Agenda item

To receive the Financial Year 2023/2024 - Quarter One Capital Budget Monitoring report of the Chief Executive, considered by Cabinet on 12 September 2023 as well as a report from the Financial Planning Task Group, following its meeting on 8 September 2023.

The Chairman noted that in the agenda was a report which set out the Capital Programme for 2023/24 as of 30 June 2023 for the first quarterly budget monitoring period. It included the movements from the original budget set by Full Council in February 2023 to the revised programme and sets out how the programme was forecast to be financed. It provided an update on the significant schemes that were planned to be delivered and those that had been reprofiled to future years.

It was noted that the report had been considered by Financial Planning Task Group on 8 September and Cabinet on 12 September. A summary of the Task Group’s discussions was provided in a report in the agenda pack.

Cllr Nick Botterill, Cabinet Member for Finance, Development Control and Strategic Planning stated that there has been an awareness of overprogramming, with attempts having been made to improve this, in some places down to new systems. It was noted that initial concern had been raised when it identified that Highways had only spent 7% of the budget in place, however assurance had been made that this was down to the systems in place rather than contracts and other issues. Furthermore, it was updated that an additional £10million had been allocated to Highways as this had been an area requested by residents, with hope that a second tranche of spending would follow, should the initial £10million be spent properly with value for money received.

The following comments were made by Lizzie Watkin, Director of Finance, who stated that the report was still showing the programme as having £189million deliverability, when historical experience shows that this sits at £120million. The importance of knowing the revenue implications of programmes, particularly in relation to schemes funded by borrowing was stressed, as well as the impact on cashflow forecasting, which would also affect treasury management. Attention was drawn within the report to where money had been prudently set aside to offset loans for Stone Circle Housing work; with it noted that within other local authorities there had been issues of not setting aside money for more complex investments.

Cllr Pip Ridout, Chair of the Financial Planning Task Group (FPTG), stated that the new system had been encouraging and more accurate when considering capital with it difficult to ever be fully accurate due to affecting factors. Praise was given to the Finance Team for improving the reports and providing them in a phased manner for a better approach.

The following comments were received by Members of the Committee, including that it might be worthwhile for Members to see the data presented in a format that separated capital underspend and revenue implications, to improve ease of understanding of where savings had been achieved within actual spend. Clarity was sought regarding the number of households in temporary accommodation increasing, with further clarity sought on the accommodation types being used and the cost; to which it was stated that this would be referred to officers with a response to be included within the minutes.

At the conclusion of discussion, it was,

Resolved:

The Overview and Scrutiny Management Committee agreed:

1.    To note the capital programme position as set out in the report, the comments of the Financial Planning Task Group.