Agenda item

Cabinet Member: Finance

Forward Plan Ref: 2014/176

Contact: Kathy Wilcox, Chief Accountant Tel: (01865) 323981

Report by Chief Finance Officer (CA6).

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

The Cabinet is RECOMMENDED to:

(a)            note the report and annexes;

(b)            approve the return of £0.640m Supplementary Estimate relating to the Severe Weather Recovery Grant as set out in paragraph 64;

(c)            approve the creation of the Government Initiatives Reserve and the  contribution of £0.840m as set out in paragraph 77;

(d)            approve the write off part of the developer contribution as set out in paragraph 69;

(e)            approve the changes to fees and charges set out in Part 4 and Annex 7a and 7b;

(f)             Approve the changes to the Capital Programme set out in Annex 8c;

(g)            approve the release of £3.9m to expand the Broadband programme and to contractually commit to the construction of the revised programme as set out in paragraph 97; and

(h)            Approve allocation of £2.450m Local Growth Fund capital funding as a contribution towards the construction of stages 1 and 2 of the Wantage Eastern Link Road by the developer of the Crab Hill development as set out in paragraphs 98 to 100.

Cabinet had before them a financial report on revenue and capital spending against budget allocations, including virements between budget heads.

Cabinet were advised of an amendment set out in the addenda of the introduction of the pre-application charging for highways advice set out in Part 4 and Annex 7b to 1 July 2015.

Councillor Nick Hards, Shadow Cabinet Member for Finance, welcomed the reduction in the overspend to £1.2m although noted that use of reserves was a one-off measure. He highlighted the measures taken to reduce the deficit and queried how this would impact on services such as Children’s Centres and home to school transport. There would be an on-going issues with services that were not statutory and there would need to be meaningful discussions with the next government. Councillor Hards highlighted a number of individual matters referred to in the report including: the good news on the home support package set out in paragraph 26; the correct use of the parking reserve account; the sensible approach taken to monies received for specific purposes as set out in paragraph 77 and recognition of the one-off set up costs of the Hampshire Partnership.

Councillor Stratford, Cabinet Member for Finance responded to the comments made and recognised the challenge for services and in particular for Children, Education & Families. He had asked that the Council look at the impact of measures taken on the front line services.

Councillor Stratford introduced the contents of the report and advised that it was his expectation that there would be a further reduction in the overspend once the end of year figures were available.

Councillor Judith Heathcoat, Cabinet Member for Adult Social Care paid tribute to the hard work of staff in Social and Community Services.

Following a question from Councillor Carter, Cabinet Member for Business and Customer Services in relation to paragraph 79 on schools revenue balances, Cabinet was advised of the ongoing work looking at the baances held. It was noted that the position was very complex with reserves held for a number of reasons.

RESOLVED:           to:

(a)            note the report and annexes;

(b)            approve the return of £0.640m Supplementary Estimate relating to the Severe Weather Recovery Grant as set out in paragraph 64;

(c)            approve the creation of the Government Initiatives Reserve and the contribution of £0.840m as set out in paragraph 77;

(d)            approve the write off part of the developer contribution as set out in paragraph 69;

(e)            approve the changes to fees and charges set out in Part 4 and Annex 7a and 7b, subject to the introduction of the pre-application charging for highways advice being amended to 1 July 2015;

(f)              Approve the changes to the Capital Programme set out in Annex 8c;

(g)            approve the release of £3.9m to expand the Broadband programme and to contractually commit to the construction of the revised programme as set out in paragraph 97; and

(h)            Approve allocation of £2.450m Local Growth Fund capital funding as a contribution towards the construction of stages 1 and 2 of the Wantage Eastern Link Road by the developer of the Crab Hill development as set out in paragraphs 98 to 100.