6.1 Financial overview

Overall Position – all Units

The overall financial postion across all Units is shown in figure 66 below.

Initial indications are that the 3G contracts have delivered £17.8m more work for the same level of budget.

Figure 66 Overall position – All Units

A full profile of individual Unit financial performance is given in figure 67.

Spend was broadly in line with budget overall, with underspends in SE and NW partly matched by an overspend in NE and SW.

Whilst the total value of work done was similar to the previous year, an Efficient Government Assessment review for 2007/08 has indicated that the 3G contracts have delivered more work on the network for a similar level of budget than under the previous 2G contracts.

This is up from £9.7m in 2006/07 as a result of Tranche 2 of the 3G Contracts coming on stream in the East Units.

Contract Price Fluctuation (CPF – an inflation index), applied to OC rates, reduced from £11.8m in 2006/07 to £6.1m in 2007/08.

This outturn reflects the cessation of 2G contracts on 31 March 2007 and the use of the 3G contract for all Units in 2007/08.