Agenda item

 

(1)       The report set out the provisional Revenue & Capital Budget Outturn for 2007-8.  It detailed where Revenue projects had been rescheduled and/or were committed and where there was under or overspending.  Details for the proposals for the use of the part of the Revenue Budget under spending were provided which reflected the projects where there was already a commitment of spending in 2008-09. 

 

(2)       The report also included details of:-

 

(a)     the re-phasing of the projects funded from the Performance Reward Grant;

(b)     Final Monitoring of Key Activities for 2007-08;

(c)     the year end prudential indicators and impact on reserves; and

(d)     the report included details of Capital Budget Outcomes and Achievements in recent years.

 

(3)       Mr Chard congratulated Members and officers for achieving a £7.889m provisional outturn against portfolio budgets and noted £4.984m increase in school reserves.

 

(4)       Cabinet noted that the pressure on Asylum was now being shown as breakeven, pending the outcome of two Special Circumstances bids for 2007/08.

 

(5)       Mr Badman expressed the view that the increase in school reserves was not specifically a Kent issue but was being replicated elsewhere nationwide.  He added that having looked at the formula and the reasons why an underspend was occurring he could not find an explanation.  Mr Badman then said that he had commissioned some work to explore with staff why these underspends may be arising and to look at the Direct Schools Grant formula as one of the funding elements.

 

(6)               Mr Carter said that with rising fuel costs and the impact of these increases on County Council services it would be prudent to take this into account when recommending the apportionment of the £5m underspend to the July meeting of the Cabinet.

 

(7)               Mr Ferrin spoke of the pressures on his portfolio including inflationary pressures, interest rates etc.  These pressures had already had a significant impact on a whole range of raw materials.  He added that analysts were finding it difficult to predict the National Inflation Rate and he urged Cabinet to bear this in mind as the County Council move towards agreeing a new three year settlement with the Government in 2009.

 

(8)               The Chief Executive said that together with Mr Chard and Ms McMullan a comprehensive paper would be prepared for Cabinet which would be shared with the Informal Member Group Budgetary Issues.

 

(9)               Mr Carter also said that it would be useful to have a report at the September meeting of Cabinet on how working in partnership with District Councils and other public bodies that the Local Area Agreement 1 had been a success. 

 

(10)          Cabinet agreed to:-

 

(a)     note the provisional outturn position for 2007-08;

 

(b)     agree the requests for roll forward of part of the 2007-08 revenue underspending into 2008-09 as detailed in Appendix 1 to the report to fund existing commitments;

 

(c)     note that the remaining underspend will be allocated at the July meeting of Cabinet following a review of the expected impact of the current economic conditions upon Kent County Council’s services in 2008-09;

 

(d)     note the re-phasing of the projects funding from the Performance Reward Grant as summarised in Appendix 2;

 

(e)     note that the final monitoring of the key activity indicators for 2007-08 as detailed on Appendix 3;

 

(f)      note the final monitoring of the potential indicators for 2007-08 as detailed in Appendix 4;

 

(g)     note the impact of the 2007-08 provisional revenue budget outturn on reserves;

 

(h)     note the capital budget outcomes and achievements in recent years as detailed in Appendix 5;

 

(i)      note that the 2008-09 Capital Programme will be adjusted to reflect the re-phasing and other variances of the 2007-08 Capital Programme;

 

(j)      note that contrary to the school’s previous forecasts, the school’s revenue and capital reserves have increased by some £22m;

 

(k)     agree that a report on the impact of the current economic conditions be prepared for a future meeting of the Cabinet and shared with the Informal Member Group Budgetary Issues; and

 

(l)      a report on the success of Local Area Agreement 1 be prepared for the September meeting of Cabinet.

 

 

 

 

 

 

 

 

 

 

 

 

(4)       Members of the Cabinet commented

 

 

 

 

 

 

 

 

 

 

 

(5)       Cabinet agreed to:-

 

(a)                                                provision outturn position for 2007-08;

(b)       agree the …………………….. roll forward part for 2007-08 revenue under spending into 2008-09 as detailed in Appendix 1 to the report to fund existing commitments;

(c)        note that the remaining under spending will be allocated at the July meeting of Cabinet following a review of the expected impact of the current economic conditions upon Kent County Council’s services in 2008-09;

(d)       note the re-phasing of the projects funding from the Performance Reward Grant as summarised in Appendix 2;

(e)       note that the final monitoring of the key activity indicators for 2007-08 as detailed on Appendix 3;

(f)         note the final monitoring of the potential indicators for 2007-08 as detailed in Appendix 4;

(g)       note the impact of the 2007-08 provision Revenue Budget Outturn and Reserves;

(h)        note the Capital Budget Outturns and Achievements in recent years;

(i)         note the 2008-09 Capital Programme will be adjusted to reflect the re-phasing and other variances of the 2007-08 Capital Programme; and

(j)         note that contrary to the school’s previous forecast, the school’s Revenue and Capital Reserves have increased by some £22m.