Agenda item

Report of the Chamberlain.

The Sub-Committee received a Report of the Chamberlain on the Efficiency and Sustainability Plan – Central Risk Review. The following points were made.

Members expressed unease about underspends. Officers responded that a risk-averse approach, in recent years, had been a problem; however, departments were getting to a better place, but more work was needed. The Chairman was concerned that changes to the policy on material departmental underspends (at end of financial year), should not result in the unintended consequence of departments rushing to spend their remaining budgets in the final few weeks before 31^st March - this would be bad practice, and was unlikely to result in longer term benefits.

Officers responded that departments currently had the fall-back options of carry forwards and earmarked reserves. The Chairman stressed that the Chamberlain’s Department should be alert to behavioural changes; any unintended consequences of a shift in policy on underspends needs to be identified quickly. 

RESOLVED – That Members note the Report.