Agenda item

To consider a report by Councillor Gwyneth Ellis, Lead Member for Finance, Performance and Strategic Assets (copy enclosed) seeking Cabinet approval of the proposed new capital process.

RESOLVED that Cabinet –

(a)       approve the new capital process, and

(b)       support the draft Terms of Reference of the Capital Scrutiny Group which would be presented for approval at the first meeting of the Group.

Councillor Gwyneth Ellis presented the report updating Cabinet on a proposed new capital budget setting process and changes to the Terms of Reference and name of the Strategic Investment Group.

The Head of Finance and Property explained the reasoning behind the review of the capital process, taking into account feedback from the Strategic Investment Group (SIG) and to ensure a more strategic approach.  The proposals had been discussed at Cabinet Briefing, Senior Leadership Team, and Governance and Audit Committee who had provided an input.  Cabinet was guided through the draft capital process as set out in the report, which included a proposed new Capital Scrutiny Group.  The guiding principles behind the review included the need for strong governance, scrutiny and transparency and synchronisation of processes.

Main points of the proposal included –

·       creation of a Capital Scrutiny Group (CSG) comprising key senior officers and representatives of Cabinet and Scrutiny Committees to review business case proposals for capital investment (other than schemes under £0.250m that were funded 100% by external grant funding to be approved at senior officer level)

·       the CSG would not take formal decisions but their views would be taken into consideration by other decision making bodies: Cabinet to approve individual capital schemes with the annual Capital Plan requiring approval by full Council; Corporate Executive Team to approve schemes under £1m if CSG had recorded support; Cabinet to make the final decision on all schemes over £1m; schemes under £1m not supported by the CSG could be taken by the Head of Service to Cabinet for a final decision if agreement could not be reached

·       further work was required on the detail of the capital bid forms and process with the aim that all capital projects would be completed on Verto project forms to include all the extra information required to make decisions on capital business cases; detailed operational guidance would be developed by the Spring

·       the CSG and Budget Board would be supported by Committee Services from April and the process and terms of reference would be subject to annual review.

Cabinet welcomed the consultation on the proposed new process, including scrutiny by the Governance and Audit Committee on that approach, and supported the new process as a means of strengthening the democratic processes and provide greater transparency of the scrutiny and decision making arrangements involved.  Councillors Arwel Roberts and Gareth Sandilands, former members of the SIG, gave their viewpoint on the previous arrangements, which Cabinet found useful, and voiced their support for the proposed new process and merits of that approach.  Given the significant changes at Cabinet and senior level since May’s local government elections, it was considered timely to review and implement the new approach.  The importance of “buy-in” to the process from the whole Council was highlighted with all working together for the benefit of all the county’s residents.

In response to questions, the Head of Finance and Property advised that –

·       whilst the proposed change to in-year grant funded schemes up to £0.250m to be approved at officer level would streamline that process, the main aim of the new process was to provide a more strategic approach with greater transparency, with information readily available and easily accessible on modern.gov, and to ensure more scrutiny of larger schemes and decisions taken

·       the Council had approved a programme of school modernisation via the Sustainable Communities for Learning Programme and funding had been secured in the medium term financial plan for that purpose.  However, the business cases for the individual schemes would be scrutinised by the CSG.  A similar approach would be taken to the Levelling Up Fund capital based projects; Council had approved 10% match funding and the Clwyd South Constituency bid had since been approved by the UK Government; the business cases for the individual schemes would be subject to scrutiny by the CSG

·       details of the current capital spend were included in Cabinet’s monthly finance report.  The approved Capital Plan for 2022/23 was £51.8 with expenditure to date of £17.9m, which was typical at this stage in the financial year

·       in the interim period since May’s elections, matters usually considered by SIG had been dealt with through the Budget Board, with schemes over £1m requiring Cabinet approval.  It was expected that the CSG would be in place early next year with information available on modern.gov from April 2023, and an overview of the initial work of the CSG was provided.  Most capital schemes involved executive decisions taken either by Cabinet or the Corporate Executive Team but clearly based on the recommendations of the CSG.

Having reviewed the proposed new capital process, it was –

RESOLVED that Cabinet –

(a)      approve the new capital process, and

(b)      support the draft Terms of Reference of the Capital Scrutiny Group which would be presented for approval at the first meeting of the Group.

At this point (11.30 am) the meeting adjourned for a refreshment break.