Agenda item

1.      The forecast revenue budget underspend for 2013/14 of £1.4m on services, and adding the unused £13m risk contingency brings this to £14.4m overall, as set out in paragraph 1 of the submitted report, be noted.

2.      The forecast ongoing efficiencies & service reductions achieved by year end, as set out in paragraph 63 of the submitted report, be noted.

3.      The forecast capital budget position for 2013/14, as set out in paragraphs 66-70 of the submitted report, be noted.

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

5.      The quarter end balance sheet, as at 30 September 2013, and movements in earmarked reserves and debt outstanding, as set out in paragraphs 71 to 78 be noted.

6.      That the request to drawdown the unused 2011/12 Whole System funding (£7.5m) to cover slippage on social capital saving, paragraph 13 of the submitted report, be approved.

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 6 (September) of the 2013/14 financial year and focused his introductory comments around the four core elements of the Council’s financial strategy to:

·                Balance the 2013/14 revenue budget;

·                Reduce reliance on council tax and government grants;

·                Continuously drive the efficiency agenda; and

·                Continue to maximise our investment in Surrey.

On the Revenue Budget, he highlighted the following points:

·                The financial position seemed to be progressing well through continued achievement of efficiencies and service reductions and in the face of growing demand for the Councils’ services.

·                The forecast end of year position for all services was for a small underspend of £1.4m. This was a £2.0m improvement on August’s position. The budget prudently provided a £13m risk contingency (to mitigate the risk of non-delivery of service efficiencies) that had not yet been used. This meant that the overall year end forecast was a £14.4m underspend.

On reducing reliance on council tax and government grants, he said that it was key to the Council’s ability to balance the budgets in the longer term. One of the projects helping achieve this was the revolving to generate net income of £0.8m, which would be re-invested into the fund to support further growth.

In relation to the efficiency agenda, he made the following comments:

·                The revenue budget required total efficiencies of over £68.3m (this was in addition to £196m already achieved over the last three years). Services were making good progress in delivering these, with a forecast of £63.6m for the full year.

·                The increase in the forecast underachievement was due to slippage in ASC’s innovative social capital strategy.

·                £18m efficiencies had already been achieved this year and there was an increased confidence in many service areas. At the half way point in the year, there was still a long way to go and considerable risks remain. Members would continue to monitor the achievement of efficiencies closely.

On continuing to maximise investment in Surrey he said that the council’s capital programme not only improved and maintained service delivery, but was also a way of raising additional income.  At the start of the year, the 2013/14 capital programme was reviewed and a small number of schemes were re-profiled and the current forecast was that service capital budgets would underspend by £9.5m. This was due to delays with planning issues and archaeological finds.

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.      The forecast revenue budget underspend for 2013/14 of £1.4m on services, and adding the unused £13m risk contingency brings this to £14.4m overall, as set out in paragraph 1 of the submitted report, be noted.

2.      The forecast ongoing efficiencies & service reductions achieved by year end, as set out in paragraph 63 of the submitted report, be noted.

3.      The forecast capital budget position for 2013/14, as set out in paragraphs 66-70 of the submitted report, be noted.

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

5.      The quarter end balance sheet, as at 30 September 2013, and movements in earmarked reserves and debt outstanding, as set out in paragraphs 71 to 78 be noted.

6.      That the request to drawdown the unused 2011/12 Whole System funding (£7.5m) to cover slippage on social capital saving, paragraph 13 of the submitted report, be approved.

Reasons for Decisions

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