Capital adjustment account

Commentary and statistics

The Income and Expenditure account is charged with a depreciation charge for the use of assets with a finite life (eg, vehicles). They are however excluded when determining council tax and the corresponding movement on the general fund balance and therefore have to be removed, and are replaced by a provision for the repayment of debt.

New regulations came into force on 31 March 2008 which require a larger provision for debt repayment if unsupported borrowing is used to acquire vehicles or equipment. Currently vehicles and equipment are not financed through borrowing and so the authority's debt repayments are made at the minimum level of 4% required by legislation.

Revenue budget


Actual		Original	Revised	Budget
2009/10		2010/11	2010/11	2011/12
£'000		£'000	£'000	£'000
-2,572	Reversal of depreciation net of deferred govenment grants released,	-2,588	-2,588	-2,902
	amortisation and impairment of fixed assets
602	Statutory provision for debt repayment	614	613	726
-	Deferred charged written down	-	-	-

-1,970	Net expenditure inc in Income and Expenditure Account	-1,974	-1,975	-2,176