Issue - meetings

1.           That the forecast revenue budget underspend for 2013/14, as set out in Annex 1, paragraphs 1-5 of the submitted report be noted.

2.           That the forecast ongoing efficiencies and service reductions achieved by year end, as set out in Annex 1, paragraphs 62-65 of the submitted report be noted.

3.           That the forecast capital budget position for 2013/14, as set out in Annex 1, paragraphs 66-71 of the submitted report be noted.

4.           That management actions to mitigate overspends, as set out throughout Annex 1 of the submitted report be noted.

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 5 (August) of the 2013/14 financial year, the first financial report since the summer recess. He stressed the importance of providing Value for Money for Surrey taxpayers.

On the Revenue Budget, he highlighted the following points:

·                Despite growth in demand for council services, the financial position was progressing well through achievement of efficiencies and service reductions.

·                The forecast end of year position for all services was for a small overspend of £0.6m. This is a £1.1m improvement from the last formally reported position as at the end of June. The budget prudently provided £13m risk contingency (set up to mitigate the risk of non delivery of service efficiencies) that has not been used. This means our overall forecast year end position is a £12.4m underspend.

·                The revenue budget requires total efficiencies of £68m. The report showed services were making good progress in delivering these, forecasting £66m for the year. The shortfall of £2.1m was as a result of delays within Children Services and issues over bus contracts.  £11m efficiencies this year have already been achieved and there was increased confidence in many service areas. However, the position includes £7.5m of savings against the Social Capital programme, which are one-off in nature. As the half way point of the year approaches, there is still a long way to go and considerable risks remain.

On the Capital Budget, he highlighted the following points:

·                That the council’s capital programme not only improved and maintained the Council’s service delivery, but was seen as a way of raising additional income.

·                At the start of the year the 2013/14 programme was reviewed and a small number of schemes were reprofiled. The current forecast was for service capital budgets to have a small underspend of £2.4m. This was due to delays with planning issues and archaeological finds. However, to offset this some projects may be brought forward – where possible.

·                In addition, nearly £27m has been invested in projects that would deliver savings and enhance income over the longer term. For this first year alone, income of £2.2m was anticipated from such projects. The Revolving Infrastructure and Investment Fund Cabinet set up at the start of the year would meet capital financing costs.

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 forecast revenue budget underspend for 2013/14, as set out in Annex 1, paragraphs 1-5 of the submitted report be noted.

2.           That the forecast ongoing efficiencies and service reductions achieved by year end, as set out in Annex 1, paragraphs 62 - 65 of the submitted report be noted.

3.           That the forecast capital budget position for 2013/14, as set out in Annex 1, paragraphs 66 - 71 of the submitted report be noted.

4.           That management actions to mitigate overspends, as set out throughout Annex 1 of the submitted  ...  view the full minutes text for item 150