Agenda item

Report of the Chief Executive

Cllr Pauline Church, Cabinet Member for Finance and Procurement, Commissioning, IT, Digital and Commercialisation presented the report which provided detail about the Capital Programme position Quarter 1 (30 June 2021) for the financial year 2021/22 with suggested actions.

Cllr Church informed Cabinet that the report includes the movements from the original budget set by full Council in February 2021 to the revised programme and sets out how the programme is forecast to be financed. The report  provided an update on the significant programmes planned to be delivered and those that have been reprofiled to future years.  The Q1 Capital programme is based on information as of 30 June and the report confirmed  the current forecast movement of approvals between years as schemes have been assessed and the spend profile recast.

Cllr Laura Mayes, Deputy Leader, welcomed the capital investment for schools and children’s homes and the progress of the Fostering Excellence Scheme.

Cllr Pip Ridout, Chair of the Financial Planning Task Group, informed Cabinet that the Task Group had considered the report at its meeting held on 10 September 2021. The new approach to reporting on the Capital Programme was very positive and the Task Group welcomed its continuation. Cllr Grant, Vice-Chair of the Task Group, commented on Task Group’s discussions about the Community Infrastructure Levy and noted that a report would be considered by Cabinet on 27 September 2021, allowing more detail about the Levy to be shared within the Capital Programme.

Cllr Ian Thorn raised question in relation to the following matters:

·       The assets that support the loan to Wiltshire College.  Cllr Church confirmed that a written response would be provided after the meeting

·       The relationship and impact on the Revenue Budget of underspends in the Capital Programme. Cllr Church confirmed that there would be a positive impact on the Revenue Budget if borrowing was reduced.

·       Unused borrowing. Officers detailed how the Council financed Capital schemes and their delivery. Cabinet noted that there was no intention to borrow funds this financial year.

Cllr Tony Jackson welcomed the investment in Silverwood Build programme and asked about the future of the other associated school sites and whether consideration had been given to the potential for revenue or housing development. Cllr Church explained that this would be a matter for future consideration as part of the Council’s estate strategy.

Resolved:

1.    Cabinet noted:

a.    the additional capital budgets of £16.881m that have been added to the 2021/22 programme under Chief Finance Officer delegated powers.

b.    the Grant amendment of £5.407m that have been added to the 2021/22 programme under Chief Finance Officer delegated powers.

c.    The reprofile of £38.816m of budgets into future years under Chief Finance Officer delegated powers.

d.    Budget Movements between Schemes.

e.    The revised 2021/22 Capital Programme as at quarter 1 of £224.555m; and

f.      The capital spend as of 30 June 2021 of £11.675m

2.    Cabinet is asked to approve:

g.    Approve £2.2m of the £5m ringfenced budget for Melksham House site so development can commence once planning consent is received subject to successfully securing £3.3m Levelling Up funding and remove the balance of £2.8m as no longer required.

h.    Remove £2.545m of budget allocated to Wiltshire College Loan as this has been accounted for through the balance sheet rather than the capital programme so is not required.

i.      Remove £0.075m of budget allocated to HRA Council House Build Programme Phase 1 as this has completed and is no longer required; and

j.      Approve transfer of up to £1.500m from “Other Capital Schemes to be approved” budget to match fund or, fully fund two new Children’s Homes.

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 2021/22 capital programme as at Quarter 1 (30 June 2021).