Agenda item

Report of Director, Governance, Resources and Improvement (copy herewith)

The Director for Governance, Resources & Improvement submitted a report that set out the current year’s projected outturn position and the management action being taken to minimise the impact on the Council’s general reserves at the end of the financial year.  The Director commented on the present forecast for an overspend of £1.9m at 31 March 2007.  He also commented that most of the impact had arisen from a higher than expected take-up of the new statutory concessionary fare scheme.  Further measures were being taken to mitigate the overspend by taking opportunities to capitalise regeneration schemes where a capital receipt would result; proper recharges being agreed as part of Section 106 Agreements and by using £1m from reserves.  This would reduce the Council’s balances to approximately £1.9m.  He also noted that some funds were being made available in case of further claw back of benefit subsidy by the Government. 

The Director for People, Planning & Regeneration commented that the new Statutory Concessionary Fare Scheme applied to the over-60s and the scheme that had been implemented in Northamptonshire was at the statutory minimum with the addition of the Dial-a-Ride service.  The estimated cost of the Dial-a-Ride service represented £60-70,000 of the overspend that had been reported.  The budget for the concessionary fare scheme had been arrived at upon best advice from the County Council and Atkins.  The arrangement was that bus operators did not make or loose anything by implementing the scheme.  The Department of Transport had made available a toolkit to help authorities to estimate the cost but this had been issued late in the day and the only evidence that could be used to help in arriving at costs was the experience in Wales and Scotland where the scheme had already been implemented.  The use of a concessionary fare scheme was demand led and the greater than expected take-up represented an increase cost to the Council of £900,000 this year.  He noted that in 2007/08 costs should reduce but the bus operators could appeal the Council’s assessment to the Secretary of State. 

Mr C Grethe commented that the Disabled Forum had welcomed the introduction of the free bus scheme and had made some comments about difficulties for people not being able to access the service until after 9:30 am.  He accepted the problems that this was causing the Council but welcomed the use that people were making of the Scheme.

Councillor Hadland commented that use of the Scheme was to be welcomed even if it did provide the Council with a financial difficulty.  He also noted that several of the overspends detailed in the report were in relation to issues over which the Council had no choice.  It was also noted that information from the bus companies on passenger movements in relation to use of the scheme would be interesting to know.

RESOLVED: (1) That the report and the management action to contain the forecast overspend be noted and approved.

                        (2) That the potential impact for future years be noted as being covered in the subsequent report on the budget for next year and following years.