Decision details

The Chairman invited Cllr Nick Botterill, Cabinet Member for Finance, Development Management, and Strategic Planning, to introduce the report and recommendation.

Cllr Botterill noted the projected underspend set out in the report, and that the high needs reserve would be increased due to the pressures on SEND being one of the major financial risks for the council. It was emphasised that the remaining projected underspend would be directed to other priorities, with a further £5m allocated for Highways, bringing the additional highways funding to over £20m.

It was also stated that the council was in control of its finances due to clarity of purpose from the administration, a clear business plan to deliver on priorities including investment in transformative and preventative actions. Attention was also drawn to improvements in capital budget forecasting and prudent financial management to reduce the cost of borrowing.

Cllr Botterill moved that the report be noted, which was seconded by Cllr Richard Clewer.

Group Leaders were then given the opportunity to comment.

Cllr Richard Clewer, Leader of the Council, highlighted the importance of prudent financial management to enable long term financial health, lower borrowing costs, and permit additional needed investments. He noted many councils were experiencing budgetary difficulties, in part due to poor treasury management.

Cllr Ian Thorn, Leader of the Liberal Democrat Group, welcomed the report, though also suggested revenue and capital outturns could also be received at Council as well as Cabinet. He supported praise for the council’s officers and the positive treasury management which had taken place, and welcomed increased investment in highways, noting the group had raised the problem particularly with potholes previously.

Cllr Ernie Clark, Leader of the Independent Group, added his thanks to officers for their treasury management work.

Cllr Ricky Rogers, Leader of the Labour Group, welcomed the report particularly in the economic climate many councils were facing. He hoped that there was capacity to take on the additional highways works funding would permit.

The item was then opened to wider debate. In addition to the recommendation Members raised points relating to general financial management, revenue, and capital outturns.

Comments were made praising the budgetary underspend and associated increased investment in highways, with details provided of the number of projects which could be advanced and the work which would be undertaken on C and unclassified roads. However, there were also comments on the current state of the roads and how it had developed to that point, whether funding could also go towards reducing backlogs with local highways projects, the need for additional investment in youth services, and other priorities for the council such as cultural support.

There were also comments on loans from the Public Works Loan Board, the opportunities taken to borrow at low interest rates, the council’s stable financial position, and high engagement with scrutiny and clear reporting.

At the conclusion of debate Cllr Botterill responded to comments made, including that some of the underspend was due to one off factors, that the council was spending additional resource in the most effective areas and priorities, that capacity constraints had an impact on delivery, and further stressed the importance of treasury management resulting in lower borrowing costs.

It was then,

Resolved:

That Full Council note that the contents of the report are in line with the Treasury Management Strategy 2023/24.

In accordance with the Constitution there was a recorded vote.

Votes for the motion (80)

Votes against the motion (0)

Votes in abstention (1)

Details of the recorded vote are attached to these minutes.