Agenda item

Cabinet Member: Finance

Forward Plan Ref: 2024/140

Contact: Kathy Wilcox, Head of Financial Strategy

Kathy.wilcox@oxfordshire.gov.uk

Report by Executive Director of Resources and Section 151 Officer (CA14)

The Cabinet is RECOMMENDED to:

a)    note the performance against the capital programme for 2023/24 as set out in the report.

b)    approve the creation of a new reserve to support the development of green financing and to make an initial contribution of £1.0m funded from the interest released at the end of 2023/24 (as set out in paragraph 65).

Cabinet received a report on performance relating to the Capital Programme for 2023/24.

The ten-year Capital Programme set out the agreed capital investment to deliver the priorities identified in the council’s Capital and Investment Strategy.  This report updated members on the performance against the programme shown in the latest monitoring report for2023/24 and also compared back to the capital programme agreed by Council in February 2023.  Figures shown reflected those to be included in the Council’s Statement of Accounts for 2023/24.

Councillor Dan Levy, Cabinet Member for Finance, presented the report.  He summarised the main areas of expenditure including the Pupil Place Plan, Major Infrastructure, Highways Asset Management Plan, Property Strategy, IT, Digital & Innovation Strategy.

The report proposed the creation of a new reserve to support the development of green financing and to make an initial contribution of £1.0m funded from the interest released at the end of 2023/24. This was to help the council achieve its climate action goals and invest in low-carbon projects.

During discussion, members welcomed the funding for Zero Emissions Buses Regional Area project where 75 buses had been delivered in total with 65 buses operational on routes around Oxford. An additional 84 buses would be delivered by August 2024. In addition to County Council funding, the project had drawn in a considerable amount of inward investment. Members also referred to the investment in Children’s homes which would help reduce the costs of outplacement to areas outside the County.

Councillor Levy moved and Councillor Howson seconded the recommendations, and they were approved.

RESOLVED to:

a)    note the performance against the capital programme for 2023/24 as set out in the report.

b)    approve the creation of a new reserve to support the development of green financing and to make an initial contribution of £1.0m funded from the interest released at the end of 2023/24 (as set out in paragraph 65 of the report)

Here's a summary of the document:

Main ideas:

·   The report shows the capital spending and funding of the council for 2023/24: The report compares the actual capital expenditure and financing of the council for 2023/24 to the original and latest budget plans. It also highlights the main programmes and projects that were delivered or in progress during the year.

·   The report recommends the creation of a new reserve for green financing: The report proposes to approve the creation of a new reserve to support the development of green financing and to make an initial contribution of £1.0m funded from the interest released at the end of 2023/24. This is to help the council achieve its climate action goals and invest in low-carbon projects.

·   The report details the performance of the capital programme by strategy area: The report provides a summary of the actual expenditure for each strategy area, such as Pupil Place Plan, Major Infrastructure, Highways Asset Management Plan, Property Strategy, IT, Digital & Innovation Strategy, Passported Funding, and Vehicles & Equipment. It also explains the reasons for the variations between the latest and original budget plans, and the impact of external factors such as inflation, grant availability, and delivery timelines.

·   The report identifies the risks and challenges for the capital programme: The report acknowledges the risks and challenges that affect the deliverability and cost of the capital programme, such as the uncertainty over future capital receipts, developer contributions, and grant funding, the ability to meet the deadlines for grant spending, and the outcome of the public inquiry for the HIF1 programme. It also describes the governance measures that are in place to manage these risks and ensure the capital programme aligns with the council's priorities.