To report on the Council’s performance against revenue capital budgets as at 31 January 2008 and provide an update of the corporate risk register.  The report provides details of the remedial action being taken to address areas of underperformance.

The Head of Financial Services presented the Budget Monitoring report for 2007/08 and stated that directorates had shown an increase since last budget, but this had been offset by the invest to save scheme.  He added that the overall position showed an overspend of £698,000, which was an improvement on the previous projected overspend of £1.05 million at the end of November.  Referring to the July floods and the insurance claim to government through the Bellwin Scheme Cabinet was advised that government had honoured all the claims made and it was added that rigorous checking had been carried out by the government office prior to making any payment.  Thanks were passed on to all staff involved in work to maximise the claim.

In referring to Adult Services Cabinet was advised that there was a slight increase in the projected outturn and ongoing negotiations were being carried out with Shaw Homes on costs paid.  Cabinet was advised that discussions with HALO on the costs for single status and job evaluation were also ongoing.

In the Children and Young People’s Directorate there was an increase in the projected overspend, however it was estimated that after application of centrally held contingency funds and invest to save funds, the budget would balance.  Cabinet had advised that there had been little change in the projected outturn for Corporate and Customer Services.  There was a further year’s funding of £500k for Customer Services, by which time sufficient resource would need to have been re-allocated from services transferring into the division to make up the short fall.  It was added that the Community Network Upgrade contract with Siemens would produce some savings in the area of line rental and call charges, though these were being quantified, but there would still be an overall overspend on the contract.  Cabinet was referred to the Environment directorate and the Waste Disposal contract between Herefordshire and Worcestershire Councils and informed that this was being monitored carefully with any underspend against the contract has previously been earmarked for reserves to meet future waste management pressures.

In referring to the Capital Programme budget monitoring it was stated that outturn was projected slightly higher with expenditure just under £30 million.

Cabinet was asked about the road maintenance and footways budget allocation with particular reference to the underspend with the budgetary year soon to end.  The Cabinet Member Highways and Transportation advised that all maintenance work had been put back due to the flood alleviation programme.  However the planned maintenance work was now back on target for the January / March programme. 

RESOLVED

THAT:

(a)               Cabinet note the Bellwin settlement and thanked officers and Members for their hard work in achieving the settlement; and

(b)       Financial performance to the end of January 2008 be approved.