Issue - meetings

To receive a report from the Chief Executive and Deputy Chief Executive.

Cllr Nick Botterill, Cabinet Member for Finance, Development Management, and Strategic Planning, presented a report which provided details of the capital budget monitoring forecast for the second quarter of the financial year 2023/24, based on the position at the end of September 2023.

It was stated that the forecast of capital spending for the year had increased to approximately £195m. Whilst that level might not be reached due to the complexity of capital forecasting, it was noted the accuracy of the forecasting had significantly improved and it was anticipated the level would be increased from 2022/23. It was also added that 33% of the budgeted capital had been spent at the end of the quarter versus 25% in the previous year.

Cllr Botterill also clarified that much of the capital programme was grant funded with no direct impact on revenue, and that the programme was focused on updating and modernising services such that delays would increase revenue costs.

The Leader welcomed the improvements in more realistic capital forecasting in recent years. He also noted that many other councils of all political persuasions had made risky decisions on what to spent borrowed capital on, or at unsustainable levels, which was not the case in Wiltshire. He noted the importance of training on capital budgeting and how programmes were needed to be scheduled to achieve targets.

Cllr Pip Ridout, Chairman of the Financial Planning Task Group, provided details of questions the Task Group had asked of officers, including on implications of any underspend on borrowing. Further information was being sought in relation to the Stone Circle companies.

Cllr Gordon King and Cllr Ian Thorn acknowledged the improvement in the capital updates.

Cllr Gavin Grant commented that it was likely the current £195m forecast would not be achieved, and drew attention to shortages in supply chains increasing risks for capital projects. He stated he had requested the Director of Finance and Procurement consider elements of a further scrutiny process about projects relating to government grants and those relating to council borrowing.

At the conclusion of discussion, it was then,

Resolved:

Cabinet noted

a)    the additional budgets added to the programme of £1.544m under Chief Finance Officer delegated powers;?

b)    the movement of £8.848m of budgets into future years under Chief Finance Officer delegated powers;?

c)    the budgets brought forward from future years into the 2023/24 programme totalling £7.489m under Chief Finance Officer delegated powers;?

d)    budget movements between schemes;?

e)    the revised 2023/24 Capital Programme forecast as at quarter two of £194.961m; and,?

f)     the capital spend as at 30 September of £66.180m ?

Cabinet Approved

g)    The grant income applied for and/or received as set out in Appendix C and Appendix D?

Reasons for Decision

To inform effective decision making and ensure sound financial management as part of the Councils overall control environment.

To inform Cabinet on the financial position of the Council on the 2023/24 capital programme as at quarter two (30 September 2023).