Agenda item

That the report be noted, including the following:

1.      That the forecast revenue budget for 2016/17 was a £1.3m underspend, as set out in the Annex, paragraph 1, of the submitted report.

2.      That forecast efficiencies and service reductions for 2016/17 were £83.5m, as set out in the Annex, paragraph 20, of the submitted report.

3.      That the Adult Social Care Service had reviewed the hourly charge for provision of extra care services operated in-house by the Council and updated it to reflect these services’ current operating costs and that the revised hourly charge would be £16.10, as set out in the Annex, paragraph 10, of the submitted report.

4.      That the transfer of £4.8m from the Investment Renewals Reserve to the Budget Equalisation Reserve, as set out in the Annex, paragraph 8, of the submitted report, be approved.

5.      That the following Highways and Transport capital virements be approved:

·      £0.66m from bridge strengthening to highways maintenance, as set out in the Annex, paragraph 28, of the submitted report.

·      £1.03m from Government grants to highways maintenance, as set out in the Annex, paragraph 29, of the submitted report.

·      £1.71m from highways maintenance to strategic economic plan schemes, as set out in the Annex, paragraph 30, 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.

[The decisions on this item can be called in by the Council Overview Board]

The Leader of the Council presented the budget monitoring report for the first two months of the 2016/17 financial year, covering the period up to 31 May 2016. He said that overall, a forecast of £1.3m underspend this year end was expected and that all services forecast a balanced outturn or small underspend but it was still early in the financial year and services may yet encounter budget issues.

However, services were on track to achieve their planned efficiencies. The risk rating of the total of efficiencies they planned to deliver this year had improved slightly from the Medium Term Financial Plan position.  He considered that achieving these savings was important to ensure the Council maintained a balanced and sustainable budget in the future.

On revenue, he said that he wasconfident that Cabinet’s support for managers’ actions would make this the seventh consecutive year that there would be a small underspend or balanced outturn across the Council.

On efficiencies, he informed Members that at the end of May, services forecast delivering all of their £83.5m efficiencies.

Finally, on capital summary, he said that the £638m capital programme for 2016-21, improved and maintained services, invested in Surrey and generated income for the Council and that the Council forecast making £209m capital investment in its services this year. He also considered that reducing reliance on government grants and council tax was key to balancing the budgets over the longer term and that the Revolving Infrastructure and Investment Fund was part of this strategy.

Other Cabinet Members were given the opportunity to highlight key points and issues from their portfolios.

RESOLVED:

That the report be noted, including the following:

1.      That the forecast revenue budget for 2016/17 was a £1.3m underspend, as set out in the Annex, paragraph 1, of the submitted report.

2.      That forecast efficiencies and service reductions for 2016/17 were £83.5m, as set out in the Annex, paragraph 20, of the submitted report.

3.      That the Adult Social Care Service had reviewed the hourly charge for provision of extra care services operated in-house by the Council and updated it to reflect these services’ current operating costs and that the revised hourly charge would be £16.10, as set out in the Annex, paragraph 10, of the submitted report.

4.      That the transfer of £4.8m from the Investment Renewals Reserve to the Budget Equalisation Reserve, as set out in the Annex, paragraph 8, of the submitted report, be approved.

5.      That the following Highways and Transport capital virements be approved:

·      £0.66m from bridge strengthening to highways maintenance, as set out in the Annex, paragraph 28, of the submitted report.

·      £1.03m from Government grants to highways maintenance, as set out in the Annex, paragraph 29, of the submitted report.

·      £1.71m from highways maintenance to strategic economic plan schemes, as set out in the Annex, paragraph 30, 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.