Contact: Jon Pittam, (01962) 847400; [email protected]

1 Summary

1.1 This report reviews the projected outturn for 2006/07 and recommends further action to provide additional balances to cover the risks of a further overspend on Adult Services.

1.2 The following decisions are sought:

a. Children's Services take action to bring its projected overspend back within budget by the year end

b. planned budget savings that cannot be achieved in 2006/07 be reported back to Cabinet in October together with the compensating action being taken to avoid an overspend in 2006/07

c. benefit realisation savings for the pay and benefits review be initiated in advance of implementation to provide financial flexibility and improved workforce productivity

d. Executive members are asked to action the pay and benefits savings in 2006/07 (£500,000, table 6) with a report back to the Cabinet in December on firm plans to make the necessary workforce and budget reductions of £2m in 2007/08, noting that the use of other savings to substitute for workforce savings will not be acceptable.

e. unsupported borrowing is used to release revenue contributions to capital to finance the start up costs of the contact centre, to be repaid by annual efficiency savings of £1m per annum from 2007/08

f. full year budget transfers of £4m (table 7) be included when setting the 2007/08 provisional budget guidelines and forward financial plan to finance the running costs of the contact centre and provide the efficiency savings in recommendation v)

g. Cabinet note the risk of a projected £11m call on balances in 2006/07 from Adult Services

h. savings plans of £14.5m be approved (table 11) to meet the shortfall of £11m and to reinstate balances by £3.5m for the excess withdrawal in 2005/06

i. that £1.5m be withdrawn from the earmarked reserve for the use of local public service agreement reward grant for the three year pilot scheme on home to school transport, to be directed by the Executive member Policy and Resources.

j. the Executive members for Chilren's Services and Environment are asked to prepare costed business plans for the use of the remainder of the local public service agreement reward grant (table 10) for the October Cabinet meeting

k. a target be set to increase capital receipts by a further £5m in 2006/07 and 2007/08

2 Reason

2.1 Cabinet need to review the current outlook for 2006/07 and take action to mitigate additional risks of further overspending on Adult Services causing financial difficulty during the year.

2.2 Consideration of the report supports the corporate strategy and in particular Aim 5.

3 Other options considered and rejected:

3.1 None.

4 Conflicts of interest declared by the decision maker or other Executive member consulted

4.1 None.

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: Date:
Councillor T K Thornber, CBE