To report the forecast financial position for both revenue and capital to 31 March 2011 and provide an update on Directorates’ recovery plans instigated to address projected overspends.

The report also provides information on treasury management activities in the first four months of 2010/11.

The Cabinet Member Resources presented a report on the forecast financial position for both revenue and capital to 31 March 2011 which also provided an update on Directorates’ recovery plans instigated to address projected overspends.  Additionally, the report provided information on treasury management activities in the first four months of 2010/11.

Cabinet was advised that;

·         the projected overspends were within the Integrated Commissioning Directorate and the Children and Young People Directorate, both of which had recovery plans in place.

·         The general reserves as at 1 April 2010 was £6.4million, having been replenished by £1million as part of the agreed budget setting process.

·         The Council was working within a challenging budgetary environment given the likely reduction in funding to be announced in October’s Comprehensive Spending Review.

·         Due to maximising investment interest and rescheduling loans, it was expected that £800k would be delivered above budget. 

·         Whilst the level of write offs had increased the collection rates remained good.

The Head of Financial Services added that:

·         the projected overspend equated to 1.4% of the budget.

·         All service areas had initiated recovery plans to work towards a balanced budget. 

·         There were no significant changes captured in August as the financial position was static.

In discussion the following points were raised:

• The comprehensive report was welcomed
• That the £540k Park and Ride scheme had been put on hold for the time being, however it remained a future objective for the Council.  A coach park behind the swimming pool in Hereford was still planned to go ahead.

RESOLVED that Cabinet:

(a)   note the report and the forecast deficit position of £1.9 million; and

(b)   note the Chief Executive’s requirement that Directors deliver recovery plans to ensure a balanced revenue budget.