ITEM CA5 CABINET – 19 MAY 2007 REVENUE BUDGET 2007/08 Report by Head of Finance & Procurement Introduction 1. On 13 February 2007 the Council agreed a revenue budget for 2007/08, plus a Medium Term Financial Plan (MTFP) and a Capital Programme for 2007/08 and the succeeding years. 2. Several factors, as set out below, make it necessary to amend the agreed budget for some Services and Directorates for 2007/08. None of the changes affect the Budget Requirement, the changes represent a different allocation between Directorates and Services or a change in the gross expenditure and income from that agreed in February. As these changes also have an impact on the proposed Directorate budgets they also alter the allocations within the MTFP. This report sets out these changes. 3. The following annexes accompany the report:
Reasons for Changes to Budget Allocations 4. The report to Cabinet on 21 November 2006 referred to the changes in senior management portfolios effective from 1 January 2007 for management purposes and 1 April 2007 for financial reporting purposes. The change in Directorate responsibility for the Translation and Interpretation Service from the old Resources Directorate to Social & Community Services was not reflected in the revenue budget agreed by Council in February. In addition, the presentation of the budget relating to the new Corporate Core was not reflected in the revenue budget agreed by Council in February. 5. The report to Cabinet on 16 January 2007 set out a specific grants annex detailing anticipated grants totalling £419.5m in 2007/08. These estimates were included in the revenue budget agreed in February. Since then, confirmation has been received which has increased the expected specific grants in 2007/08 by £13.6m to £433.1m. Of this increase, the most significant is in Children, Young People and Families where confirmed grant allocations for the Dedicated Schools Grant, Standards Fund, Learning & Skills Council and Connexions have resulted in an additional £12.3m income (and an additional £12.3m of related expenditure). A schedule setting out the confirmed allocations for 2007/08 and a comparison to the position included in the budget agreed in February is set out in Annex 1. 6. The table below sets out the total changes to the budget at Directorate level, an amended MTFP reflecting these changes is set out in Annex 2, with a schedule of changes at Service level detailed in Annex 3. Annex 4 sets out the amended detailed revenue budget for 2007/08.
RECOMMENDATIONS 7. The Cabinet is RECOMMENDED to RECOMMEND Council to approve the changes to the agreed budget for 2007/08, the amended detailed budget for 2007/08, and the amended Medium Term Financial Plan 2007/08 – 2011/12. SUE SCANE Background Papers: Nil. Contact Officer: Lorna Baxter, Strategic Financial Planning Manager, Tel (01865) 816 087. May 2007
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