Agenda item

Purpose: To receive the latest period revenue and capital budget reports

Andy Walker introduced the Revenue and Capital Budget report to the Commission. Andy Walker stated that this was the second report as part of the financial reporting cycle for the 2013/14 financial year. The forecast revenue overspend for the 2013/14 financial year was £261k which was a worsened position from Quarter One when an underspend of £51k was reported.

Andy Walker stated that the Public Health service had found a saving of £80,000 within the first year due to using existing support services which helped towards delivering its schemes and which could be recharged to the service.

Councillor Zverko  asked why Appendix 1a on page 71 showed a forecast overspend of £75,500 on Capital Financing and Management. Gabrielle Esplin explained that this was because of a forecast shortfall in interest earned on the Council's investments because of a reduction in the interest rates being paid by the banks and building societies with which the Council deals.  Councillor Zverko also identified an error  in the table in Appendix 1b on page 73.  Gabrielle Esplin  explained that the column showing the budget remaining to be committed was incorrect.  She thanked Councillor Zverko for highlighting the error and advised that the report would be amended accordingly.

Councillor Beck questioned the status of the reintegration service as stated on page 68 of the agenda. Nick Carter advised that the Moorside and Riverside centres aimed to find more suitable premises.

Councillor Beck queried the reference on page 82 of the agenda to a payment being pursued from the Kennet School. Nick Carter advised that this referred to an issue with the school transferring to academy status and the leisure facilities onsite. Nick Carter advised that he could not provide any more information at this stage.

Councillor Roger Hunneman referred to paragraph 2.2 of the report which stated that expenditure across Children’s non-placement budgets and all other Community Services budgets were being deliberately slowed in order to address the projected overspend within the Directorate. He asked what effect this action would have on service users. Andy Walker responded that areas where there was a pressure for services would not be slowed and there would therefore be no detrimental effect to the most vulnerable clients. Andy Walker agreed to confirm the areas affected by the decision and report back to the Commission.

Councillor Beck noted that on page 56 of the agenda there was mention of GT. It was suggested that the GT site referred to the Gypsy & Traveller site at Four Houses Corner.

Councillor Simpson asked for an explanation of the ASC Risk Fund. Andy Walker explained that the fund was created within the service budget as a contingency for identified areas of risk.

Councillor Vickers asked whether the Council had considered the use of consultants to take the Market Street regeneration project forward and whether the expenditure had been committed within the 2013/14 budget. Nick Carter explained that the costs for the Market Street regeneration project had been identified within the 2013/14 budget. The London Road project had not yet been identified within the budget and it was suggested that this would form part of the 2014/15 budget.

Paragraph 3.2 of the report stated that "good progress was being made with schemes to deliver additional primary school places". It was felt that the statement was inconsistent with the fact that funding for the scheme to expand Theale Primary School had not yet been confirmed.  Gabrielle Esplin undertook to check the status of the Theale Primary scheme with Education Services and to report back.

Gabrielle Esplin advised the Commission that approximately £90,000 from the 2012/13 and 2013/14 members’  bids capital budget remained unallocated, but that a further bidding round would take place in January which was expected to allocate some or all of the funds .

Councillor Brian Bedwell thanked the Officers for their report.

Resolved that

• Andy Walker would confirm the areas affected by the decision to slow spending within Children Services and report back to the Commission.
• Gabrielle Esplin would check the status of the Theale Primary scheme with Education Services and to report back to the Commission