Agenda item

RESOLVED:  1)         That the outturn of the capital programme for 2021/2022 of £16,932,194 including Exempt Schemes be noted;

2)         That the financing arrangements for the 2021/2022 capital programme be noted;

3)         That the revised 2021/2026 capital programme and financing as detailed in the report be approved.

Reason for Decision

To report the outturn 2021/2022 for the Capital Programme and update members on capital spending and resources for 2021/2026.  Cabinet and those present under standing order 34 did not wish to debate the exempt pages of the report.

Click here to view the recording of this item on You Tube

Councillor Dickinson presented the Capital Outturn report for 2021-22. She drew attention to the underspend on capital the reasons for which were identified, the main one being the pandemic.  She reminded members that the projects may have slipped to future years, but not disappeared.

The Assistant Director – Resources explained the detail of the report which provided details of the outturn of the 2021/2022 capital programme and outlined amendments and rephasing to the spending on schemes, revising the programme for 2021/2026. The capital programme outturn for 2021/2022 totalled £11,529,573 (£16,932,194 including Exempt and Capital Loans) against an approved budget of £14,820,410 (£22,313,160 including Exempt and Capital Loans). It had been necessary to rephase a total of £4,043,620 (£6,014,020 including Exempt) of scheme costs to future years. Useable capital receipts generated in the year totalled £914,469.

The capital resources available to fund expenditure in 2021/2022 are detailed in section 3 of this report.

Under standing order 34 Councillor de Whalley referred to his earlier expression of concern on the Towns Fund timeframe was in relation to section 8 of this report.

Under standing order 34 Councillor Morley expressed concern at the level of re-phasing of the capital programme.   He did not consider the major project assurance process was fit for purpose.   He asked why the projects were not re focussed before coming to Cabinet.  He asked why the full levels were put into current years when it was unlikely to be done in the current year.  He drew attention to the risks for capital projects which needed to all be in sync.

The Assistant Director in response drew attention to the major housing scheme budgets which were currently being reviewed but couldn’t revise figures at this stage  until the review was completed but gave assurance they would be updated in due course.

Under standing order 34 Councillor Joyce commented that the situation was where the Council was.  He referred to the interest rates and inflation increases. He reminded member that caution had to be the key word in the current climate. 

Councillor Long referred to the slippage on Capital programmes which would always slip where not spent.  He referred to the fact that some of the projects were designed to be delivered over multiple years.  He reminded members that if the council didn’t have the aspiration to build and stuck to day to day projects it would be on track.   He referred to the new homes and commercial buildings that had been delivered.  He confirmed the figures were as they were.

Councillor Lawrence confirmed that the Councils accounting was not normal business accounting and it hadn’t been normal times.  He referred to the figures being based on a snapshot in time and the ability of members to amend the figures in the future if needed.  He commended the Assistant Director and her team for the production of the report.

Councillor Blunt concurred that projects often didn’t come in on budget or on time, he confirmed the need to continue to monitor and review.

Councillor Middleton commented on the difference between local government budgeting and business.  He confirmed it was usual to carry over to the following years any money not spent in the year.  He confirmed that the risk taken was measured risk.

Councillor Dickinson confirmed that in her long career in local government capital slippage was usual.  It was almost impossible to forecast exact budget, including on smaller domestic projects.

Cabinet and members under standing order 34 members did not wish to debate the exempt pages of the report.

RESOLVED:   1)         That the outturn of the capital programme for 2021/2022 of £16,932,194 including Exempt Schemes be noted;

2)         That the financing arrangements for the 2021/2022 capital programme be noted;

3)         That the revised 2021/2026 capital programme and financing as detailed in the report be approved.

Reason for Decision

To report the outturn 2021/2022 for the Capital Programme and update members on capital spending and resources for 2021/2026.  Cabinet and those present under standing order 34 did not wish to debate the exempt pages of the report.