Contact: Bevis Ingram, ext 7508

1. Summary

1.1 The following decisions is sought:

To note the position on the 2003/04 budget

2. Reason

2.1 Regular monitoring and reporting on the budget.

3. Other options considered and rejected

3.1 Not applicable.

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. Appendix A shows a detailed actual/income and expenditure to date against the cash limit for each service and an initial forecast outturn.

2. Background

2.1 The budget proposals for 2003/04 for Recreation and Heritage were considered by the Policy Review Committee on 23 January and approved by the Executive Member on 29 January. The final approved budget was agree by Cabinet on 10 February and by the County Council on the 20 February and contained £1,874,000 of additional or re-directed resources. The allocation of this was agreed at the decision day on 29 May, after consideration by the Policy Review Committee on 22 May.

2.2 The January report identified new initiatives to be supported by the redeployed funding under the four strategic headings of:

· expanding the user base

· innovation and service quality

· market development and

· staff development.

2.3 These linked back to the objectives of management approved for Services in May last year.

3. Budget monitoring

3.1 Appendix A shows the individual cash limits, actual to date and forecast outturn for each service. The actual to date figures show income/expenditure recorded to 30 June 2003. The actual figures for some services look out of line with the budget, but this is due to the profile of income and expenditure during the year. For example, the Milestones figure does not yet include income to be received from Basingstoke and Deane Borough Council, and the figure for Calshot includes a large amount of income received in advance of courses.

3.2 The budget is under pressure. This is partly because the redistribution of resources in 2003/04 is based on planned cost reductions and higher income targets within specific services and this presents a challenge to Recreation and Heritage managers. However, there is no reason at present to believe that these challenges cannot be overcome and that the budget can be delivered on target.

3.3 There are also additional pressures from the transitional costs of the Libraries review (£291,000) which need to be absorbed. This could have a knock on effect in 2004/05 and 2005/06 as well. Significant management action is required to ensure that this does not cause an overspending in the current year. An action plan is in place and is already being implemented and there is no reason to believe the overall outturn should not be contained within budget.

3.4 In order to meet the challenges outlined above, the department has held back from finally committing £250,000 of the additional reallocated funds of £1,874,000. This is a temporary measure until it is fully assured the cost reductions and higher income targets will be achieved and the additional pressures have been fully absorbed.

4. Income generation

4.1 All services are now actively engaged with individual initiatives to meet these challenges and generate additional income and improve efficiency. To further assist this process, a series of departmental initiatives are being implemented to further promote income generation and best practice.

4.2 The aims of initiatives are to:

· coordinate and encourage the generation and spread of ideas and knowledge across the department,

· motivate individuals to share and use knowledge to achieve results across the department, and

· support continuous improvement and income generation as an integral responsibility of all staff in the department.

5. Milestones

5.1 Finally consideration should be given to Milestones which in previous years has made a deficit in addition to the subsidy provided by the two partner authorities, Hampshire County Council and Basingstoke and Deane Borough Council. This year additional contributions are being made by both partners to stabilise the finances to enable a long term recovery plan to be put in place. There have also been some cost reductions and a new marketing plan. Milestones is currently on course for a breakeven position at the higher subsidy level in 2003/04. The long term recovery plan is not yet in place, however.

Recommendation

1. To note the position on the 2003/04 budget.

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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