Issue - meetings

Report of the Cabinet Member Finance and Community Development

RESOLVED THAT:

1. The contents of this report including the key projected variances to the original 2010/11 budget identified at this stage and the potential projected overspend of £801,700 for the financial year 2010/11 be noted.
   
   
2. If, following the more detailed monitoring process currently being undertaken as part of the budget setting process for 2011/12, the potential overspend is confirmed, the Cabinet will take corrective action to ensure that the Council delivers services within the overall net budget for the year.

The Cabinet Member for Finance and Community Development introduced the report which updated Members on the Council’s current financial position for 2010/11 based on the monitoring exercise at the end of August 2010. The report covered the Council’s revenue, capital, treasury management and the housing revenue account. The report identified any known significant variations (minimum £10,000) to the 2010/11 original budget and a position statement on major schemes.

The Cabinet Member highlighted the projected overspend in the order of £800,000. This was a legacy of the recession and was due to the increased cost of concessionary fares, a decrease in income from land charges and car parking and falling interest rates. The Cabinet had been working with the Senior Leadership Team to address this. A recruitment freeze was now in place and a rigorous approach had been adopted for future approval for any recruitment requests and officers had also been instructed to reduce their spend on supplies and services to essentials for the rest of the year. These measures were very important if there were not to be more cuts in services in 2011/12.

RESOLVED THAT:

1. The contents of this report including the key projected variances to the original 2010/11 budget identified at this stage and the potential projected overspend of £801,700 for the financial year 2010/11 be noted.
   
   
2. If, following the more detailed monitoring process currently being undertaken as part of the budget setting process for 2011/12, the potential overspend is confirmed, the Cabinet will take corrective action to ensure that the Council delivers services within the overall net budget for the year.