To provide Cabinet with an updated position on the projected outturn for 2014/15 and to approve the centralisation of certain budgets via a budget virement to improve budgetary control.

Cabinet received a report setting out the forecast outturn position based on information as at the end of May 2014, and proposals for a number of budget virements to support centralisation of corporate budgets. It was noted that delivery of a balanced budget was projected.

The Chief Financial Officer, Peter Robinson, drew attention to two significant budget pressures which had arisen since the budget period being reported: £400,000 to support additional in year grass cuttings to be funded from the revenue contingency; and £2m to address the need for temporary accommodation at Colwall Church of England Primary School pending the outcome of works to investigate damp issues at the school to be funded from within existing repair and maintenance and capital and revenue contingencies. Mr Robinson confirmed that he remained confident in the budget forecast for a balanced budget, even should there be winter pressures. All sources of funding were being pursued.

Following issues raised by members in attendance:

• Assurance was sought that other schools premises were not likely to require additional emergency significant expenditure. The Chief Financial Officer acknowledged that the damp issues had been known for some time but had significantly worsened following the exceptional spring rains resulting in the need for some urgent response. The Cabinet Member Young People and Children’s Wellbeing advised that existing conditions surveys for schools were in the process of being updated in line with the activity planned in the Corporate Plan.
• The Cabinet Member Health & Wellbeing clarified the mitigations put in place to address adult social care savings risks.
• The Director Economy, Communities and Corporate provided clarification regarding the Yazor Brook flood relief scheme costs and confirmed that some of the additional planning income (a positive indicator of economic improvement) would be reinvested in the service.
• The Leader provided assurance that the Colwall community was, and would continue  to be engaged in discussions about the future of the school.
• Assurance was provided that provision had been made for legal costs; the Assistant Director Governance confirmed that any judicial reviews were managed to minimise costs.

RESOLVED THAT:

(a)  Cabinet notes the council is projected to spend within its budget for this financial year;

(b)  Cabinet notes the capital and treasury projected outturns; and

(c)  Cabinet agrees the virement of 14/15 budgets, including £7m of budgets from services to centralised area to improve budgetary control and improve value for money