1.

2004/05 cash limit

£'000

2004/05 budget requirement

1,052,275

Plus contribution from balances

1,365

1,053,640

Adjustment to cash limits on closure of 2003/04's accounts

232

Additional spending proposed on South East Plan and Older Persons communication campaign offset by reduction in spending on grants to voluntary organisations

100

Adjusted 2004/05 cash limit

1,053,972

2. Comparison of revised budget with cash limit

Cash limit

Revised budget

Variation

£'000

£'000

£'000

Service cash-limited expenditure:

Education

675,144

675,144

-

Environment

90,506

90,506

-

Policy and Resources

44,716

43,891

-825

Recreation and Heritage

28,174

28,174

-

Social Services

297,544

297,544

-

1,136,084

1,135,259

-825

Non cash-limited expenditure:

Mandatory awards

1,800

160

-1,640

Flood protection levies

654

654

-

Magistrates' Courts

11,065

11,010

-55

Capital financing charges

34,171

32,623

-1548

Revenue contributions to capital

26,110

26,110

-

Specific grants

-171,388

-169,782

1606

Inflation and central contingencies

5,616

3,947

-1,169

Library VAT refund

-

-439

-439

Transfers to/(from) earmarked reserves:

-

As per adjusted budget

9,860

9,860

-

Policy and Resources underspending

-

825

825

Magistrates' Courts underspending

-

8

8

Business rate saving to Invest to Save reserve

-

314

314

Total Spending

1,053,972

1,050,549

-3,423

Forecast reduction in Government grant

-1205

-2218

3.

Analysis of main variations

£'000

Policy and Resources planned underspending

-825

Earmarking of planned underspending to be carried forward to 2005/06 and 2006/07

825

Reduced cost of mandatory student awards due to payments being made by Student Loan company

-1640

Matched by reduced specific grant

1640

Reduction in Magistrates' Courts cash limit due to lower carry forward of underspending from 2003/04 than planned

-55

Matched by lower Magistrates' Courts grant (£47,000) and reduced reserve contribution (£8,000)

55

Lower capital financing charges, due mainly to higher interest received on balances

-1548

Children's Act change grant allocated to meet costs which would have otherwise have had to be met from the budget requirement

-81

Schools contingency not required as a result of approval to increase in central spending

-1078

Other contingency savings mainly as a result of lower interest rate and business rate increases

-591

Earmarking of business rate saving to Interest to Save reserve

314

VAT refund on income from library hire of videos and electronic games

-439

Anticipated reduction in Revenue Support grant due to population adjustments proposed by the Government in respect of 2004/05 (£1.2m) and implemented in respect of 2003/04 (£5,000)

-1205

-2,218