Issue - meetings

Report FSD23075

On 29 November 2023, the Executive would be receiving a report summarising the current position on capital expenditure and receipts following the second quarter of 2023/24 and would be asked to agree a revised capital programme for the five-year period 2023/24 to 2027/28. The report for the Executive, Resources and Contracts PDS Committee highlighted changes to be put to the Executive and the Leader in respect of the capital programme for the Resources, Commissioning and Contract Management portfolio. The revised programme for this portfolio was set out in Appendix A and detailed comments on individual schemes were shown in Appendix B of the report.

In response to a question concerning the provision of £3m for the additional costs associated with reinforced autoclaved aerated concrete (RAAC), the Director of Finance confirmed that whilst to some extent Officers had been required to estimate any demands on the Capital Programme until surveys had been completed, the view that had been taken was that it was better to make some provision than none at all.  Officers had estimated that following surveys (which cost £300k) the cost of any remedial work was likely to be in the region of £2.7m.  Any funds set aside would continue to earn interest whilst unspent and if the funds remained unspent, they would return to the general fund.

In response to a question concerning borrowing for housing, the Director of Finance confirmed that there were no restrictions on borrowing to fund an advantageous housing scheme.  Any business case for such a scheme would be presented to Members for consideration however, rates of interest were currently high and it was therefore in the Council’s interest to wait before embarking on any borrowing for housing, bearing in mind the 40 year term for such borrowing.  The general consensus was that interest rates would begin to fall in the next two years and the Council could afford to wait in order to reduce the cost of any borrowing.

RESOLVED: That the Portfolio Holder be recommended to note and acknowledge the changes to be put to the Executive on 29 November 2023.