Issue - meetings

The report will be tabled at the meeting 

The Resources portfolio holder introduced this report on the revision of the estimates by expressing her disappointment at the large increase in the Council’s underspend when compared to estimates that were approved by Council on 28 February 2008. She asserted that whilst there were legitimate reasons for much of the underspends, officers should have publicised them in February and it was not acceptable that the Executive had only been made aware of the contents of this report shortly before the meeting.

Cabinet noted that the majority of the underspend was due to the rollover of budgets, to be spent in 2008/09. The Community Services portfolio holder stated that he took full responsibility for the overspend in the community services budget.

Councillor SGM Kindersley, Leader of the Opposition, asserted that the Cabinet were responsible for the underspend and he felt it was inappropriate for the Resources portfolio holder to criticise officers, who had no right of reply.

Other non-executive members made the following points:

• The Council had a history of underspending and this year’s figure was an improvement on the past
• Budgeting was an inexact science and an underspend was preferable to an overspend
• It was disappointing that funds which could have been directed into urgent projects remained unspent

The Leader stated that Cabinet accepted responsibility for this matter, but added that it was also important for the Executive to be honest with officers, which included praising good performance as well as expressing disappointment when accurate information was not provided in a timely fashion.

The Chief Executive apologised to Members for the late disclosure of the underspend. He explained that Senior Management Team were taking steps to ensure that budget monitoring improved.