Agenda item

Purpose: To present the provisional capital outturn for the Council in respect of financial year 2018/19. 

RESOLVED that the capital provisional outturn position and the level of budget to be carried forward to 2019/20 should be noted.

This decision is not subject to call in as the report is to note only therefore it will be implemented immediately.

The Executive considered a report (Agenda Item 8) which presented the provisional capital outturn for the Council in respect of financial year 2018/19. It was an ambitious programme and unlike the revenue budget, could be carried forward to future years.

Total capital expenditure in 2018/19 was £81.3 million against the £89.9 million budget, an overall underspend of £8.7 million or 9.7%.  Capital Strategy Group on the 9th May had reviewed the outturn in detail and proposed that £8.57 million be carried forward into 2019/20 to enable the continuation of schemes already underway and to help fund any emerging pressures in the capital programme.

Councillor Dominic Boeck reported that the reason for the underspend in the Education capital budget was due to the delays affecting Highwood Copse and Theale Primary Schools.

Councillor Hilary Cole advised that the underspend in the Development and Planning Service was due to the Council not being able to identify suitable properties in-year for temporary accommodation but she offered reassurance that three properties were planned for purchase in 2019/20. It was important that temporary accommodation was in a location with good access to local services and amenities.

Councillor Lee Dillon asked for more information on the emerging pressures the capital programme would be required to fund. Regarding the Disabled Facilities Grant (DFG) and the Home Repair grant, he asked whether the underspend would have to be returned to the government and whether the Council was doing enough to promote the scheme. The capacity challenges in the Public Protection and Culture Service were noted and Councillor Dillon asked how ambitious projects which aligned with the Council’s zero carbon ambitions would be delivered. He also stated that in his view it would be prudent to review the Property Investment Strategy.

Councillor Lynne Doherty agreed that it was timely and appropriate to review the Property Investment Strategy. Regarding the emerging pressures, she believed these were likely to arise from the schools’ projects but would confirm in writing.

Councillor Graham Bridgman believed that the DFG underspend would be carried forward by the Council, but would confirm in writing. He added context that the 2019/20 DFG budget was £1.68m so the £167k underspend was only a small proportion.

Councillor Steve Ardagh-Walter shared Councillor Dillon’s concerns regarding the Public Protection and Culture team’s capacity and confirmed that this would be looked into.

Councillor Dillon noted that there was an overspend of £51k in respect of legal costs associated with the London Road Industrial Estate redevelopment and requested a breakdown of what costs had been anticipated.

Councillor Erik Pattenden asked what had caused the £106k underspend from the culture budget. Councillor Rick Jones advised that he would provide a written answer.

RESOLVED that the capital provisional outturn position and the level of budget to be carried forward to 2019/20 should be noted.

Given the political and economic uncertainty at present, the Property Investment Strategy would be reviewed as scheduled.

Reason for the decision: to present the provisional capital outturn for the Council in respect of financial year 2018/19.

Other options considered: None.