Issue - items at meetings - Targeted Budget Management 2011/12 Month 2

Report of the Director of Finance (copy attached).

(1)         That Cabinet notes the provisional outturn position for the General Fund, which is an overspend of £0.941m.

(2)         That Cabinet notes the forecast outturn for the Section 75 Partnerships and Housing Revenue Account (HRA) for 2011/12.

(3)         That the Cabinet note the provisional outturn position on the capital programme.

(4)         That the Cabinet approve the following changes to the capital programme:

i)        The new schemes as set out in Appendices 1 & 2.

ii)      The ICT Fund as shown in Appendix 3.

36.1         The Cabinet considered a report of the Director of Finance concerning the council’s revenue and capital forecast outturn position for 2011/12 as at Month 2.

36.2         Councillor J Kitcat explained that the report was the first to reflect the council’s new structure and contained more detailed information than previous TBM reports. He advised that action plans were in place to tackle the overspend and thanked officers for compiling the report.

36.3         Councillor A Norman highlighted a number of concerns, in particular lost income caused by delays to car park improvements, the cost of allowing travellers to gain access to 19 Acres after the site had been re-bunded, and the level of spending on union duties.

36.4         In response to questions from Councillor A Norman the following comments were made:

§         The deficit in the Collection Fund was due to a higher than anticipated number of exemptions and discounts, and the matter would be investigated.

§         The overspend on the travellers budget was similar to previous years figures and could not be resolved until permanent sites were identified.

§         Work would be undertaken to consider the gap between union duties and the resources available. A written response containing more detailed information on the total budget sea aside for union matters would be provided.

§         Each department had its own communications budget, therefore savings had not shown up in the central Communications Team budget; future plans included reviewing City News.

§         Consideration of the Investment in City Infrastructure report about car park improvements had been deferred in order to address access issues at the Regency Square car park before work commenced. It was anticipated that a report would be considered in October.

§         The decision to reopen the bund at 19 Acres had been made by officers under delegated powers and it was regrettable that ward councillors had not been informed. The work had been carried out at no cost to the council.

§         A written response would be provided concerning savings lost from the decision to reinstate half a refuse collection round, which would have affected only agency staff.

36.5         Councillor Mitchell noted the overspend position and that it had occurred within a short period of time. She questioned why the Cabinet was continuing to implement the previous Administration’s budget rather than resisting the spending cuts as promised prior to the local elections.

36.6         In response to questions from Councillor Mitchell the following comments were made:

§         Councillor Kennedy was leading on the discussions about the progress of the Local Delivery Vehicle for housing management and the latest position was currently being reviewed.

§         With regard to phase three of the Value for Money Programme, a voluntary severance programme had been initiated, which would help meet savings targets without the need for redundancies.

§         The council was confident that it would deliver on the school places detailed within the report and achieve the savings identified within Children’s Services.

§         Any decisions about provision of permanent traveller sites would be programmed into the budget.

§         The Director of Finance acknowledged that the reference to ‘in-year issues’ had not been helpful and explained that the overspend was significantly lower than reported at the same time in previous years. Although new issues had arisen, including some uncertainty around Value for Money savings due to longer lead-in times, savings were on track.

36.7         Councillor J Kitcat stated that Value for Money targets were being carefully monitored along with the risks. He explained that the new Administration had encouraged proposals for in-year savings from all political groups, but few had been received; timing was such that it would not be possible to implement an alternative budget and it was necessary to provide officers with a framework for proceeding with the budget process for 2012-13, which would include participation for opposition Members in the Budget Review Group and Star Chambers.

36.8         The Chair reported that the Secretary of State for Communities and Local Government, Eric Pickles MP, had declined a meeting to discuss the council’s grant settlement and that a meeting with Bob Neill MP, Parliamentary Under Secretary, had been offered.

36.9         RESOLVED – That, having considered the information and the reasons set out in the report, the Cabinet accepted the following recommendations:

(1)         That Cabinet notes the provisional outturn position for the General Fund, which is an overspend of £0.941m.

(2)         That Cabinet notes the forecast outturn for the Section 75 Partnerships and Housing Revenue Account (HRA) for 2011/12.

(3)         That the Cabinet note the provisional outturn position on the capital programme.

(4)         That the Cabinet approve the following changes to the capital programme:

i)        The new schemes as set out in Appendices 1 & 2.

ii)      The ICT Fund as shown in Appendix 3.