Contact: Bevis Ingram, ext 7508

1. Summary

1.1 The following decision 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 The Recreation and Heritage budget is the subject of regular monitoring. The position on the budget will be reported to the Executive Member and the Policy Review Committee throughout the year. The Executive Member received the first monitoring report in July, following an update on the budget in May (which was also considered by the Policy Review Committee). This paper is a brief update on the position since July; a more detailed paper will be presented to the October decision day.

2. Budget monitoring

2.1 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 31 August 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.

2.2 As previously reported, the budget continues to be under pressure. Management action is being taken on the pressures and there is no reason to believe that the budget cannot be delivered on target by the end of the year. This is reflected in the forecast figures.

2.3 Four areas of pressures should be highlighted

· The transitional costs of the Libraries review

· The transitional costs of the Countryside review

· Challenging income targets

· Milestones.

2.4 The additional costs associated with the Libraries review were highlighted in the report to the Executive Member in July. Since then, the action plan has been implemented and it is expected that this will mean that the additional costs can be contained within budget.

2.5 Any additional costs arising from the Countryside review cannot be assessed until the review is finalised; at this stage all that is necessary is to highlight that there may be additional costs - expected to be minimal in the current year - and that they will need to be found from within current budgets.

2.6 Initial indications are that the department is doing well against its challenging income targets. However, this is an area that requires further analysis and will be the subject of a further report in the autumn.

2.7 In order to meet these challenges, the department has held back from committing £200,000 of the additional reallocated funds of £1,874,000. This was initially done as a temporary measure but will have to stay in place unless it is clear that the cost reductions and higher income targets will be achieved and, crucially, that the additional pressures have been fully absorbed.

3. Milestones

3.1 Milestones is now on course for a breakeven position against budgeted subsidy levels in 2003/04. This follows close monitoring of the budget by the Executive Board and action taken in July in response to lower than hoped for visitor figures. Some of the Museum's functions will now be taken on by the Museums Service direct and this will create additional knock on pressures for the Museums Service budget, which will have to be dealt with. Detailed work on the long term recovery plan for the Museum is ongoing. Should visitor income decline further, additional action will be required.

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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