To report the financial position for both Revenue and Capital to 30 September 2012.  The Treasury Management position is also included.

The Cabinet Member Corporate Services presented the report of the Head of Corporate Finance and stated that the report forecast the financial position for both revenue and capital to end of September 2012 and gave a mid year assessment of treasury management activity.

The Cabinet Member made the following comments:

·         As at end of September 2012 the overall revenue budget position for 2012/13 showed a £2.4m projected overspend.  This is approximately 1.7% of the council’s £143.4m revenue budget, excluding Dedicated Schools Grant funding.

·         The report includes a mid year treasury management report, which follows best practice in the reporting of information on the handling of investments and borrowing.

·      The 2012/13 budget included £10.8m of savings to meet the reduced funding from central government.  This was in addition to the £10.3m of savings made in 2011/12 both of which are as a result of the government’s national deficit reduction programme.

·      Projections to date have shown an overall reduction in the overspend. This has been achieved through the control on discretionary spend, recovery plan actions and a review of budgets.

·      The position on the capital programme for 2012/13 was a forecast spend at year end of £40.7m.

·      The Leadership team continues to closely monitor the position.

The following comments were made in discussion:

·         Cabinet noted the discretionary spend position for the People’s Services directorate had improved overall since its peak in June 2012.

·         In response to a question regarding risk outlined at paragraph 38 of the report, the Cabinet Member Health and Wellbeing confirmed the forecast did not include the additional activities required resulting from potential safeguarding pressures or the need for development activity in this area.  The director confirmed this would not cause an adverse effect to service delivery.

·         The Cabinet Member Education and Infrastructure referred to changes to the governments’ schools funding formula and stated that current proposals would put Herefordshire in a difficult position in clawing back funding.

·         In response to a question on home care the director advised that all home care was provided by the private and voluntary sector and funding was paid directly to the individual concerned.

·         In response to a question on provision of broadband by BT the Cabinet Member Education and Infrastructure referred Cabinet to their meeting of 11 October, where details of the contract were discussed.

·       In raising concerns over the budget the IOC group leader requested that the original budget predictions were provided with the report in order that comparisons could be made.

·      2012/13 required £10.4m in savings to be made.

·      It was important to maintain the Council’s reserves.

·      In response to concerns over capital project Cabinet was reminded that some schemes were carried over to the following year or pause a project to cover the revenue budget.

·      In response to a question on legal services the Assistant Director reminded Cabinet the budget covered core legal requirements.  The legal department was being restructured with appointments to key posts in the new year and the budget provided would be sufficient.  Any work for  ...  view the full minutes text for item 36