Issue - meetings

1.      That the projected revenue budget underspend (Annex 1 – Section A of the submitted report) and the capital programme direction (Section B of the submitted report) be noted.

2.      That government grant changes be reflected in directorate budgets (Section C of the submitted report).

3.      That the use of the unused contingency for the Olympic Games be approved, to respond to the winter damage to roads.

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 Cabinet received an update on the year-end revenue and capital budget monitoring projections as at the end of February 2013.

The Leader of the Council highlighted the following points:

Revenue – That the council set this year’s budget on the basis of rising demand for its services and the need to make significant reductions in its’ spending. He was pleased that the County Council had successfully risen to these challenges and was expected to finish the year with a small net underspending of £3.5m, or 0.2% of the budget.

It also said that this achievement was due to the Council’s relentless focus on getting the most out of every pound it spent. As well as the excellent procurement this also included staffing spend where expenditure had been reduced through improved management of sickness and by reviewing the need to fill vacancies as they arise.

Managers were no longer spending budgets just because of an artificial deadline of the end of March. Sometimes there were schemes and projects that would straddle the end of the financial year and managers had identified £5.5m of projects and schemes that would not complete before this year end cut off so the Cabinet would then review these as a part of the final accounts and agree if funding continued in the next year.

Capital – The council’s capital programme not only improved and maintained our service delivery, but provided a welcome boost to the local economy in these times. It was therefore important that the aims of the capital budget were achieved, and where some schemes were delayed, others were brought forward. This had been done and the Council was on track to fully spend its’ capital budget.

He also said that, as a part of the investment in the local economy, this council had joined with Woking Borough Council in an innovative project to develop the town centre and that the council would also be looking to bring forward other projects that would provide a presence in other town centres from which services may be provided.

Finally, he considered that this year, the focus on the capital budget had demonstrated the council’s commitment to the local economy and working with partners to achieve the best outcomes for Surrey residents and businesses.

Members noted that the last sentence in paragraph 96, Annex1, Section A should read:

‘Additional commitments are planned but it is unlikely that all will be completed by 31 March 2013 due to the lead time for procurement.’

Other Cabinet Members made the following points:

·         Delight that this was the third year running that the County Council had come in just below its estimated budget.

·         Good management of the capital budget this year.

·         Thanks to staff, and in particular finance staff for controlling a tough budget.

·         Praise for close working relationships between services, such as Property and School Places Commissioning and also the partnership working with Districts and Boroughs.

·         Congratulating the local committees for their partnership working with district and boroughs in  ...  view the full minutes text for item 53