Archived decisions

1.

Variation between the actual cost of inflation in 2006/07 (as at November 2006) and the provision for inflation included in the 2006/07 budget

£'000

£'000

Additional cost of inflation

4,763

Less:

-

full year effect of pay awards during 2006/07

4,426

-

Allocation from contingency for business rates

-20

4,406

=

Shortfall in the provision

357

2.

Significant costs of inflation between budgeted 2006/07 outturn prices and November 2006 prices

2.1

Pay awards

Provision was originally made in 2006/07 for pay awards of 2.95% for teachers and other employee groups.

17,358

No additional cost in 2007/08 of the pay awards agreed in 2006/07 is anticipated.

-

The pay awards agreed were:

Negotiating body: Effective date:

%

Local Government Services Staff

Hampshire Management Grades

Teachers

Soulbury

Youth Workers

1 April 2006

1 April 2006

1 Sept 2006

1 Sept 2006

1 Sept 2006

2.95

2.95

2.50

2.95

2.95

2.2

Non pay inflation

Provision was originally made in 2006/07 for a net amount of

5,715

This was for general price increases of 2.5% (£7.279 million) offset by increased income to match inflation in gross expenditure

Additional cost of price increases other than pay and net of income

357

The most significant variations within this additional cost are as follows:

Repair and maintenance of buildings

Electricity

Fuel oil

Water and sewerage

Home to school transport

Non County Placements (CWD)

Catering contract payments

Outturn 2006/07 to November 2006

%

-3.2

-12.9

-4.6

3.4

3.8

0.9

2.1

Cost in 2007/08

£'000

-319

-213

-58

88

670

40

105

3.

Allocation for future inflation

£'000

Provision for all pay awards of 2.25% in 2007/08

10,434

Increase in local government employers' pension contributions (from 275% to 295% of employee contributions)

1,149

Provision for non-pay inflation at 2.5%

7,200

Reduction for increased income

-554

Total allocation for future inflation

18,229