To report to Cabinet on the Council’s performance against revenue and capital budgets as at 30 September 2008 and provide an indication of the estimated outturn for the 2008/09 financial year.

Cabinet considered a report on the Council’s performance against revenue and capital budgets as at 30 September 2008 and provided an indication of the estimated outturn for the 2008/09 financial year. The report also included the numbers and amounts written off for individual debts exceeding £1,000 for the period 1 April to 30 September 2008. 

The Cabinet Member for Resources presented the report and informed Members that it was the second formal budgetary report to Cabinet this year. He emphasised that the projected revenue overspend of £1.292million had reduced by £379,000 which was pleasing but that Cabinet would continue to monitor the situation closely. There would be a need to ensure that spending in the current financial year remained on track particularly given the financial climate. He also referred to keeping money in reserve and to spending such money on major projects and not overspends.

The Head of Financial Services stated that it was important that overspends need to be addressed otherwise this would cause for the Council’s overall position. Recovery plans were however in place and they were being closely monitored. He referred to the Adult Services overspend and informed Cabinet that the overspend included the assumption that the Primary Care Trust would take responsibility for Continuing Health Care packages. In the Children and Young Peoples Directorate there had been a reduction in fuel and transport related costs therefore reducing the overspend. In the Deputy Chief Executive’s Directorate local land charges income had reduced in Legal and Democratic Services creating a financial pressure; this arose because the Private sector now competes for this work.  The Environment and Culture Directorate overspend had risen slightly and given the change further work was necessary on the recovery plan. In the Regeneration Directorate there had been an improvement due to an increase in planning fee income.  The Head of Financial Services drew cabinet’s attention to the financial risk around the ARCH project and a minimum of £123,000 of grant is likely to be clawed back.  More information on this would be available in January 2009.  The general level of investment income had fallen and the Council is now seeing rates of interest rates of 3.25% of its invested balances following the recent rate cut and that it was  likely to fall further which would be a pressure in the 2009/10 budget.

The Independent Group Leader asked for assurance that the frontline Highways Maintenance programme would not be depleted further.

The Cabinet Member Highways and Transportation stated that the highways maintenance programme was on track but could not give an absolute assurance because of the uncertainty in future weather conditions.

In answer to a question regarding grants in respect of the A465, the Head of Financial Services informed Cabinet that the actual amount of grant received for the de-trunking of the A465 was £195,000 for the this year and next years grant would be £335,000 and that the Council would continue to receive that amount in future years.

In answer to a question regarding sundry debtor write-offs, the Director of Resources informed Cabinet that some of the debts could be up to10 years old. These figures were continually monitored.

The Head of Financial Services informed Cabinet that the level of  Capital expenditure to date was 29% of the total budget and this level was similar to the previous year.

RESOLVED:   That the report be noted.