Resolved

1.         That Quarter 1 2010/11 performance be noted including areas where further work is needed to ensure the Authority delivers improved outcomes. Also that members of the Cabinet discuss reported underperformance, and associated mitigating action, pertaining to their Lead Member portfolios with Corporate Directors as appropriate;

2.         That the Council’s financial position, as outlined in paragraphs 5 and 6 and appendices 4, 5 and 7 of the report (CAB 050/101), be noted;

3.         That the actions being taken to address the reported overspends be noted;

4.                  That the target adjustment requests, as set out in Appendix 3a to the report (CAB 050/101) be agreed; and

Action by:

CORPORATE DIRECTOR RESOURCES (C. NAYLOR)

Service Head Strategy and Performance, Chief Executive’s (L. Russell)

Service Head Corporate Finance, Resources (A. Finch)

A brief discussion took place which focused on the following points:-

·                    Clarification/ assurance was sought and given, with reference to the projected budget overspends set out in Section 5 of the report that appropriate mitigating action was being taken to ensure there was no overspend at the financial year end. Mr Naylor, Corporate Director Resources added that the forecasts contained in the Quarter 2 Budget Monitoring report would reflect the outcomes of this mitigating action.

·                    Mr Naylor, Corporate Director Resources, advised members of the Cabinet  that the budget monitoring information contained in the report did not yet reflect the “in year” savings of £7.63 million agreed by the Cabinet in July 2010. He continued by informing Cabinet that good progress was being made in respect of delivering/ implementing these and remedial action being taken if appropriate.

·                    The Chair noted that underperformance against target was reported in a number of areas of activity, and considered it appropriate that members of the Cabinet discuss this and associated mitigating action, where it related to their Lead Member portfolios, with Corporate Directors as appropriate. Accordingly he proposed, for the consideration of members of the Cabinet, that recommendation 2.1 contained in the report be agreed subject to this amendment.

·                    Clarification/ assurance was sought and given, with reference to Appendix 1 “Tower Hamlets Index”, Strategic Indicator 225 “Average time to re-let property (days), regarding the adverse direction of travel and red traffic light reported. Under performance in this area was a matter for Tower Hamlets Homes to address and performance was now improving with more robust monitoring by the Authority.

·                    Councillor Edgar, Lead Member Resources, commented that had attended the meeting of the Overview and Scrutiny Committee the previous evening and shared their interest in both significant underspends and overspends. He had noted their particular concerns regarding the expenditure profile for capital programmes, but had also been reassured by the response of officers that this was due to the timing of the projects involved. He had stated previously that capital underspend was of particular concern in the current environment of fiscal constraint, as if available funding was not used it could be lost, and in this context he would be monitoring rates of spend to ensure they were at an appropriate level. He would also take up the point raised about the importance of carrying out building works on time to maximise the accessibility of buildings.

The Chair Moved (taking account of the amendment he had proposed during the deliberation of this item), that

·                    In relation to recommendation 2.1 contained in the report, that Quarter One 2010/11 performance be noted including areas where further work was needed to ensure the Authority delivers improved outcomes.

·                    Recommendation 2.2 to 2.4, as set out in the report be agreed.

And it was: -

Resolved

1.         That Quarter 1 2010/11 performance be noted including areas where further work is needed to ensure the Authority delivers improved outcomes. Also that members of the Cabinet discuss reported underperformance, and associated mitigating action, pertaining to their Lead Member portfolios with Corporate Directors as appropriate;

2.         That the Council’s financial position, as outlined in paragraphs 5 and 6 and appendices 4, 5 and 7 of the report (CAB 050/101), be noted;

3.         That the actions being taken to address the reported overspends be noted;

4.                  That the target adjustment requests, as set out in Appendix 3a to the report (CAB 050/101) be agreed; and