Contact: Anne Hibbert, tel 847533, e-mail: [email protected]

1. Summary

1.1 This is the second budget monitoring report for 2005/06. The main pressure area identified in the previous report related to the budget for the Human Resources Department but progress has been made in reducing the projected overspending. In other areas, actions have been identified with the intention of containing spending within the cash limit.

1.2 Capital payments for the County Council at this stage of the year are expected to be broadly in line with the budget forecast of £192m.

1.3 The following decisions are sought:

i) To note the current position on the monitoring of the revenue budget and capital programme.

ii) To agree that part of the provision set aside for local links development be used to meet the £100,000 target saving relating to the reduction in the number of member meetings.

iii) To release the £40,000 earmarked in the contingency for communication and consultation for the South East Plan and agree a virement of £10,000 from Policy and Resources unallocated capital (a virement of £10,000 from Environment has also been agreed) to cover the planned revenue expenditure.

iv) To agree in principle the carry forward of planned underspendings relating to the Wellbeing of Older People Team, with the planned carry forward amount to be agreed as part of the 2006/07 budget.

v) To agree that £300,000 from the £1.5 m set aside for LAAs from the LPSA1 reward grant be allocated in 2005/06 to cover development costs.

vi) To approve the release of £50,000 for the Pay and Benefits project team and £140,000 for SAP configuration for the new pay arrangements from the project's earmarked reserve.

vii) To approve a one-off allocation of £20,000 from the contingency provision in the 2005/06 budget for two sustainability initiatives.

2. Reason

2.1 Regular service budget monitoring reports are submitted to Executive Members to review whether any action is required to contain spending within cash limits and ensure that resources are utilised effectively.

2.2 Decisions on the Policy and Resources revenue budget and capital programme impact on the financial resources used by central services to support all other County Council services and as such relate to all the corporate strategy aims:

· Maximising life opportunities

· Stewardship of the environment

· Achieving economic prosperity

· Building strong and safe communities

· Improving services

· Developing councillors and staff.

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(s) for the matter being dealt with if urgent

6.1 Not applicable

Approved by: (signature) Date: (date of decision)

Councillor T K Thornber