Agenda item

Purpose: to report on the forecast under or over spends against the Council’s approved capital budget. The report presents the forecast outturn position for financial year 2022/23 as at Quarter One.         

Resolved that Executive:

·         Approve the proposed reprofiling of £4.2 million of future expenditure from 2022/23 into financial year 2023/24.

·         Note the report.

This decision is eligible to be ‘called-in’.  However, if the decision has not been ‘called-in’ by 5.00pm on 29 September 2022, then it will be implemented.

Councillor Ross Mackinnon presented the report (Agenda Item 6), which detailed forecast under or over spends against the Council’s approved capital budget.

Councillor Mackinnon commented that he was happy to move that the Executive approve the proposed reprofiling of £4.2 million of future expenditure from 2022/23 into financial year 2023/24 and that the Executive note the report.

Councillor Mackinnon reported that the Executive was proud of the Capital Programme which invested in the future of the district with new schools, improved roads, an active transport infrastructure, new sports facilities and environmental projects. 

Councillor Mackinnon noted that the projected capital investment for the year was £64.8 million, a forecast underspend of £11 million against the revised capital budget.  It was noted that the underspend was as a result of delayed projects, the vast majority of which would be delivered in the next financial year.

Councillor Richard Somner observed that a lot of the work undertaken within his Portfolio was heavily reliant on partnership working and some of the projects had taken much longer than anticipated. 

Councillor Tony Vickers queried which planning applications were responsible for the delays related to the £2.1 million underspend on planning permissions, and sought more information about the Robin Hood Roundabout scheme in respect to how it was being funded and who the consultees were that were failing to respond. Councillor Mackinnon replied that the delayed planning permissions related mainly to the Downlands Sports Centre replacement which had been postponed by three months due to issues in establishing an agreed drainage scheme. With respect to funding of the Robin Hood Roundabout scheme, Councillor Mackinnon said he was not in a position to provide a full answer but would report back as soon as he was able to.

Councillor Jeff Brooks noted there was already slippage of £11 million in the first quarter, the vast majority of which would be reprofiled within the year but that only £4.2 million of future expenditure would be reprofiled into the following year which he felt was a significant amount going into the second year. Whilst it was understood there were supply issues, Councillor Brooks suggested that the 20% slippage in the first quarter did not demonstrate an ambitious or well-managed programme. Councillor Mackinnon pointed out it was not slippage within a quarter but was a forecast slippage at year-end based on developments that had happened in the first quarter and that the slippage might reduce throughout the financial year. 

Councillor Alan Macro referred to the SEMH/ASD Secondary Resourced Provision forecast £660k underspend and sought confirmation of this and the reason for the postponement of the Project Board which was scheduled to take place the previous week. Councillor Lynne Doherty said she would arrange for a written response to be made in relation to the postponement of the Project Board. In relation to the SEMH/ASD Secondary Provision, Councillor Dominic Boeck said there were delays due to the knock-on effects of the pandemic and availability of materials and contractors, but that there was a drive to bring the provision into service as quickly as possible and the cost of the project was expected to remain as budgeted. 

Councillor Macro commented that the Theale Station project had been delayed multiple times over the past ten years. Councillor Macro suggested that improvement was desperately needed as disabled people were unable to access the station and asked that the Council did all it could to avoid further slippage in the project. Councillor Somner agreed with Councillor Macro’s sentiment but commented that delays had occurred due to negotiations between Great Western Railway and Network Rail. Councillor Mackinnon added that the report indicated that the footbridge and lift was expected to be installed in either December 2022 or January 2023. Councillor Macro reported that he had received information from Officers that the project would be delayed until summer 2023. Councillor Mackinnon agreed to investigate. 

Councillor Erik Pattenden referred to the reprofiling of the Parsons Down Rationalisation Project and asked what the impact would be on the school’s operating costs. In addition, Councillor Pattenden further queried whether it was reasonable for extra costs incurred as a result of the delay to come from separate Council funds rather than from the school’s already over-stretched budget.  Councillor Mackinnon said he was not aware of the school’s individual budget but pointed out that the report detailed projects that were reprofiled from the previous financial year to the current and it was not necessarily the case that the project would be reprofiled into the following financial year. 

Councillor Adrian Abbs referred to the £4.2 million of reprofiling and asked whether it related to fixed-price contracts or whether costs could rise due to predicted inflation of between 10-20%. Councillor Mackinnon commented that whilst inflation was predicted to be nearer 10% than 20%, those projects not on a fixed-price contract would see a rise in costs. Councillor Abbs said that even at the lower estimate of inflation, £4.2 million would increase to £4.6 million and asked whether reprofiling would occur at the former or latter figure. Councillor Mackinnon said reprofiling would be based upon available budget data. 

Councillor Lee Dillon suggested that the report contain an additional section that provided commentary about the impact on residents and the financial impact for each of the projects with quarterly comparison. Councillor Mackinnon agreed to consider the suggestion.  With regard to providing a complete list of projects that were being reprofiled, Councillor Mackinnon commented that it might be quite lengthy but would give some thought as to how it could be presented and what overview could be provided.

Councillor Dillon requested that the black and white graphs and tables be produced in colour to make them easier to read. Councillor Mackinnon agreed to review.

Councillor Boeck thanked the Project Management Team for their effective delivery of some of the projects notwithstanding delays to others.

RESOLVED that: Executive

·         Approve the proposed reprofiling of £4.2 million of future expenditure from 2022/23 into financial year 2023/24.

·         Note the report.