The purpose of this report is for Cabinet to consider and approve:

a.             The final outturn position for 2007/08.

b.             Joint Management Team’s proposals for carry forward of unspent budget into 2007/08.

c.             The creation of new reserves and provisions in the 2007/08 accounts.

The Cabinet Member Resources presented the Final Revenue and Capital Outturn 2007/08 report stating overall it represented a good outcome for the authority.  It was added that to date Herefordshire had submitted and received one of the largest claims under the Bellwin scheme for work undertaken during the summer 2007 floods.  Congratulations were expressed to the Benefits team for the amount of benefits subsidy claimed.  In reviewing the financial position the Cabinet Member stated Directors should be congratulated on their overall management of budgets at a difficult time.  Cabinet was referred to page 166 of the agenda to the list of specific reserves and advised that the use of the underspend to set up a specific reserve was requested to help with future accommodation changes.  It was added that it was anticipated that the financial year for 2008/09 would be challenging.  Reference was made to funding in the Environment Directorate and whether reserves were at a level which would support funding for highways.  Cabinet was advised that in previous years the directorate had had some underspend however this year the directorate faced significant challenges meaning the specific reserve could not be increased.  It was added that within Adult Social Care improvements had been as a result of service redesign to rectify the budget position.

The Cabinet’s approval was sought for the use of unspent budget as outlined on page 165, paragraphs 55 and 56 and to the approval of new specific reserves in the accounts as outlined on page 166 of the agenda and detailed in paragraph 59.

RESOLVED that Cabinet approve:

(a)        the final outturn for 2007/08;

(b)               the Joint Management Team’s recommendations for carry forward of unspent budget into 2008/09 (page 165, paras 55 and 56); and the movement to new reserves as outlined in the report (page 166, para 59); and

(c)        the movements to new reserves outlined in the report.