Agenda item

Presented by Azhar Rafiq, Finance Manager, Resources – Joint Report of Corporate Director Regeneration and Economic Development and Corporate Director Resources.

The Chair introduced the Principal Accountant, Strategic Finance, Ed Thompson who was in attendance to speak to Members in relation to the Quarter 3, Revenue and Capital Forecast Outturn 2011/12 Report (for copy see file of minutes).

Members noted that the RED General Fund had several adjustments as set out in the report, with the overall Revenue Budget being £43.166 Million revised from the original budget of £39.617 Million).  Councillors noted that there was an effective underspend of around £1.319 Million against this new budget, with the year to date spend being £41.847 Million.  The Principal Accountant explained that the main variances were associated with Economic Development and Transport, with the main savings having been made in relating to staffing, in line with the Medium Term Financial Plan (MTFP) targets and the variances within Building Control and Business Services owning to the current economic climate.

The Committee learned that the Housing Revenue Account was broadly in line, with the main variances as set out in the report balancing out across the HRA.  The Principal Accountant explained that the Capital Programme revised budget was £92.421 Million, £49.267 Million being in respect of the General Fund and £43.154 Million being for the HRA.  Members noted the amendments to various schemes and that the projected outturn was such that there would be an approximate 89% spend for the year, leaving approximately 10-11% to be carried over to next year’s budget.

The Chair thanked the Principal Accountant and asked Members for their questions. 

Councillor M Wilkes asked whether the underspends on staff posts were unfilled posts and wondered whether the number of vacancies pointed to the reduction in staffing levels being carried out too quickly and if savings were being mat early in respect of staffing savings, was the Authority at risk of not being able to deliver services effectively.

Councillor J Armstrong noted that the MTFP identified that around 1,600 posts would need to be deleted from the establishment and that when staff applied for Early Retirement or Voluntary Redundancy (ER/VR) then a business case must be proven before it can be granted, taking into account maintaining service levels. 

The Head of Policy, RED, Andy Palmer explained that at the beginning of the year, RED had zero vacant posts and that there were around 170 posts to go under the MTFP, with a lot of those being associated with loss of funding such as ABG and so on.  Members were also informed that the new structure for RED looked to remove duplication and make savings from management and the back office, not from frontline service provision.

Councillor M Wilkes asked how many posts were currently vacant within RED and whether it would be possible for Members to have information as regards which posts were vacant so Members may judge whether these vacancies were an issue effective services.  The Head of Policy explained that finance would build in a factor of around 3% so the figure was around 20 posts and that posts that were critical were filled or extended wherever possible should ABG funding or such end.  Members were given the examples of a Capital Development Officer post being extended to oversee the completion of URRI projects and 2 posts associated with the Capital Programme.

Resolved:    

That the report be noted.