Contact: Nick Gibbins, (01962) 847544; [email protected]

1 Summary

1.1 There is an overall underspending of £8.2m (1.4%) against the 2007/08 cash limit.

1.2 Spending on service cash limited budgets is £3.4m (0.25%) lower than budgeted, mainly as a result of savings on Adult and Children's Services. This satisfactorily completes the recovery and modernisation programme over two years which was set for Adult Services.

1.3 £1.7m is added to balances after allowing for the carry forward of over and underspendings and in accordance with the financial management policy. Further savings of £6.5m have arisen on other budgets, mainly interest from more favourable cash flow and higher balances than forecast.

1.4 It is proposed that the total saving of £8.2m, together with a saving of £0.1m in 2008/09 on the set up costs of the Hampshire Senate, is added to balances in the first instance. £5.1m will be used to reduce the council tax increase to 3% (from 3.5%) in each of 2009/10 and 2010/11. The remaining £3.2m will be used in one off investment, primarily for reinstating potholes and other road and pavement maintenance, and to improve the quality of life in the Council's residential homes for the elderly.

1.5 The following decisions are sought:

(a) that the outturn variations in service cash-limited expenditure, as set out in Table 1, be approved

(b) that Adult Services, Children's Services, Environment and Policy and Resources retain 50% of their underspendings, and Recreation and Heritage carries forward its small overspending to 2008/09, in accordance with the County Council's financial management policy

(c) that adjustments and variations on other budgets as set out in Table 3, be approved

(d) that extra balances be used as set out in Table 5

(e) that contributions to and from earmarked reserves be made, as set out in Appendix 4, and the draft protocol, as set out in Annex 2 to Appendix 4, be approved

(f) that the report on the County Council's treasury management activities, prudential and financial health indicators as set out in Appendix 5 be approved

(g) that the proposed policy on the level of minimum revenue provision for the repayment of debt for 2007/08 and 2008/09, together with the prudential indicators, be submitted to the County Council for approval

(h) that the backward look efficiency statement for 2007/08 be approved for submission to Communities and Local Government, as set out in Appendix 6

(i) that the final accounts of the County Council for 2007/08 be approved

(j) that the final accounts of the Hampshire Pension Fund, as set out in Appendix 7 be approved

(k) that progress in implementing financial management policies, as set out in Appendix 8 be noted

(l) that service capital programme cash limits for 2008/09 be increased by the sums shown in:

i) column 6 of the table in Annex 1 of Appendix 9 (to reflect the carry forward of capital schemes and the balance of cash limits from 2007/08)

ii) column 3 and 4 of the Table in annex 7 to Appendix 9 (to reflect services' share of capital receipts)

(m) that the partnership accounts for 2007/08 set out in Appendix 10 be noted in recognition of the County Council's responsibility for financial stewardship

(n) that the annual internal audit assurance statement, set out in Appendix 11, which concludes that the County Council has an appropriate framework of control that provides reasonable assurance regarding the effective, efficient and economic achievement of the County Council's objectives, be noted

(o) that £0.5m be allocated from the Invest to Save reserve in 2008/09 to finance the costs arising from the corporate services and efficiency reviews, as proposed by the Leader of the Council and Chief Executive, subject to a further report to Cabinet in July 2008

(p) that the balance of the contingency in the 2008/09 budget for unfunded budget pressures of £156,000 be allocated to provide continuing funding to the end of the financial year for Hampshire Action Team support and revised scrutiny arrangements.

2 Reason

2.1 To enable the Cabinet to review the 2007/08 final accounts, prior to the Statement of Accounts being submitted to the Governance Committee for approval.

3 Other options considered and rejected:

3.1 Not applicable.

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

4.1 Not applicable.

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 - Chairman