Issue - meetings

Purpose: the report presents the provisional outturn position for financial year 2024/25 against the approved capital programme and financing implications for financial year 2025/26.       

Resolved that: Executive note

·         The forecast outturn position of planned expenditure of £62.1 million, generating a £4.1 million underspend.  During the course of the financial year it is not unusual for forecast expenditure to be reduced, resulting in a requirement for reprofiling.  Capital programme reprofiling occurs for a number of reasons, delays with projects through third party contractors, economic conditions and reprioritisation due to unforeseen events.  No capital expenditure is financed until it is incurred, protecting the capital financing budget which is funded through the revenue budget.  

That Executive approve:

·         The proposed reprofiling of planned expenditure from 2024/25 into 2025/26 of £7.6 million, detailed by service in appendix A.

·         The proposed transfer of Council funded expenditure budget totalling £2.8 million from 2025/26 into 2024/26 for support of the Northcroft Dry side Development Project. 

·         The proposed transfer of £801k of external funding from 2023/24 into 2024/25 to support delivery of the Newbury Town Centre Masterplan project. 

This decision is not subject to call in as:

·      a delay in implementing the decision this would cause the Council serious financial implications or could compromise the Council's position.

therefore it will be implemented immediately.

Councillor Iain Cottingham introduced and proposed a report (Agenda Item 6), which presented the provisional outturn position for financial year 2024/25 against the approved capital programme and financing implications for financial year 2025/26.

Councillor Cottingham noted that the predicted expenditure of £62.1 million was unlikely to occur due to resourcing pressures.

Councillor Jeff Brooks seconded the recommendations within the report and commented that Members were not preventing officers from recruiting staff, but it was a challenge to attract the correct people.

Councillor Ross Mackinnon queried whether resourcing had been considered when approving the Capital programme in March 2024. Councillor Cottingham reported that it had and noted that certain skills had become harder to recruit. 

Councillor Mackinnon suggested that with a £4 million underspend, work should be accelerated at Falkland School. Councillor Heather Codling responded that the programme was being accelerated and should be completed by September 2026.

Councillor Mackinnon queried whether a railing at his local primary school could be moved to protect the children. Councillor Brooks agreed that an officer from small works would contact him in relation to the matter.

Councillor Adrian Abbs requested further information relating to the Dryside works at Northcroft Leisure Centre. Councillor Nigel Foot explained that the works related to an internal refurbishment and re-organisation within the existing footprint of the building managed by Everyone Active. It was noted that the squash courts would be removed but that alternative courts were available at Kennet Leisure Centre.

Councillor Howard Woollaston queried how money borrowed from the PWLB was being spent. Joseph Holmes, Executive Director for Resources, reported that the Council had an underlying borrowing need which had led to short-term borrowing due to high interest rates, however it was likely that substantial borrowing would be undertaken in future years to fund the capital programme, and capital schemes that had taken place. Councillor Cottingham noted that the Council’s cash requirements were greater than the profit and loss accounting, and consequently there were cash requirements in excess of accruals from an accounting perspective.   

RESOLVED that: Executive note

·       The forecast outturn position of planned expenditure of £62.1 million, generating a £4.1 million underspend. During the course of the financial year it is not unusual for forecast expenditure to be reduced, resulting in a requirement for reprofiling. Capital programme reprofiling occurs for a number of reasons, delays with projects through third party contractors, economic conditions and reprioritisation due to unforeseen events. No capital expenditure is financed until it is incurred, protecting the capital financing budget which is funded through the revenue budget.

Executive approve:

·       The proposed reprofiling of planned expenditure from 2024/25 into 2025/26 of £7.6 million, detailed by service in appendix A.

·       The proposed transfer of Council funded expenditure budget totalling £2.8 million from 2025/26 into 2024/26 for support of the Northcroft Dry side Development Project.

·       The proposed transfer of £801k of external funding from 2023/24 into 2024/25 to support delivery of the Newbury Town Centre Masterplan project.