Hampshire County Council

Recreation & Heritage Policy Review Committee Item 12

17 March 2005

Executive Member - Recreation & Heritage Item 16

17 March 2005

Budget Monitoring 2004/05

Report of the County Treasurer and Director of Recreation and Heritage

Contact: Bevis Ingram Ext: 01962 847508 email: [email protected]

Stuart Dorward Ext: 01962 846110 email: [email protected]

1. Introduction

1.1 This report provides an update on the 2004/05 financial position, comparing activity to the end of January with the revised budget which was approved in January. The projected outturn remains roughly in line with that reported in November, and subsequently in the budget report. Therefore with the actions previously approved, the out turn result will be at budgeted levels.

2. 2004/05 Budgetary Position

2.1 The main pressures continue to fall on the Libraries and Information Service, where total pressures amount to £420,000. This represents an improvement against the £450,000 anticipated in November. As shown in the detailed appendix, the £420,000 is the net effect of the following factors:

	£000
Book fund - new and refurbished libraries	250
Supplies and services - primarily the running costs of the Peoples' Network	200
Income shortfall owing to Library closures	290
Offset by savings from rigorous financial and vacancy control	-320
Total - Libraries & Information Service	420

2.2 Where libraries have reopened after refurbishment, early indications are that income is exceeding previous levels at those libraries. It is hoped, therefore, that if the new income levels persist, and with the continued application of rigorous financial control, the final outturn will represent a further improvement against this position.

2.3 The projected outturn for the majority of other services is very close to that reported in November. The exception to this is the Arts Service, where an overspend of £46,000 is predicted (compared to £11,000 in November). This is due to one-off costs associated with the Arts Service Review.

2.4 In November, it was anticipated that additional income at Calshot Activities Centre would enable an underspending of £65,000 to be used to reduce the prudential borrowing commitment relating to the new accommodation block currently under construction. Based on activity to the end of January, the underspend is now predicted to be £96,000. The improvement has come about as a result of both slightly increased income and reduced expenditure, and it is proposed that the total underspend at the year end be transferred to capital.

2.5 The budget report also outlined the intention to use revenue underspending on Outdoor Centres to contribute to the funding of improvements at the Welsh Mountain Centre. The project appraisal elsewhere on the agenda reflects the anticipated contribution of £54,000 from the 2004/05 accounts.

2.6 The above factors, and other minor variations on individual services, mean that the net transfer from capital to revenue has reduced from £339,000 to £275,000:

	Current Position	November Report
	£000	£000
Net Revenue Pressures	275	339
Transfer to capital (Calshot and Welsh Mountain Centre)	150	65
Total pressures Funded by: Permanent transfer from capital Temporary transfer from capital	425 154 271	404 154 250
	NIL	NIL

2.7 It is still intended to freeze approximately £150,000 of the revenue funded capital programme, and to fund the balance of the pressures on the departmental budget by deferring an element of the capital transfer from the Library and Information Service. If the improved libraries income is sustained, it is likely that this can be limited to the anticipated £250,000, rather than the £271,000 above. Given the overall position, it is not proposed to reinstate the £20,000 of deferred Sport and Community grants.

3. Implications for 2005/06

3.1 The budget for 2005/06 includes a one-off growth item of £250,000 for the Book Fund, so that the deferral of the transfer of capital will not impact on spending power in the coming year. Through redeployment, it has also been possible to achieve funding for the running costs of the Peoples' Network and the departmental IT2000 network. Achieving this requires services to make efficiency savings, and a programme is being drawn up to ensure that these are achieved.

4. Conclusion

4.1 The pressures on the 2004/05 Recreation and Heritage revenue budget remain, and these will be addressed through the freezing and deferral of capital programme expenditure.

Recommendation

That the proposal set out below be supported and submitted to the Executive Member for Recreation & Heritage for his consideration:

i) that the financial position be noted.

Section 100 D - Local Government Act 1972 - Background Documents

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:

1. Published works

2. Documents which disclose exempt or confidential information as defined in the act.

TITLE LOCATION