending was £3.5m, or 0.2% of the total budget.

The council’s Medium Term Financial Plan had set a target of £71.1m of savings and efficiencies for the 2012/13 financial year. A review of all efficiencies had identified a recurrent shortfall of £5.1m. The impact of this shortfall on next year’s budget was being assessed and would be presented to the Cabinet in December. Adjustments would also be made to the capital budgets for future years to reflect the early delivery of some schemes.

Cabinet Members noted the benefits of the council’s multi-year savings programme. Sound financial planning had enabled the council to meet rising demand in areas which were most affected by the recession such as children’s services and adult social care, bring forward highways maintenance schemes and meet the demands of the schools programme.

RESOLVED:

1.       That the projected revenue budget and the Capital programme direction be noted (as set out in Annex 1, Sections A and B of the report submitted).

2.       That the work to agree business rates pooling with Surrey districts and boroughs (as set out in Annex 1, Section A of the report submitted) be noted and endorsed.

3.       That it be agreed that the government grant changes be reflected in directorate budgets (as set out in Annex 1, Section C of the report submitted).

4.       That the further quarter 2 financial information on treasury, debts reserves and balances  and the Chief Financial Officer’s delegated authority to write off £305,203 of debts this quarter (as set out in Annex 1, Section D of the report submitted) be noted.

Reason for Decisions

To comply with the agreed strategy of considering budget monitoring and any necessary actions on a monthly basis.