Issue - meetings

To consider report 21/11 of the head of finance on the current revenue and capital expenditure position for the first quarter of financial year 2011/12 attached. 

Cabinet considered report 21/11 of the head of finance on the revenue and capital expenditure position for the first quarter of 2011/12.  Cabinet noted that, at the end of the first quarter, services were predicting a year-end revenue overspend of £352,119.  The forecasted capital outturn was as per the budget. 

Councillor Dudley Hoddinott, a non-Cabinet member, addressed the meeting.  He thanked officers for achieving a significant level of savings in 2010/11 but questioned what steps the Cabinet would take to correct the year-end overspend as projected at the end of the first quarter overspend of 2011/12. 

Cabinet noted that it was common for the actual spend at the end of the first quarter to differ from the budget.  The main reasons for this were accounting for accruals (expenditure incurred in the previous but not charged until this year), and budget profiling (more expenditure at the beginning of the year rather than spread evenly throughout the year).  The projected year-end overspend was a result of a loss of income from the government’s delay in introducing legislation to allow councils to charge planning applicants for the full cost of the planning service.  Councils were putting pressure on the government to introduce this legislation quickly.  This council had budgeted to cover the cost of the service for the current year, as the government’s original timetable to introduce the legislation was October.  If the government did not introduce the legislation in this financial year, the council could lose £165K projected income.  Councillors also noted the reduced investment property income due to the loss of a tenant.  Although the property had since been re-let, this left a £39,000 loss of income for the year. 

The accuracy in administering housing benefit claims had improved.  Cabinet welcomed this. 

Cabinet encouraged management team to continue to keep service area budgets under control in preparation for the 2012/13 budget. 

RESOLVED: To note the current budget position and the services’ forecasted outturn.