Agenda item

Cabinet is asked to note the following.          

1.           Services forecast the 2015/16 revenue budget to overspend by +£1.7m (Annex1, paragraph 1).

2.           Services forecast efficiencies and service reductions for 2015/16 at £67.4m (Annex1, paragraph 24).

3.           Total forecast capital expenditure, including long term investments is £196.2m (Annex1, paragraph 31).

4.           The quarter end positions for: balance sheet, earmarked reserves, debt and treasury management (Annex1, paragraphs 10 to 26).

Cabinet is asked to approve the following.

5.           A new proposal to charge third parties for the use of the council’s intellectual property which runs the on-line Careers Education Information and Guidance, a web based advice and guidance service for young people (Annex1, paragraph 14).

Reasons for Decisions:

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 Board]

The Leader of the Council presented the second budget monitoring report for the 2015/16 financial year. He reflected that the report set out the continuing hard choices the Council faced as service demand grows and funding declines.

He informed Members that the report had a new format of the report that was shorter with comments that focussed on matters that are significant at county council level. He drew attention to the first table that set out the current budget, including changes for carry forwards and other adjustments and stated that the impact of the changes on the overall net budget this year would be met from using £3.6m from the Budget Equalisation Reserve.

He highlighted the Council’s four key drivers to ensure sound governance in managing finances and providing value for money which include:

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

Currently the forecast end of year revenue position was for an overspend of +£1.7m.

The Council’s multi-year approach to financial management aims to smooth resource fluctuations over five years. As part of this, Cabinet approved the use of £3.6m from the Budget Equalisation Reserve to support 2015/16.

2.     Continuously drive the efficiency agenda

That, at the end of May, services forecast delivering efficiencies at their target level of £67.4m. Of this, £26m had either already been implemented or was on track, £19m has some issues, £17m is additional in year or one off savings and £6m is considered to be at risk.

3.     Reduce the Council’s reliance on council tax and government grant income.

That reducing reliance on government grants and council tax was key to balancing budgets over the longer term. The Revolving Infrastructure and Investment Fund has invested £2m so far this year and forecasted investing £25m by the year end.

4.     Continue to maximise our investment in Surrey        

That, the council’s capital programme not only improved and maintained services, it was also a way of investing in Surrey and generating income for the council. The capital programme had planned £696m spend for 2015-20, and forecasts £196m in 2015/16.

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:

That the report be noted, including the following:      

1.           Services forecast the 2015/16 revenue budget to overspend by +£1.7m, as set out in Annex1, paragraph 1 of the submitted report.

2.           Services forecast efficiencies and service reductions for 2015/16 at £67.4m, as set out in Annex1, paragraph 24 of the submitted report.

3.           The total forecast capital expenditure, including long term investments is £196.2m, as set out in Annex1, paragraph 31 of the submitted report.

4.           The quarter end positions for: balance sheet, earmarked reserves, debt and treasury management, as set out in Annex1, paragraphs 10 to 26 of the submitted report.

That the following be approved:

5.           A new proposal to charge third parties for the use of the council’s intellectual property which runs the on-line Careers Education Information and Guidance, a web based advice and guidance service for young people, as detailed in Annex1, paragraph 14 of the submitted report.

Reasons for Decisions:

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.