1.2.1 Property - Income from property sales was £0.6 million below budget mainly due to the delay in the sale of slice sites. Clawback income, however, exceeded budget by £1.9 million where an earlier than anticipated development of a former British Coal property (Woodlaithes Farm) contributed £1.2 million. Rental and other income also exceeded budget with most of the £0.6 million being attributable to the extension of the tenancy of Queens House, Sheffield and delays in the CARS 7 disposals programme.
Total expenditure at £13.6 million ended the year £3.4 million below budget with the majority of the underspend arising on property management costs. Leasehold surrenders were £2.7 million below budget due to delays in British Oak, Weaste, Creswell and the curtailment of Snowdown negotiations. Further underspends of £0.9 million arose on opencast rehabilitation with the delay by Leeds City Council in awarding the contract for Skelton Bridge being the main reason.
1.2.2 Environment - Net cost at £8.7 million exceeded budget by £0.8 million. the new minewater schemes programme was advanced, where possible, particularly land purchases and site investigations resulting in above budget spend of £422,000 with similar action also taken in advancing works on static liabilities. Further overspends arose on operational schemes, particularly at Ynysarwed and Caphouse where higher than anticipated spend on pumping and pump repairs was incurred.
1.2.3 Subsidence - There was an underspend of £1.3 million on outsourced management during the year where the number of residential claims received and resolved were well below budget levels. Overspends on contractors due to unbudgeted costs for Breeston Bridge and Walker and Partners together with above budget expenditure on consultants for arbitration cases helped to reduce the overall underspend to £0.9 million.
1.2.4 Licensing - A net cash surplus of £19,000 was achieved, some £15,000 above budget. Application and Annual Fees exceeded budget by £98,000 but were offset by a shortfall in Part II retentions arising from the lower than anticipated coal production levels.
1.2.5 Mining Information - The net cash surplus for the year was £0.8 million, some £94,000 below budget. Income exceeded budget with a record output of 392,000 reports, but there were overspends on damages and legal costs where a number of longstanding shaft cases were settled and on ordnance survey costs due to the increased activity. After charging depreciation of £1.1 million, the mining information function made a trading deficit of £0.3 million.
1.2.6 Other Departmental Expenditure - The net cost of colliery closures and security funds amounted to £2.15 million mainly due to unbudgeted releases of security for Annesley/Bentinck, Hatfield and RJB Mining plc collieries following re-assessment of the liabilities.
1.2.7 Non-Departmental Adjustments - The delay in the commencement of the new Records building at Berry Hill resulted in a shortfall in capital expenditure. The variance of £3.2 million in the movement on working capital arises from the delays in the receipt of clawback payments and a greater than expected reduction in creditors particularly in the balance of unpaid invoices and year-end subsidence accruals.
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