A report of the Director of Finance informed the Cabinet that the Department for Communities and Local Government (DCLG) had given the Council permission to treat statutory redundancy payments as capital spend, rather than revenue spend, in 2011/12.  There were a number of conditions attached to this permission and the Council had to reply by 7 October 2011 accepting them and the amount to be capitalised.

In making use of this permission the Council needed to approve a variation in the Capital Programme for 2011/12.

Members wanted to avoid compulsory redundancies and informed that they wanted to hold serious talks with the Trade Unions on how the Council would be run.  They also reported that the original Severance Scheme pre-November 2010  had been reinstated by the Employment and Appointments Committee at its Special meeting earlier that evening

RESOLVED: That

(1)  the DCLG be advised that the Council will utilise the permission to treat as capital £4 million of revenue expenditure in 2011/12;

(2)  the Capital Programme be increased for the Finance Department by £3 million and for the Children and Young Peoples Department by £1 million and that this be referred to Council; and

(3)  the release of £3 million from the provision for the Early Voluntary Retirement/Voluntary Severance Scheme costs to balances be agreed.