Meeting documents

Cabinet 25 June 2008

Agenda Item 15 - Update

Since the agenda papers were published the Council has received confirmation from HM Revenues and Customs that we will shortly be receiving settlement of our claim in respect of VAT on Museum Charges between 1990 and 1996.

Our claim was about £2.86m and the inspector has calculated the interest as nearly £2.16m.  After taking account of costs, the net receipt to the Council will be £4.766m. This will be included in the 2007/08 accounts and has the effect of further increasing our general reserves at 31 March 2008 (after taking account of the proposals in the Cabinet Report) to £13.8m.

This is a one-off increase in resources which means that the Council has already met its reserves target, and therefore now has additional financial flexibility which enable it to consider a wider range of options as part of its medium term financial planning process. However, it is still the case that the rate of growth of financial pressures to spend is in excess of the rate of growth of the grant from central government, and that the national efficiency strategy expects councils to achieve 3% annual efficiency savings. A one-off increase in resources increases flexibility in meeting these challenges, but does not in itself resolve them.

Additional Resolution 2.12

Cabinet agrees that in light of the overall out-turn position and the arms-length financial framework for Heritage Services that the £115k Heritage Services underspend be transferred to an earmarked reserve. Any drawn down of the reserve to be authorised by the s151 officer in consultation with the Cabinet Member for Resources and Cabinet Member for Tourism, Leisure and Culture, in the context of the Heritage Services Business Plan.