Oxfordshire County Council logo

Agenda item

Budget and Business Planning 2022/23: Capital and investment strategies: Strategic plan - proposed priorities and objectives: Budget consultation findings

The Performance and Corporate Services Overview and Scrutiny Committee is invited to consider and comment on the following documents attached as annexes:

 

         Budget consultation 2022/23 findings (Section 2.1) and the draft strategic plan (Section 2.2) with accompanying engagement feedback on the Oxfordshire Fair Deal Alliance’s priorities (Section 2.3)

 

         The Capital and Investment Strategy (Section 5.1), incorporating

i.         The Treasury Management Strategy and Annual Investment Strategy 2022/23 (Section 5.2)

ii.        The Investment Strategy for Property Investment 2022/23 (Section 5.3)

iii.       The Property Strategy (Section 5.4)

 

         Proposed additions to the Capital Programme (Section 5.5)

 

         The Draft Capital Programme 2022/23 to 2031/32 (Section 5.6)

 

Minutes:

The Committee was asked to consider and comment on the Council’s Capital and Investment Strategy, capital programme and supporting strategies, as part of the Committee’s scrutiny of the Council’s overall budget proposals for 2022-2023.

 

Members were provided with the following documents:

·       Budget consultation 2022/23 findings and the draft strategic plan with accompanying engagement feedback on the Oxfordshire Fair Deal Alliance’s priorities

·       The Capital and Investment Strategy which incorporated: -

               I.         The Treasury Management Strategy and Annual Investment Strategy 2022/23

             II.         The Investment Strategy for Property Investment 2022/23

            III.         The Property Strategy

           IV.         Proposed additions to the Capital Programme

             V.         The Draft Capital Programme 2022/23 to 2031/32.

 

The Committee was informed that on 18 January 2022, the Cabinet would consider the proposed revenue budget for 2022/23, the Medium-Term Financial Strategy to 2025/26 alongside the Capital and Investment Strategy. In addition, Cabinet would be asked to consider a Budget Scrutiny report and recommendations from this committee, to be finalised and agreed later on the agenda for this meeting.

 

Councillor Calum Miller - Cabinet Member for Finance attended the meeting and introduced the item. The Committee was informed that the Capital and Investment Strategy was an overarching strategy that brings together the strategies that drive the Capital Programme, the Investment Strategy and the Treasury Management Strategy.

 

There were seven strands to the proposed Council Capital Strategy:-

 

·       Pupil Place Plan

·       Major Infrastructure

·       Highways and Structural Maintenance

·       Property and Estates

·       ICT Strategy

·       Passported Funds

·       Vehicles and Equipment.

 

Points Raised by the Committee

 

·       In relation to borrowing to cover contingency funds, Members were informed that when to borrow was down to the judgement of the Treasury Management advisers. Borrowing would not take place in advance unless advised to do so.

·       In the Capital Programme Investment Overview, Zero Emission Bus Regional Areas (ZEBRA) scheme, the extra £6m additional funding from the Council was relative to other parties. Savings would be achieved as a result of improvements to bus journey times expected to be achieved through the Bus Service Improvement Plan.

·       The Capital requirement was increasing with changes to the cost of borrowing requirements and increases in interest rates.  

·       Property and Estates: Concern was expressed at the costs of invest to save and the return on the investment.

·       Reference was made to the contingency of £50m and a Member expressed concern at the inability to scrutinise this figure due to a lack of financial detail. 

·       In relation to contingencies and the budgeted £50m, the Cabinet Member informed the Committee that this was based on future risks and pressures and had to be estimated.

·       In response to a question regarding SEND provision in the capital programme, Members were informed that there was capital provision for two new SEND schools and to improve facilities in mainstream schools. The future plans for SEND provision were currently out for consultation.    

·       Regarding the governance of the capital programme, this would be more robust in the future to ensure better scrutiny.

 

Strategic Plan

 

The Committee was provided with a document which set out the Oxfordshire Fair Deal Alliance’s vision which was to lead positive change by working in partnership to make Oxfordshire a greener, fairer, and healthier county.

 

Points Raised by the Committee

 

·       In relation to tackling inequalities in Oxfordshire, there should be reference to economic inequality, the unequal distribution of income and opportunity between different groups in the county. This shaped social outcomes.

·       There was no mention of gender-based inequalities.

·        In relation to the priority of inequalities, there should be reference to developing plans by working with partners.

·       What schemes were there for tackling food poverty, deprivation etc.

·       Decarbonisation strategy should be linked into the all the strategies and there should be a timescale. There should be a rapid decarbonisation with ambitious targets.

·       Work with local businesses and partners for environmental, economic and social benefit; – There should be inclusion of supply chains and dealing with waste.

