A report by the Deputy Chief Executive/Director of Finance contained the mid-year review of the amounts held in balances, provisions and reserves. It was recommended that the release of those provisions and reserves which were no longer required to the General Fund balance.

The Cabinet was aware accepted good practice to regularly review the level of reserves and provisions. Section 25 of the Local Government Act 2003 requires the Director of Finance to comment on the adequacy of the General Fund balance and reserves in the setting of the annual budget.

During the financial year Departments had indicated that they would be seeking to use available provisions and reserves to help meet the financial pressures.  As these sums were released to the General Fund balance authorisation was needed to confirm that the balance could be used in this way.

RESOLVED: That

(1)  having regard to the risks involved, £5,423,000 be returned to General Fund Balance;

(2)  £14.5 million of provisions and £21.4 million of reserves be used to fund expenditure in 2011/12;

(3)  £333,000 of the balances arising from the release of Children and Young People Department reserves be used to offset the projected overspend within the Children and Young People Department in 2011/12; and

(4)  £140,000 of the balances arising from the release of Regeneration,

Housing and Planning Department reserves be used to fund the Working Wirral project in 2011/12.