To report December’s budget monitoring information and provide an indication of estimated outturn for both revenue and capital to 31 March 2010.  This includes approval of virements set out in Appendix A which are required to fund service deficits. The report also focuses on treasury management activities in the first nine months of 2009/10.

The Cabinet Member Resources introduced the report on December 2009 budget monitoring information which provided an indication of estimated outturn for both revenue and capital to 31 March 2010.  The report additionally outlined approval of virements which were required to fund service deficits and treasury management activities in the fist nine months of 2009/10.

Cabinet was advised that the overall position was that of improvement, though pressures on Directorates were acknowledged.  The authority had budgeted for a reduction in income and there was no evidence of recovery from this position.

Two corrections were highlighted for amendment within the report:

(i)                  para 20 (page 129) should read: ‘Total predicted overspend £124k’ (not £465k)

(ii)                para 72 (page 137) should read: ‘project an underspend of £1.45million’ (not £1.4k)

The Head of Financial Services, advised Cabinet that whilst the report outlined that the overall revenue position for 2009/10 showed a projected overspend of £847k, this had improved since December 2009 due to financial recovery plans taking effect.  There had been significant spend due to the adverse weather conditions which would in part be off set by the underspend projected on the waste disposal budget for 2009/10.  Cabinet was informed that due to the use of both the winter maintenance and social care reserves, approval of virement was sought in order to deliver a balanced budget.

The Director of Resources emphasised that the latest position indicated a balanced budget by the year end due to the delivery of recovery plans and the proposed virements.

Responding to comments the Director confirmed that; in balancing the budget further savings would be identified; an underspend in waste management was partly due to the late starting of a managing agent contract, due to its complex nature; and that capital programmes would be prioritised as part of the MTFS.

The proposed additional £1million which would be provided to Children and Young People’s Directorate was acknowledged.

The Chairman of the Overview and Scrutiny Committee advised Cabinet that the Committee would be considering the Budget Monitoring Report at its March meeting.

RESOLVED

That Cabinet:

(a)   noted the report and its approach to delivering a balanced outturn position at year end; and

(b)   approved the transfer of the Winter Maintenance Reserve to Highways to support expenditure incurred as a result of bad weather.