Contact: Paul Carey-Kent, Deputy Treasurer 01962 847525
David Howells, Director of Corporate Services 023 80064 4000 ext 203

1 Summary

1.1 This report sets out for members the latest budget monitoring based on spending to 30 November 2002.

2 Revenue

2.1 The latest position is given in Appendix A. Overall the projected outturn is marginally (-0.5%) below the budget. Given the uncertainties around the costs of industrial action and any subsequent settlement, this allows some useful potential flexibility. Major changes since the monitoring report in October are examined below.

2.2 The projected outturn figures do not take account of the impact of the industrial action and any agreed pay settlement over 4%. A number of additional costs such as support staff overtime, postage, IT, car allowances, training accommodation cancellation costs, etc will be incurred. It is hoped that these costs can be recovered by netting them off against the Firefighters deductions from pay before payment to the Government, thereby minimising any impact on the HFRS budget.

Buildings maintenance and other related costs -£50,000 (-4.7%)

2.3 The growth agreed for the cost implications of relocating staff from Copnor Fire Station and `B' Division Headquarters to other locations is not expected to be required, resulting in a saving of £50,000.

Utilities +£39,000 (+3.4%)

2.4 Business rates are now expected to be £39,000 higher. This is due to the revaluation of Eastleigh Fire Station following the completion of the building extension. The costs have been backdated to April 2001.

Other transport expenditure -£40,000 (-3.5%)

2.5 Car allowances are expected to be £40,000 lower based on the current and previous years expenditure. Estate cars have recently been purchased instead of vans and these are being used more resulting in a reduction in casual user allowance payments. In addition £10,000 was set aside for VAT returns in respect of allowances and reimbursements made to staff for travel (fuel) and subsistence. This has not yet been implemented by customs and excise and is unlikely to be required this year.

Other supplies -£126,000 (-6.8%)

2.6 Savings of £80,000 are estimated on hydrants based on this year's expenditure to date. This budget is not controllable and savings have arisen due to a reduced number of new hydrants being charged to the Authority. Traditionally the Authority has met the cost of installing new hydrants on new building developments, however there has been a trend for water companies to charge developers directly.

Income -£102,000 (-12.4%)

2.7 The additional income of £109,000 from the Farnborough Air show was not budgeted for as the award of the contract to HFRS was not known at the time of the budget preparation.

3 Pensions

3.1 In October a slight overspend was thought possible. Lump sum payments are now expected to be slightly higher (+£23,000) as a net result of more age related retirements and less ill health retirements but this is more than offset by lower pension payments (-£80,000). These changes now bring the budget in line with the original budget.

4 Capital

4.1 There are no changes to the expected capital payments in 2002/03 from that presented to the Authority on 4 December 2002.

4.2 The capital programme includes a provision of £480,000 for the Headquarters scheme. This is being reviewed by the Asset Management Panel.

4.3 Terms have now been agreed for the sale of garages at Paxton Road, Fareham, and it will be reported to members when the sale is completed. The resulting capital receipt will add to the resources available to fund the capital programme.

Recommendation

1 That this budget monitoring report be noted.

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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Budget Monitoring 2002/03 pp3.33d