Agenda item

The Leader’s Portfolio

To consider report FIN/672 of the Head of Corporate Finance, which was referred to the meeting of the Overview and Scrutiny Commission on 25 November 2024.

RESOLVED

That the Cabinet:

a) notes the projected outturn for the financial year 2024/2025 as summarised in report FIN/672.

b) approves the capital virement of £204k from the ICT Replacement Reserve to the People Systems Programme (PSP) project.

c) approves the capital virement of £550k from the Green Tech Business Grants project to the Innovation Centre Project within the Towns Fund programme.

d) approves the delegation to the Head of Corporate Finance, in consultation with the Leader to approve a capital virement from the property reserve to cover the costs of fit out and related work at Ashdown House, up to the limit of £1.3m (as detailed in paragraph 8.8 of report FIN/672).

Reasons for the Recommendations

To report to Members on the projected outturn for the year compared to the approved budget.

The Leader presented report FIN/672of the Head of Corporate Finance. The report set out a summary of the Council’s actual revenue and capital spending for the quarters to September 2024, together with the main variations from the approved spending levels and impact on future budgets. The Cabinet were informed that, in respect of the revenue account, there was a projected surplus of £410k which is a favourable turnaround from the previous quarter and that was mainly due to better than anticipate income from interest on investments, of £2.167m. On the HRA, the predicted overspend at the end of Quarter 2 was £976k compared to £151k at the end of the previous quarter. It was noted that was due to expenditure on responsive repairs.

Councillor Ayling presented the Overview and Scrutiny Commission’s commentson the report to the Cabinet following consideration of the matter at its meeting on 25 November 2024, which included noting that the slippage of the capital programme (mostly as a result of water neutrality) had resulted in higher balances from higher interest payments, but has impacted our ability to increase the Council’s housing supply and ease temporary accommodation pressures. The Commission had sought clarification over planning income, along with the flexible housing support grant and the changes to Right to Buy and had sought additional information on the options considered with regards to Ashdown House which would balance income to be received and the works required.

Councillor Crow was invited to speak on the item. Matters raised including that there had been a significant slippage in the capital programme and that the report indicated that was a result of water neutrality issues. He questioned why that had not been picked up in the capital programme forecasting, as water neutrality was not a new issue. On Ashdown House he asked for reassurance that the proposed capital investment was seen as a good investment longer term compared to disposal.

Both the Leader and Head of Corporate Finance responded to the points raise by Councillor Crow, confirming that, in respect of Ashdown House, all avenues had been considered and the approach highlighted in the report was deemed to be the most adventurous for the Council long term. Officers were constantly keeping a track of our capital programme and the vast majority of the delays were down to the knock on effects of water neutrality issues. Also, it was confirmed that the additional investment income was not purely down to capital slippage but as a result of good long term investment, as shown in the Treasury Management report.

Councillor S Mullins spoke as part of the discussion on the report.