Agenda item

Cabinet Member: Finance & Property

Forward Plan Ref: 2010/028

Contact: Kathy Wilcox, Principal Financial Manager Tel: (01865) 323981

Report by Assistant Chief Executive & Chief Finance Officer (CA 7).

Monthly financial report on revenue and capital spending against budget allocations, including virements between budget heads.

Cabinet considered the financial monitoring report and addenda covering the period to the end of April 2010. The report focused on key risk areas and areas of emerging pressures identified by Directorates, along with plans to manage these. Councillor Liz Brighouse OBE, speaking as a local member expressed the distress she had felt on reading that the scheme for Bayards Hill was held up.

Mrs Fisher whilst recognising the difficult choices ahead and supporting the moratorium spoke in support of the Magdalen Rd and Divinity Rd parking

Schemes.

Responding to a question from Councillor Hudspeth Mrs Fisher commented that she could not speak for the whole area; there was a duty on the Council to consult but that the proposals met the Council’s duties.

The Leader responding to the comments made clarified that the schemes referred to by the speakers had not been cancelled. The schemes being approved today were those that had been prioritised as matters that needed to be taken forward without delay. Other schemes were postponed and would be reviewed.

The Cabinet Member for Finance and Property highlighted areas of concern including pooled budgets, the underspend on school transport, placements and the general fragility of the social & community services budget.

During debate Cabinet Members supported the moratorium on capital projects in the light of the current financial position. They outlined the actions being taken to review and address the concerns raised by Councillor Couchman.

Following discussion around the play pathfinder schemes the Leader proposed an additional recommendation that was agreed.

RESOLVED:                        to:

(a)               note the report and addenda;

(b)               note the changes to 2010/11 grant allocations;

(c)               agree the change to the allocation of Harnessing Technology grant as recommended by the Schools Forum on 19 July 2010;

(d)               approve the virements as set out in Annex 2a;

(e)               approve the updated capital programme as set out in Annex 6.

(f)                 agree the moratorium on capital schemes in 2010/11 that are not yet committed;

(g)               agree to release the capital schemes set out in Annex 8 from the moratorium;

(h)               agree that any further urgent changes to the schemes held in the capital programme moratorium ahead of further review in the Autumn should be delegated to the Chief Executive and Chief Finance Officer after consultation with the Leader of the Council and Cabinet Member for Finance & Property;

(i)                 recommend Council to approve the reductions in revenue grant funded expenditure and related virements as set out in revised Annex 3e;

(j)                  note the increase in VAT with effect from 4 January 2011, and agree that the current scale of charges will not be amended in 2010/11;

(k)               recommend Council to agree the changes to the Specified and Non-Specified Investment instruments section of the Treasury Management Strategy;

(l)                  recommend Council to agree that any further changes required to the Annual Treasury Management Strategy & Annual Investment Strategy can be delegated to the Chief Finance Officer in consultation with the Leader of the Council and Cabinet Member for Finance and property; and

(m)             hold play pathfinder schemes in the moratorium; negotiate with the DfE about the release of schemes where building works have not yet commenced and make representations for other third parties who have made an investment in schemes; if funding is withdrawn, seek to recover as far as possible any money paid out.