Agenda item

To receive a report from the Executive Director Resources on the year end Capital Programme position, and requesting budget adjustments for the 2022/23 budget.

Councillor Leaver moved, and Councillor Caliskan seconded, the report.

Councillor Leaver introduced the report and noted which sets out the expenditure ending the 31^st March 2022. It contains an overview of the outputs of the Capital Programme in 2021/22 and how much was spent on the individual capital programmes, across the General Fund, Housing Revenue Account (HRA) and lent to the Council’s subsidiary companies. This will provide investments to residents as part of the Council’s 10-year Capital Programme. It requests budget amendments for the 2022/23 budget where there have been delays.

The Opposition made the following points in response:

Councillor Leaver was welcomed into his new Cabinet role.

Concerns were raised about the debt borrowing of the Council, rollover debts, and the sustainability of spending tax payers money in this way.

It was requested a strategy on inflation and the issues this may cause the Council.

The Council’s accounts show that the Council has lost money in the 2021/22 financial year near ten-fold in two years. It was felt that this money would be better spent on front line services as it has been brought by tax payers money.

The money not spent “gross slippage” will be spent later at a higher cost.

Concerns were raised around Metaswitch and the report highlighting a “budget error”. It was questioned whether tax payers are subsidising this error.

It was felt it was essential that a review and prioritisation takes place of the Capital Programme.

The Administration made the following points in response:

The report was welcomed.

Money had been spent on furniture in the Civic Centre as it is home to the Council’s staff.

The budget has considered the possibility of the increase in inflation and includes adequate head room for possible inflation.

The risks to the Council have been recognised and considered and are set out in the report.

Energetik’s performance is doing better than predicted in its business plan.

Money had been spent on floor alleviations and street scene which improve the borough.

Following the debate, the Report was put to a vote and AGREED.

AGREED:

1.         Increase the 2022/23 General Fund and HRA capital budget by £26.6m (rolling forward unutilised 2021/22 budgets). This is the net position of:

a.    a total of £41.43m 2022/23 budgets increasing due to programmes being delayed

b.    a total of £14.79m 2022/23 budgets being reduced to recognise where budgets have been spent early (in 2021/22), as detailed in Table 5 of the report.

2.         £13.74m additions to the approved programme, as a result of recognising additional grant funding, as detailed in Table 3.

3.         Transfer £2.48m usable capital receipts from General Fund to HRA to rectify capital financing for the construction of Alma Youth Centre, a General Fund asset, as required by accounting standards.

4.         Reprofiling £79.74m Meridian Water budgets (within the same total budget) using ‘budgets with both levels of approval’ before ‘budgets requiring secondary level of approval’.

NOTED:

5.         Total expenditure on the Capital Programme for 2021/22 was £198.6m, against the revised outturn forecast of £225.3m.

6.         The total reprofiling of £26.6m comprises of £15.5m General Fund (excl. companies), Companies £10.1m and £1.1m on HRA programmes;

7.         Funding of the Council’s capital expenditure for 2021/22, the largest elements of which were £98.8m borrowing and £51m grants, as detailed in Table 6 of the report.