Agenda item

RESOLVED:

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

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

Reason for Decisions

To comply with the agreed strategy of providing a monthly budget monitoring report to cabinet for approval and action as necessary.

[The decision in 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 January 2013.

The Leader of the Council highlighted the following points:

Revenue – a multi-year approach had been taken to managing the council’s finances and in setting the budget for next year where £11m of this year’s budget would be used to support 2013/14. In keeping with this approach, he did not want officers to be spending budget just to ensure that it was spent by the artificial deadline of 31 March. 

He also said that Managers had identified £5.5m of projects and schemes that would not complete before the year-end cut off and these would be reviewed as a part of the final accounts report to Cabinet.

He considered that the success of the Olympic cycle races staged in Surrey last summer  was due to the detailed planning that went into this event, but even with all that planning, the event may have not all gone to plan which was why £1m  had been set aside to cover any additional expenditure. As this was not used, it was proposed to use this over the next few months as a response to the damage this severe winter has caused to Surrey’s roads.

This managed approach to our finances had led to a forecast where all but £2.3m of this year’s revenue budget would be used, which was 99.9% and was a tremendous achievement when there were so many pressures on services.

Capital – The council’s capital programme not only improved and maintained the Council’s service delivery, but provided a welcome boost to the local economy in these times. It is therefore important that the aims of the capital budget were achieved, and where some schemes are delayed, others were brought forward.

This had happened and to the end of January, the Council had spent £140m and were well on track to spend the remaining £10m in the final two months of the year.

The Woking town centre project was cited as an example of supporting the local economy and working with our partners.

Other Cabinet Members made the following points:

·         The huge savings made in the previous two years, particularly in Adult Social Care and Children’s Services.

·         Some concern that future savings targets may not be achieved as demand continues to increase, thereby putting pressures on service budgets.

·         Investment was critical to look at new ways of working.

·         School Improvement Plans needed to be in place for those schools not ‘good’ or ‘outstanding’.

·         The excellent partnership working last summer during the Olympics.

·         All members were urged to spend their Member Allocations before the end of the financial year and before the commencement of purdah. This deadline also applied to the Community Pride Fund.

·         Endorsement of the Environment and Infrastructure Directorate – in particular investment in the roads for the Olympic Cycle race and managing the bus contracts and the concessionary bus pass scheme.

·         The carbon reduction targets had been achieved.

·         Management of the Treasury Management Strategy had improved significantly.

RESOLVED:

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

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

Reason for Decisions

To comply with the agreed strategy of providing a monthly budget monitoring report to Cabinet for approval and action as necessary.