To consider an amendment to the Council’s Capital Programme.

The Portfolio Holder for Finance presented a report to enable consideration of the current financial position for the Council at the end of the first quarter of 2023/24 forecasting to the year end.

During his introduction the Portfolio Holder for Finance highlighted that it was important to ensure the Council’s forecast financial position for 2023/24 was considered and related decisions approved and that Council was aware of the financial position of the General Fund to ensure that it could make informed decisions that were affordable and financially sustainable for the Council.

The report provided information on the forecast full year financial performance at 30 June 2023 and was detailed at Appendix A for the following areas:

• The General Fund Revenue Budget,
• The General Fund Reserves Position,
• The Capital Programme for 2023/24, and
• The Treasury Management Performance for the year.

Further detail was also provided on the General Fund Provisional Outcome, Savings Target, Internal Drainage Boards, Reserves, Capital – General Fund and Treasury Management, pages 60 to 61 of the Agenda refer.

Following which the recommendation was duly Proposed and Seconded.

Members were invited to put their comments and questions forward and during discussion the following queries and comments were made:

A Member referred to the legal cost provision at £50k for Kingfisher Caravan Park, Section 2.1, page 63 of the Agenda refers and queried whether this related to what was coming down the line by former users of the site.  In response, the Portfolio Holder for Finance confirmed that this was correct.

A Member queried what set ELDC apart from other councils financially, given the current financial turbulence.  In response, the Portfolio holder for Finance explained that the current inflationary situation was working in the Council’s favour, largely because of the amount of money in the account from the Towns Fund projects.  As there had been some delay in dispersing the funds the Council was able to invest this at quite significant interest rates and the budget for investment income had increased by £1.4m.  In addition, the business rates situation where the Council had required a significant hereditament was generating a significant amount of funding and an unexpected amount of income in the coming financial period of £10m.

A Member referred to Table 4, page 70 of the Agenda refers and asked for clarification whether the Council was spending £11m on Climate Change projects in the first quarter and what the projects related to.  In response, the Section 151 Officer advised Members that it included the Green Home Grants in the Capital Programme and in May 2023 the Council approved a further £5.6m, including HUG2 grants and LAD1 grants, however advised that some of the funds had not yet been fully dispersed as the Council was awaiting guidance from government.

In conclusion, the Leader of the Council stated that the Council was in a good position financially and this was as a result of good management of the funding received.  Challenges had been dealt with along the way and it was down to the Conservative administration that the Council’s finances had been well-managed and was a credit to the numerous Portfolio Holders for Finance and Section 151 Officers during this time and the current efforts of the Finance Team.

RESOLVED:

That the Capital Programme, to take into account the changes set out in the report at Appendix A – Table 4 which included slippage, additions and changes to the previously reported programme be amended.