Agenda item

To receive the Budget 2022/23 – Quarter 2 Forecast Outturn.

RESOLVED to:

I.              Note the General Fund, Housing Revenue Account and Capital Programme forecast outturn positions; and

II.                 Approve HRA capital expenditure of £1.641 million on the Walden Place redevelopment, to be funded partly from the Capital Reserve (£614,000) with the remainder coming from HRA revenue contributions.

The Assistant Director – Finance presented the report as Councillor Hargreaves had given his apologies.

The Director of Finance and Corporate Services highlighted the recommendation to approve HRA capital expenditure of £1.641 million on the Walden Place redevelopment project, which would be funded partly from the Capital Reserve (£614,000) with the remainder coming from the HRA revenue contributions.

Councillor Caton said he was disappointed with the current situation as the financial difficulties faced by the Council could not all be placed on external factors; the administration’s decisions in relation to Stansted Airport and the long term financing of the Council’s investment portfolio had left the Council worse off, which would impact on services during a cost of living crisis. Borrowing rates had increased substantially and the administration had only acted following the fallout of the “Truss mini-budget”, which was contrary to the Commercial Strategy, which had been published in February.

The Leader said she was disappointed with this political grandstanding and rejected the notion that a cut or reduction in services was guaranteed at this point.

Councillor Reeve disputed Councillor Caton’s statement. He said if it was not for the commercial decisions taken by the administration the Council would be “half the size it is tonight”. In respect of borrowing costs, he said long terms loans were secured ten days before the “mini-budget” and rates were acceptable in comparison to the rates that followed.

Councillor Evans disagreed with Councillor Caton in respect of the Stansted Airport appeal. As had been explained, the defense of the appeal was conducted by independent experts, they were not “creatures of the party appointing them”, but this expert evidence did not stand up to the test imposed by the Planning Inspectors, which had led to the costs being awarded against the Council. He said it was conventional for costs to follow such an event.

Councillor Gregory said the Commercial Strategy was impressive but it was not fair for the Leader to say services would not be affected. That was not known as this point. On the Stansted Airport appeal, he asked members to note the extensive documentation available from the independent review, and that culpability was shared between various stakeholders involved. 

The Leader agreed with Councillor Gregory and clarified her earlier statement. She reiterated that a reduction of services was not guaranteed. 

Councillor Freeman said the investment strategy had saved jobs and the Council would be in poor shape without it. He said he had voted against investments in the past but times had changed; Councils could no longer depend on the financial support of Government and had to find other means to protect services and jobs.

The Leader said that without the investment portfolio the forecasted shortfall would have been closer to £9 million.

In response to a question from Councillor Smith regarding the administration’s plans to make savings, Councillor Reeve said this was not relevant to the current item, as this was looking back to Quarter 2 of 2022/23, and members should not be double guessing the issue tonight. Councillor Evans said the planning department was looking at the level of agency staff and the cost of fees in terms of making savings going forward.

Councillor Caton took issue with the administration making political capital of the issue which had led to his statement to Cabinet.

The Leader proposed the recommendation set-out in the report, which was duly seconded by Councillor Reeve. The proposal was moved to a vote and was approved unanimously.

            RESOLVED to:

1. Note the General Fund, Housing Revenue Account and Capital Programme forecast outturn positions
2. Approve HRA capital expenditure of £1.641 million on the Walden Place redevelopment, to be funded partly from the Capital Reserve (£614,000) with the remainder coming from HRA revenue contributions