Decision details

(Cabinet Member with Special Responsibility Councillor Hamilton-Cox)

Cabinet received a report from the Chief Finance Officer that provided information regarding the latest position regarding the delivery of the approved capital programme for 2024/25. It also set out information regarding any delays surrounding capital expenditure and other matters for Members’ consideration.

As the report was for consideration and progressing to Full Council, no alternatives were put forward.

An amended Appendix D had been circulated and published prior to the meeting.

Councillor Hamilton-Cox proposed, seconded by Councillor Wood:-

“That the recommendations, as set out in the report, be approved.”

Councillors then voted:-

Resolved unanimously:

(1)        That Cabinet endorses the adjustments to the capital programme as set out in Appendix C of the report and refers to Council for full approval.

(2)        That Cabinet notes that relevant revenue adjustments in respect of minimum revenue provision and future borrowing requirements will be built into projected revenue estimates and considered alongside future reports to Cabinet in respect of the budget and policy framework updates.

(3)        That Cabinet endorses the use of capital receipts to fund the acquisition of properties and other additional works identified within the Housing Revenue Account subject to it having a nil impact on the net position of the account.

Officer responsible for effecting the decision:

Chief Finance Officer

Reasons for making the decision:

The Capital and Revenue Programmes forms part of the Council budget framework.

Although the General Fund and Housing Revenue Account were able to respond to the financial challenges in 2023/24 and maintain balanced budget positions by utilising its reserves, this does not mean that the financial issues for the Council are resolved, it simply means that the in-year budget pressures were addressed. To put into context, a budget gap of £1.4M is still forecast for 2025/26 and this rises annually to £4.6M in 2028/29 for which the cumulative effect is not sustainable.

Reviewing the Capital Programme will allow for more robust revenue projections which in turn will improve financial planning. This will ensure that funds are allocated according to a set of predefined outcomes, or priorities to ensure that funds are directed toward the Council’s key ambitions and statutory functions and away from areas which contribute less or not at all against the predetermined objectives.