Agenda item

1.               The following be noted (as set out in the report submitted):

·        forecast revenue budget underspend for 2013/14 (Annex 1, paragraph 1);

·        forecast ongoing efficiencies & service reductions achieved by year end (Annex 1, paragraph 56);

·        forecast capital budget position for 2013/14 (Annex 1, paragraph 60)

·        management actions to mitigate overspends (throughout Annex 1);

·        quarter end balance sheet as at 30 June 2013 and movements in earmarked reserves and debt outstanding (Annex 1, page 18);

2.               the following adjustments to the revenue budget be approved:

·        virement of £0.4m from Customer & Communities’ Legacy team to Chief Executive’s Office to realign budgets and service responsibilities (Annex 1, paragraph 6);

·        virement of £0.7m from Adult Social Care to Public Health to realign health and well-being budgets (Annex 1, paragraph 7);

·        virement of £0.14m from New Homes Bonus funding to Environment &Infrastructure to support planning applications associated with the schools building programme (Annex 1, paragraph 8);

·        virement of £5.0m from the Severe Weather Reserve to repair damage to roads caused during the last winter (Annex 1, paragraph 9);

3.               the following adjustments to the capital budget be approved:

·        virement of -£0.4m grant reprofiling of Local Sustainable Travel Fund grant in Environment & Infrastructure (Annex 1, paragraph 60);

·        virement of -£0.5m reprofiling of external funding in Environment & Infrastructure (Annex 1, paragraph 60);

·        virement of £0.6m reprofiling of IT Replacement Reserve (Annex 1, paragraph 60);

·        virement of -£0.6m reprofiling of Adult Social Care Infrastructure grant (Annex 1, paragraph 60);

·        virement of the transfer of responsibility for Basingstoke Canal from Business Services (-£0.5m) to Environment & Infrastructure (£0.5m) (Annex 1, paragraph 60); and

·        virement of the addition of £1.8m for Redhill balanced network as a new scheme (Annex 1, paragraph 60).

Reason for decisions

To progress the actions identified as part of the agreed strategy of monthly budget monitoring reporting.

[The decisions on this item can be called in by the Council Overview and Scrutiny Committee]

The Cabinet considered the budget monitoring report for the first quarter of the financial year 2013/14. The forecast end of year position for all services was for a small overspend of £1.7m. However, with the inclusion of the risk contingency, this represented a potential underspend of £11.3m.

A number of years ago the Leader had established the Severe Weather Reserve with £5m. This had been to ensure that the council had sufficient resources to respond to the impact of any very bad weather. The past winter had been especially severe and led to great damage to Surrey roads. This reserve would now be used in the interests of residents to meet the cost of repairing the roads.

The revenue budget required total efficiency savings of £68m in the current financial year. Demand for council services continued to grow and this created additional pressure on the achievement of efficiency targets. Despite these pressures, services were making good progress and had already achieved £11m of savings. Progress would continue to be monitored closely through the year.

The current forecast for the Council’s capital programme was for an underspend of £0.5m on service capital budgets. Nearly £17m had been invested in projects that would deliver savings and enhance income in the longer term. Income of £1.5m was anticipated in the current year from such projects. The capital financing costs would be met from the Revolving Infrastructure and Investment Fund established at the start of the year. The Council was also beating its 30 day target to collect non-care debt. Care debt had risen by 12%, in part due to new income billing and relatively high value retrospective bills. A Rapid Improvement Event would be held to revise systems to address this.

RESOLVED that:

1.               The following be noted (as set out in the report submitted):

·        forecast revenue budget underspend for 2013/14 (Annex 1, paragraph 1);

·        forecast ongoing efficiencies & service reductions achieved by year end (Annex 1, paragraph 56);

·        forecast capital budget position for 2013/14 (Annex 1, paragraph 60)

·        management actions to mitigate overspends (throughout Annex 1);

·        quarter end balance sheet as at 30 June 2013 and movements in earmarked reserves and debt outstanding (Annex 1, page 18);

2.               the following adjustments to the revenue budget be approved:

·        virement of £0.4m from Customer & Communities’ Legacy team to Chief Executive’s Office to realign budgets and service responsibilities (Annex 1, paragraph 6);

·        virement of £0.7m from Adult Social Care to Public Health to realign health and well-being budgets (Annex 1, paragraph 7);

·        virement of £0.14m from New Homes Bonus funding to Environment &Infrastructure to support planning applications associated with the schools building programme (Annex 1, paragraph 8);

·        virement of £5.0m from the Severe Weather Reserve to repair damage to roads caused during the last winter (Annex 1, paragraph 9);

3.               the following adjustments to the capital budget be approved:

·        virement of -£0.4m grant reprofiling of Local Sustainable Travel Fund grant in Environment & Infrastructure (Annex 1, paragraph 60);

·        virement of -£0.5m reprofiling of external funding in Environment & Infrastructure (Annex 1, paragraph 60);

·        virement of £0.6m reprofiling of IT Replacement Reserve (Annex 1, paragraph 60);

·        virement of -£0.6m reprofiling of Adult Social Care Infrastructure grant (Annex 1, paragraph 60);

·        virement of the transfer of responsibility for Basingstoke Canal from Business Services (-£0.5m) to Environment & Infrastructure (£0.5m) (Annex 1, paragraph 60); and

·        virement of the addition of £1.8m for Redhill balanced network as a new scheme (Annex 1, paragraph 60).

Reason for decisions

To progress the actions identified as part of the agreed strategy of monthly budget monitoring reporting.