Issue - meetings

To consider a report by the Head of Financial Services outlining spending variations.

Noted the spending variations in the revenue budget as at 31st December 2009.

The Cabinet received and noted a report by the Head of Financial Services (a copy of which is appended in the Minute Book) detailing expected variations in revenue expenditure in the current year.

In discussing the total amounts of payments written-off in the year for Council Tax and National Non Domestic Rates, Members were advised that there had been an increase in the number of company liquidations during 2009 as a consequence of the downturn in the economic climate which had led to an increase in the value of debts being written-off.

Members noted that the expected outturn of revenue expenditure was £22.2m which represented a reduction in the budget deficit of £1.2m.  However, Executive Councillors acknowledged that some £2.6m of reserves was required to balance the budget and that to achieve the level of savings in future years that there would be one-off costs and “invest to save” requirements.  In these circumstances Executive Councillors endorsed the proposal to establish a “special reserve” using the un-required reserve in the current year for this purpose.  Whereupon, it was

RESOLVED

  that the spending variations in the Revenue Budget as at 31st December 2009 and proposal to establish a special reserve be noted.