To consider amendments to the Capital Programme as set out in the report.

The Portfolio Holder for Finance presented a report to seek approval of the amended capital programme, pages 147 to 176 of the Agenda refer.  A copy of the Q3 Finance Report 2023/24 is attached at Appendix A.

The report provided information on the forecast full year financial performance at 31 December 2023 and was detailed at Appendix A on 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.

During his introduction, the Portfolio Holder for Finance provided further detail on the following areas as set out at Section 2.1 to 2.6 of the report, pages 148 to 149 refer.

·       General Fund Provision Outturn

·       Savings Target

·       Internal Drainage Boards

·       Reserves

·       Capital – General Fund

·       Treasury Management

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:

·       Councillor Leonard referred to the progress against approved budgets for Towns Fund Projects, pages 165 to 166 of the Agenda refer.  It was queried why so many of the projects had been delayed.

In response, the Portfolio Holder for Finance stated that some of the projects had not progressed as fast as originally anticipated.

·       Councillor Simpson raised concerns that the projects were not moving forward faster and queried what steps the Council was taking to monitor this as the cost of materials continued to rise and the Towns funding was slipping away.

In response, the Leader of the Council assured Members that all of the Towns Fund Projects were carefully project managed and also had risk assessments against them in terms of delivery through the Connected Coast Board.  The significant cost of living crisis had affected the prices of materials and labour in a very short period, however confirmed that although delayed, most of the projects were underway and were well monitored.

Councillor Kirk added that the building cost pressures had added 30% to many of the projects he had brought to Council and had to be re-modelled to ensure that they came in under the agreed costs, and whilst frustrating it would be better reported as a delayed completion.

·       Councillor Makinson-Sanders referred to the loans to Invest East Lindsey (IEL) and stated that there were a number that had not been paid back, or on time.  It was further highlighted that interest earned on these loans in the current financial year to 31 December 2023 was £118,019, page 169 of the Agenda refers.  Therefore, as IEL was a trading arm of the Council it was considered that this amount should be attributed to the Council.

In response, the Portfolio Holder for Finance explained that Invest East Lindsey was a Local Authority Trading Company (LATCo) which had borrowed money from the Council and had to be paid back at the agreed rate of 4% and this had been complied with.

Following which the recommendation was duly Proposed and Seconded.

Upon being put to the vote, it was

RESOLVED

That the Capital Programme be amended taking into account the changes set out at Table 4a of Appendix A to the report presented.

N.B.  Councillor Colin Davie left the Meeting at 6.06pm.