To report on the Council’s performance against revenue capital budgets as at 29 February 2008and 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 reported on the Council's performance against revenue and capital budgets up to 29 February 2008, and provided information on the corporate risk register, and on actions taken to address areas of underperformance.  The overall position showed an overspend of just under £600,000 across the Council.  He drew members' attention to the following in particular:

·                     All monies relating to claims through the Bellwin Scheme following the July 2007 floods had now been received.  The Government had announced a review of the Bellwin Scheme. 

·                     In relation to expenditure arising from redundancy costs in schools, the figures had been estimated at the time of writing the report, and the final outcome would be known at the end of March 2008.

Some members commented on the level of long-term borrowing for capital assets.  They expressed concern that this might lead to a situation of ever-increasing levels of borrowing in order to meet service requirements.   The Leader stated that current Government thinking encouraged prudential borrowing as a means for local authorities to deliver capital projects.  In response to a question from a member, the Director of Resources commented that all projects should have a full options appraisal and financial assessment, as recommended by Mr Crookall in his report. 

RESOLVED:   that the report be noted.