Agenda item

Cabinet Member: Finance

Forward Plan Ref: 2020/030

Contact: Hannah Doney, Head of Corporate Finance Tel: 07584 174654

Report by Director of Finance (CA7).

The report is the provisional capital programme outturn position for the 2019/20 financial year and focuses on the capital spending against budget allocations within 2019/20 and the financing of this capital investment.

The Cabinet is RECOMMENDED to note the provisional capital outturn for 2019/20 as set out in the report.

Cabinet had before them a report on the provisional capital programme outturn position for the 2019/20 financial year that focused on the capital spending against budget allocations within 2019/20 and the financing of this capital investment.

Councillor Glynis Phillips, Shadow Cabinet Member for Finance commented that it was unusual see an underspent budget and highlighted that the majority of the underspend was because of shortfalls in meeting the Housing & Growth Deal programme and OxLEP related schemes.  She referred to confidence expressed in the report that the later years of the Housing &

Growth deal would see a significant increase in spend levels and queried on what that confidence was based. In particular as the delivery of this programme rested with the districts Councillor Phillips questioned  why there was a belief that house building numbers would increase in future years.

Councillor Phillips went on to query the slippage in the Highways Asset Management Plan most of which related to the Street Lighting LED Replacement Programme. She queried whether actions outlined in previous reports to provide additional capacity were in place in order to deliver

within the original timeframe? This was important not just because of the financial savings but because of the reduced carbon emissions from LED streetlights.

Councillor Phillips sought an example of the type of works referred to in relation to the slippage on a number of bridge works to allow delivery of emerging higher priority schemes.

On  broad band provision in paragraph 24 of the report Councillor Phillips found it shocking to read that there was no spend on the Businesses in Rural Oxfordshire Programme in the last financial year and queried whether this had been a conscious decision.

In relation to Paragraph  27 of the report on slippage against the original programme relating to Fire Protective Equipment and the additional capitalisation on Fire and Rescue replacement services Councillor Phillips expressed worry that savings had been made on Fire Protective Equipment and sought more detail.

As the local member Councillor Phillips queried when the school in

Barton Park, was to be opened.

Finally, Councillor Phillips highlighted paragraph 4 of the report advising that previous reports had reflected expected programme spend as opposed to individually agreed schemes which explained why the expected programme spend of £218.5m is an over estimate. She asked that future reports make it clear which schemes are expected programme spend and which are agreed programme spend? This would explain any differences in the year

end position.

Councillor Bartholomew, moved the recommendations.

Cabinet Members responded to the points raised:

·         Councillor Corkin, Cabinet Member for Council Business & Partnerships, on the Businesses in Rural Oxfordshire Programme advised that this was fully external funding and that it had taken time to get the governance in place. There were two selected suppliers, the programme was up and running and on track to finish by June 2021.They were confident of meeting the expected targets and the only unknown was the impact of coronavirus.

·         Councillor Lindsay-Gale, Cabinet member for Education & Cultural Services confirmed that Barton Park School would be ready to open in September 2020.

·         Councillor Heathcoat, Deputy Leader of the Council referring to the query on protective equipment explained that economies of scale had been possible through Oxfordshire, Buckinghamshire and Berks joining together in their purchasing. Councillor Heathcoat gave an assurance that there was sufficient fire protection equipment for OFRS needs.

·         Councillor Walker, Cabinet Member for Highways Operations and Delivery, indicated that on street lighting they were in the process of sourcing an additional contractor and that energy saving schemes would be prioritised.

·         Councillor Constance responded to specific questions relating to the Growth Deal and slippage on the Highways Asset Management Scheme

RESOLVED:             to note the provisional capital outturn for 2019/20 as set out in the report.