Contact: Bevis Ingram, ext 7508

1. Summary

1.1 The following decision is sought:

To approve the creation of a budget totalling £456,000 by virement within the overall Recreation and Heritage revenue cash limit for 2002/03 to take forward projects in support of the strategic objectives approved for the services.

2. Reason

2.1 Formal approval of redirection of budget to fund policy initiatives outlined by the Director of Recreation and Heritage in the report `Objectives and Management' approved on 30 May 2002.

3. Other options considered and rejected

3.1 Given the decisions already made this is really `not applicable', technically an alternative would be to `not develop the Recreation and Heritage services' but (also technically) this option has already been considered and rejected.

4. Conflicts of interest declared by the decision maker or a member or officer consulted

4.1 Not applicable

5. Dispensation granted by the Standards Committee

5.1 Not applicable.

6. Reason for the matter being dealt with if urgent

6.1 Not applicable.

Approved by: (signature) Date: (date of decision)

Councillor J Waddington

Contact: Bevis Ingram, ext 7508

1. Introduction

1.1 This report presents the current position on the Recreation and Heritage budget for 2002/03, and recommends transfers within the budget to fund policy initiatives already approved.

1.2 Appended to the report are:

i) Summary of the cash limit 2002/03 by service; proposed virement within that, and revised cash limit

ii) Detailed actual income/expenditure to date against cash limit for each service, and an initial forecast outturn.

1.3 The cash limit and forecast outturn figures do not yet take account of the inflation allocation for the year, which will be finalised when the full details of the Local Government pay award are known. It is expected that the inflation allocation will be sufficient to meet the additional costs.

2. Background

2.1 On 30 May 2002 the Executive Member approved a report of the Director of Recreation and Heritage setting out the aims and objectives for his department and a strategic framework for the restructuring of services in line with these objectives. This would concentrate efforts on making the County Council's cultural resources more attractive and more accessible to a much wider range of people and maximising the contribution they make to the Council's corporate aims. The recommendations in the report had previously been considered and endorsed by the Recreation and Heritage Policy Review Committee on 23 May 2002.

2.2 The strategic objectives are concerned with:

· expanding the user base of the services and promoting inclusion and equal opportunities

· market development

· innovation and service quality

· underpinning service development with business planning and performance management processes

· progressive stewardship of assets

· staff development

2.3 Since May the department has moved rapidly forward on a range of initiatives. These flow directly from the primary objectives:

3. Budget Management

3.1 All of these projects are being taken forward this year within the existing budget. The total cost in 2002/03 is estimated as £456,000. To allow better coordination and management, the costs have been brought together in a "Policy Fund". There is no provision for this development in the budget approved for 2002/03 and, therefore, this report requests formal approval to transfer budget provision from Libraries and the Countryside Service to the Policy Fund.

3.2 It has been possible to identify £400,000 in the Libraries budget through a combination of re-phasing in expenditure on books and periodicals (£250,000) and other efficiency savings this year (£150,000), £35,000 is available from the Countryside budget as a result of full year provision from money added to the budget this year being available for new members of staff appointed in the summer to implement new developments. £21,000 is available from the `Director and Support' budget, with senior staff not taking up posts until the autumn.

3.3 Details of the proposed transfers are shown in the Appendix 1. It should be understood that these cover costs incurred in 2002/03 only. Many of these initiatives will require continued funding (including full year effects) in 2003/04. Taking these forward, together with other projects aimed at realising the strategic objectives, will require a substantial redirection of existing resources. This will be dealt with in preparing the budget for 2003/04.

4. Budget Monitoring 2002/03

4.1 Appendix 2 shows the individual cash limits, actual to date and forecast outturn for each service. The cash limit figures assume the virements contained in this report are approved.

4.2 The actual to date figures show the income/expenditure recorded to 30 September 2002. The budget is under pressure, and service managers have identified £618,000 pressures to be absorbed but there is no reason to believe that the overall outturn should not be contained within budget.

4.3 The exception to this is Milestones. The deficit for 2001/02 has carried forward to 2002/03 and the latest projection for 2002/03 was reported to the JMC on 1 October 2002 (a forecast further deficit of £155,700) Discussions are continuing with the JMC and Basingstoke and Deane Borough Council to consider options for recovering the position. Decisive action is being taken, including the appointment of a General Manager and an informal Executive Board comprising representatives of both partners to support the museum's management, which will be in place by the end of October and a recovery plan is being drawn up.

Recommendation

1. To note the position on the 2002/03 budget.

2. To approve the creation of a budget totalling £456,000 by virement within the overall Recreation and Heritage revenue cash limit for 2002/03 to take forward projects in support of the strategic objectives approved for the services.

Section 100 D - Local Government Act 1972 - background papers

The following documents disclose facts or matters on which this report, or an important part of it, is based and has been relied upon to a material extent in the preparation of this report.

NB the list excludes:

Published works.

Documents which disclose exempt or confidential information as defined in the Act.

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