Contact: Dave Wootton, ext 6931

1. Summary

1.1 The following decision is sought:

That approval be given to the Growth, Redeployment and Savings Plans 2003/04.

2. Reason

2.1 At the meeting of Cabinet on 10 February 2003 it was requested that Executive Members consider plans for growth, redeployment and savings proposals.

3. Other Options Considered and Rejected

3.1 Taking no action.

4. Conflicts of Interest Declared by the Decision Maker or a Member or Officer consulted - None.

5. Dispensation granted by the Standards Committee - Not applicable.

6. Reason(s) for the Matter being dealt with if Urgent - Not applicable.

Approved by: Date:

Councillor K B Estlin

7. Introduction

7.1 The report on the 2003/04 budget to Cabinet on 10 February 2003 referred to the requirement for Executive Members to consider plans for growth, redeployment and savings proposals.

7.2 The purpose of the plans is to enable the County Council to demonstrate progress in linking budgets more closely with performance management, one of the Audit Commission's criteria within the "use of resources" element of the Comprehensive Performance Assessment.

7.3 For the Executive Member for Environment this means that plans are needed for those areas of growth covered by the redeployment of funds from other budget areas (strategic planning/sustainability initiatives £160,000) and for other areas (ie Bus Contracts £500,000 and Disposal of Fridges £700,000). The Minerals and Waste Development Framework costs of £100,000 will also be found from redeployment, and approval to prepare the framework was agreed by the Executive Member on 11 March 2003.

7.4 A report on additional funding for Highway Maintenance (£3.5 million) has already been considered by Cabinet following the award of extra funding.

7.5 Additional funding of £150,000 was also awarded by Cabinet for the Natural Resources Initiative (NRI) and the Business Plan for this activity was presented to Cabinet on 28 April 2003.

8. Areas of Growth Covered by Redeployment

Strategic Planning and Sustainability Issues (£160,000)

8.1 Work is under way on two sub-regional plans and it is essential that the County Council has the ability to test the impact of alternative development scenarios, particularly in terms of the transport impact. Match funding is also required for a number of small-scale sustainability initiatives for which a programme is being prepared. The main outcomes from this work will be draft spatial strategies for land use and transport development over the next 15-20 years in South Hampshire and in the Blackwater Valley, together with a vision for development over the county as a whole, which the County Council can use to influence the regional strategy which the South East England Regional Assembly is to replace by December 2004.

Funding

8.2 This area of growth (together with the £100,000 for the Minerals and Waste Local Plan) will be funded by redeploying resources as follows:

£,000

Reduced level of Traffic Regulation Orders 50

and sign renewal

Efficiencies in Street Lighting energy 44

Vacancy management, travelling, etc 166

260

9. Other Areas of Growth

Public Transport Bus Subsidies (£500,000)

9.1 The base budget for public transport subsidies was set at £4.621 million, of which a maximum sum of £267,000 is planned to be recharged to the Rural Bus Subsidy Grant. This is in accordance with the rules governing the use of this grant, which allow local authorities to redirect up to 20% of their overall grant to support existing services serving rural locations which were in operation prior to the introduction of the grant during 1998/99. However, the cost of supporting existing contractual commitments continues to grow, reflecting the cost of re-tendering, inflation increases and other changes to the support network. The full year effect of these increases from last year, together with other anticipated variations in 2003/04, would have resulted in a shortfall of some £500,000 in the 2003/04 budget. The main outcome will be that it will be possible to maintain the bus service network and not make reductions in service, subject to routes meeting the minimum criteria for support. The situation will be closely monitored throughout the year and any variance from the forecast position will be highlighted as soon as possible. In addition, officers will continue to seek lower cost and innovative means of meeting transport needs on a county-wide basis. The maintenance of the network is an important factor in maintaining progress towards the County Council's Public Service Agreement target for usage of the bus network of a 10% increase by 2010 (from 2000 levels).

Disposal of Fridges (£700,000)

9.2 The estimated cost of storing and disposing of fridges during 2002/03 was between £1.250 million and £1.300 million, assuming average monthly numbers are maintained. This cost estimate is based on the existing European export price that Waste Disposal Authorities (WDAs) have agreed. It is strongly believed that the contract that has been entered into represents best value and is amongst the lowest across the WDA network. Nevertheless, the County Council is faced with an additional budget pressure of up to £0.7 million arising from the storage and disposal of fridges this year. The position will be continuously reviewed during 2003/04 as increased competition among reprocessors and the prospect of a retailer take-back trial in Hampshire could reduce the County Council's cost. The Cabinet will be able to consider the implications of unfunded costs later in the year against the additional balances set aside for this and other external uncertainties.

9.3 The main outcomes will be ensuring that the County Council continues to meet its statutory obligations under the ozone depleting substances regulations. In addition, the operation to capture CFCs from redundant fridges does result in up to 90% of each fridge being recycled, thus increasing the County Council's annual recycling rate.

10. Funding

10.1 Funding for these two growth areas (totalling £1.2 million), together with £150,000 for NRI, has been provided by Cabinet from central funds and will eventually be reflected in the base budget for 2004/05.

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