·       LED lighting; – lower environmental impact but problems with the impact on nature, particularly birds. This would be passed to the Cabinet Member for Climate Change Delivery and Environment for his information.

·       In relation to the priority support carers and the social care system; there was no reference to community provision of care. The Council should look to actively shape care within the community.

·       There was a lack of measurability of the strategic priorities. Members were informed that targets were being developed with officers and these would be submitted to the Committee’s next meeting before the final Strategic Plan was approved by Cabinet in March. [ACTION: Corporate Director – Customers, Organisational Development and Resources]

·       On the strategic priority of work with local businesses and partners for environmental, economic, and social benefit; this seemed to be encouraging people to start up their own businesses in the care sector, rather than working in the public sector.

·       Some of the language used in the strategy was contradictory, with a mismatch between commitments and objectives and areas of focus. This required further investigation.

·       Areas of focus required updating annually.   

 

Property Strategy

 

Highways - Part 6 - Moving Vehicle Violations – Cameras; – Concern was expressed at the time period for this capital provision (£2.7m) and how many cameras it equated to. Members were informed that this was for Automatic Number Plate Recognition cameras and equated to the purchasing cost. The information on the number of cameras would be provided to Members. [ACTION: Director of Finance]

 

Connecting Oxford (Development Budget); - £300,000 allocated for this year. A request was made for further information on this allocation. [ACTION: Director of Finance]

 

The Chair thanked the Cabinet Members present for their attendance at the meeting and for their engagement in the budget process. Officers were asked for next year’s budget consultation, that informal briefing meetings take place with the Committee to ensure a more efficient and structured approach to the process.

 

At 11.55am, the meeting adjourned to enable the Chair to summarise the points raised by the Committee, and the meeting reconvened at 12.10pm.

   

The Chair summarised the discussions of the Committee and recommendations were suggested to be forwarded to Cabinet for their consideration and executive response to.

 

It was moved that it be recommended that Cabinet ensure that the corporate Strategic Plan provides greater detail on the environmental ambitions at a strategic level and fundamental measures, and the changes to be made to the Council’s approach to tackling climate emergencies in future. Additionally, that Cabinet consider mainstreaming its approach to climate change so that it becomes part of the Council’s policy framework and a mandatory consideration as part of setting the Council’s budget proposals.

 

RESOLVED –

 

(1) That the following documents be noted:

·       Budget consultation 2022/23 findings (Section 2.1) and the draft strategic plan (Section 2.2) with accompanying engagement feedback on the Oxfordshire Fair Deal Alliance’s priorities (Section 2.3)

·       The Capital and Investment Strategy (Section 5.1), incorporating

i. The Treasury Management Strategy and Annual Investment Strategy 2022/23 (Section 5.2)

ii. The Investment Strategy for Property Investment 2022/23 (Section 5.3)

iii. The Property Strategy (Section 5.4)

·       Proposed additions to the Capital Programme (Section 5.5)

·       The Draft Capital Programme 2022/23 to 2031/32 (Section 5.6).

 

(2) That the following observations and suggestions be noted:

 

·       The need to mainstream Climate Change in the Council’s approach so that it becomes a consideration in all policy and budget proposals, including the Capital Programme policy and strategy.

·       The Council should commit to maximise social value in procurement and purchasing approach.

·       The Council should ensure the integration of the decarbonisation strategy into the Council’s capital strategies.

·       The Council should include economic inequalities in the equalities analysis and with greater emphasis on gender inequality.

·       The Council should give due consideration to the use and allocation of any unused borrowing, the use of capital resources to ensure improved SEND provision, the impact of capital programmes on the natural environment, including bird wildlife, and the LED roll-out.

·       There should be greater clarity on the use and allocation of any unused borrowing and on the risks presented to the Council (including Covid-19 inflationary pressures, ongoing Council budgetary processes and increasing borrowing costs and interest rates) as regards its assessment of the deliverability of capital projects.

·       Use appropriate capital resources to ensure improved SEND provision.

·       Consider introducing a 'Wellbeing of Future Generations' policy. This could potentially draw inspiration from the pioneering Well-being of Future Generations (Wales) Act 2015, as part of its strategic ambition to "put the impact on... future generations at the heart of what we do", and to mainstream these considerations and apply them proactively as part of policy and budget design.

 

(3)      That Cabinet ensure that the corporate Strategic Plan provides greater detail on the environmental ambitions at a strategic level and fundamental measures, and the changes to be made to the Council’s approach to tackling climate emergencies in future. Additionally, that Cabinet consider mainstreaming its approach to climate change so that it becomes part of the Council’s policy framework and a mandatory consideration as part of setting the Council’s budget proposals.

Supporting documents: