Agenda item

Report of the Head of Finance

The Strategic Director of Resources presented the report.

In response to a Member’s concern that inflation was eroding the organisation’s capital position, the suggestion that it may be particularly desirable to act speedily in this environment, and an inquiry into what readily available projects which benefitted the community were open to the organisation, the Strategic Director of Resources concurred that speed was of crucial importance in the current inflationary moment. He added that capital governance processes had been improved so that more robust proposals were coming forward around scheme delivery and timings. He also added that he would inquire with Team Managers about any speedy and readily available projects.

In response to a Member question about whether the unspent money could have been invested in a more lucrative manner if this underspend had been known at the time, the Strategic Director of Resources cautioned that throughout the last financial year interest rates were raising and returns on investments were similar over a few months, a year, or two years; the organisation, he stated, would not have seen much uplift. The Strategic Director then advised that the organisation focused on making sure investments were relatively liquid and low risk when managing the Capital Fund.

In response to inquiries from a member about whether underspending was a longer term pattern, and the effects this had on services, The Strategic Director of Resources advised that he had not been employed at the organisation too long so would have to qualify his comments, but noted that there was a pattern of underspending. The Strategic Director also advised that the framework within which he operated was agreed by Members. The Council were looking, he added, to spend the unspent funds on the same sorts of things, but in the following financial years. The organisation was also investigating how money could be better spent in medium term schemes.

The Strategic Director of Communities advised that there were procedural changes underway in the Housing repair services, they were suffering resource deprivation but were working to rectify this. The new budget recognised that financial and delivery capacities would be more accurately considered moving forward.

In response to the expression of concern from Members regarding inflationary pressures and the risk of housing stock becoming dilapidated, the Strategic Director of Communities advised that reports regarding such concerns would be returning to scrutiny.

The Strategic Director of Resources advised that the accuracy of the forecasts and the effects of procedural reforms would become evident in the quarterly finance reports.

In response to a Member inquiry about the possibility of accelerating the growth of the organisations housing stock, in the face of the budgetary latitude to do so and the demand for housing in the district, the Strategic Director of Communities set out the organisation’s historical approach to housing strategy asset management. He then advised that a new medium-term strategy was being developed, and would come before members later this year.

In response to a procedural question from a Member, the Strategic Director of Resources explained that it would be the decision of the Council which guided them on how to split between new-build and strategic maintenance.

Following a discussion on the wording of the recommendation, it was agreed by affirmation of the meeting that the word ‘endorsed’ be replaced with the word ‘noted’.

It was moved by Councillor Bigby, seconded by Councillor Lambeth and

RESOLVED THAT:

The Provisional Outturn Report for 202/23 approved by Cabinet as detailed at Appendix A be noted.