Hampshire County Council

Buildings, Land and Procurement Panel

4 April 2006

Revenue Repairs Budget 2005/6 and 2006/07

Report of the Director of Property, Business and Regulatory Services

How the conclusion in this report fits with the Corporate Strategy

The activities covered by this report affect the majority of the County Council's services, contributing to the achievement of all the corporate aims, in particular:

Aim 1 - maximising life opportunities - by maintaining the built estate to a high standard for the community to enjoy.

Aim 5 - improving services - by providing well maintained premises that enable improved service delivery.

1

Summary

1.1

The purpose of this report is to update Panel members on the revenue budget position for 2005/06 and to confirm the budget allocation for 2006/07.

2

Revenue budget 2005/06

2.1

Appendix 1 shows the level of commitment at the end of February against the revised budget for 2005/6. It is expected that, subject to remaining calls on the contingency, the budget of £13.226m will be fully spent by the end of the financial year.

2.2

The total level of commitment shown in Appendix 1 is 97.4%. However, two elements of the budget are delegated to schools and are not within the control of this Panel. These budgets relate to minor repairs arranged directly by schools and delegation to those Foundation Schools that have not entered into buy back arrangements with Property Services (all Community Schools have chosen to enter buy back arrangements with Property Services). When only those budgets within the Panel's control are included the level of commitment reduces to 96.7%.

2.3

The winter contingency of £335,000 currently has a low level of commitment despite the cold weather in early March. It is likely that further commitments will be made against this sum but if an element remains unused it is recommended that this should be carried forward in full to 2006/07 in line with previous practice.

2.4

44% of the revenue budget relates to the four engineering term maintenance contracts. It is anticipated that spending in this area will be almost exactly in line with the budget allocation.

3

Revenue Budget 2006/07

3.1

The base budget for 2005/06 was £13,258m (the actual budget figure of £13.226m included the overspend carried forward from 2004/05).

3.2

From 2006/07 the government is changing the way in which funding is provided to schools with the introduction of the Dedicated Schools Grant (DSG) and in future repair and maintenance work for schools will be funded from this grant provision.

3.3

Inflation relating to repair and maintenance work continues to run at levels of around 7%. In line with the County Council's budget strategy, inflation of 2.5% was added to the proportion of the base budget not relating to schools. However, in recognition of the forecast level of inflation relating to repair and maintenance work for 2006/07, a further £120,000 was included bringing the total inflation allocation for non-school revenue repairs to 5.6% with the balance to be found from efficiencies and other savings. The funding from the DSG includes an allowance of the full 7% estimated to be required to cover inflationary pressures.

3.4

The proposed allocations which include the above inflation allocations for 2006/07 are shown at Appendix 2.

3.5

Achieving value for money will continue to be a priority for the revenue repair and maintenance budgets. Preparatory work ahead of the process to re-let the engineering term maintenance contracts in 2007 is underway and this will provide an opportunity to review the provision of this important element of the service. The nature of the budget with 71% of the total provision committed to schools work (including the amounts delegated without a buy back option), the overriding need to ensure buildings can be safely occupied and the prevailing inflation rates means that scope for cashable efficiency savings is limited.

4

Conclusion

4.1

Final spending in 2005/06 will be very close to cash limit with the use of the winter contingency determining the final outcome. In line with practice in previous years any unused balance will be carried forward in full to 2006/07.

4.2

The change in funding arrangements for schools will further emphasise the relative difference in spending power between the budget allocations for schools work and the non education sector.

Recommendation(s)

That the Panel advises the Executive Member for Policy Resources that approval be given to:

1

Any uncommitted element of the winter contingency being carried forward to 2006/07.

2

The budget allocations for 2006/07 as set out in Appendix 2.

Budget

£'000

Commitment

£'000

%

Non-Education Services

Redecorations

525

243

46.3

Engineering servicing and repairs

1,625

1,424

87.6

Minor structural repairs

754

895

118.7

Asbestos testing

40

19

47.5

Vandalism reinstatement

105

200

190.5

Sub-total

3,049

2,781

91.2

Contingency

335

11

3.3

Delegated to schools

Delegation under LMS scheme

2,194

2,194

100

Eotas

23

23

100

Delegation under fair funding:

Community Schools

6,453

6,659

103.2

Foundation Schools

666

666

100

Sub-total

9,336

9,542

102.2

Other Allocations

Strategic consultants

380

475

125

Non functional buildings

100

46

46

Gypsy and Traveller Sites

26

26

100

Sub-total

506

547

108

Total

13,226

12,881

97.4

Budget Allocation 2005/06

Proposed Allocation 2006/07

£'000

£'000

£'000

£'000

Non-Education Services

Redecorations

525

554

Engineering Servicing and Repairs

1,625

1,715

Minor Structural Repairs

754

796

Asbestos Testing

40

42

Vandalism Reinstatement

105

111

Sub-total

3,049

3,219

Contingency

355

387

Delegated to schools

LMS delegation

2,194

2,249

Eotas

23

24

Fair Funding delegation

Community Schools

6,453

6,995

Foundation Schools

666

722

Sub-total

9,336

9,990

Other Allocations

Strategic Consultants

380

401

Non-Functional Buildings

100

106

Devolved to other Services

26

27

Sub-total

506

534

Total

13,226

14,130