Agenda item

To consider a report by Councillor Julian Thompson-Hill, Lead Member for Finance, Corporate Plan and Performance (copy enclosed) providing an updated financial position on the Corporate Plan.

RESOLVED that –

(a)       Cabinet confirm the assumptions noted within the Plan, and

(b)       members request further reports to Cabinet in January 2016 and at regular intervals thereafter on the progress being made on each of the projects identified in Appendix 1 to the report.

Councillor Julian Thompson-Hill presented the report providing an updated financial position on the Corporate Plan.

The Corporate Plan was launched in 2012 and set out an ambitious programme of capital investment in schools, roads, social care and modernisation.  Delivery of the Plan was reliant on securing budget to fund borrowing and maintaining cash reserves together with government grant to help deliver the 21st Century Schools programme, and in previous years government grant had also supported the funding of additional highways investment.  The Plan had developed since 2012 and to make it affordable some revisions had been necessary alongside changes in planning assumptions.

Councillor Thompson-Hill elaborated upon the financial elements of the Corporate Plan, including key assumptions, particularly referring to –

·         council’s agreement to prioritise delivery of the Plan in future budget rounds

·         key changes to the original Plan being the removal of the Office Accommodation project and a reduced estimated cost of the 21st Century Schools programme

·         Cabinet having agreed in June 2015 to increase Highways expenditure by £3.2m to £18.4m through the additional allocation of £800k per year

·         the latest position regarding funding of the 21st Century Schools programme with confirmation having recently been received from Welsh Government that the revised Strategic Outline Programme submitted in June 2015 was acceptable and all schemes (including the faith school project, Ruthin Town School, Ysgol Carreg Emlyn, Llanfair/Pentrecelyn Areas and Ysgol Pendref in Denbigh) would be funded at 50%

·         total estimated capital costs being £126m and a snapshot of current cashflow and spend up to 2019/20 had been included at Appendix 1 to the report.

In conclusion Councillor Thompson-Hill advised that the Plan was robust and, all things being equal, resources were in place for the Plan to remain deliverable.

During consideration of the report the following matters were discussed –

·         Councillor Eryl Williams reiterated that Denbighshire was at the forefront in terms of investing in school buildings and that strategy was now coming to fruition with Welsh Government funding all schemes at 50%.  He gave credit to the previous council for their long term vision for schools and to the current council for continuing that investment – he highlighted that Denbighshire’s position was in contrast to other councils who were not in a position to invest

·         it was clarified that the original assumption for the faith school was based on council funding 15% and for the Ruthin area schools council funding 100% – by combining those elements and agreeing a new 50% funding package with the Welsh Government the council was now benefitting from an extra £6m funding

·         assurances were sought regarding delivery of the extra care housing projects and Councillor Bobby Feeley reported upon timescales for delivery and progress made and she highlighted that progress was also reliant on external partners

·         members highlighted the need to keep the progress of projects under close review in order to avoid slippage and Councillors Eryl Williams and Julian Thompson-Hill reported upon the work of the Modernising Education Board in ensuring timely delivery of the school projects – a progress report on the faith school project would be submitted to the next Council Briefing meeting

·         Councillor David Smith responded to questions regarding highways funding and confirmed an additional £800k had been allocated to highways to try and maintain standards for priority roads but despite that additional investment it was likely that levels would slowly deteriorate

·         in responding to questions on prudential borrowing Councillor Thompson-Hill confirmed the PFI and HRA subsidy buy outs had resulted in financial gains.  Prudential indictors were agreed annually by council including the borrowing ratio and he was comfortable with the current level of borrowing.  It was noted that Corporate Governance Committee also had a role in monitoring those figures.

Cabinet noted that not all projects in the Corporate Plan were due for completion during the current council term and asked whether there were any safeguards to ensure the Plan would be fully delivered following the local elections in 2017.  Cabinet was advised that, based on current projections, most projects would be at an advanced stage and contractually obliged to proceed.  However there was a risk of slippage, particularly in terms of extra care housing.  Consequently Cabinet felt this matter should be kept under close review and every endeavour made to ensure the Corporate Plan was delivered in full.  The Chief Executive referred to the different stages and complexities of the projects within the Plan, the challenge of implementation, and his view that Cabinet should be more involved in that regard.  It was agreed that Cabinet receive regular progress reports on the various projects.

Cabinet was pleased to note the robustness of the Plan and mechanisms in place to oversee and ensure its successful delivery going forward.  The Leader highlighted the difficult and unpopular decisions made over recent times and was pleased to highlight the positive difference that the Plan’s delivery would make to the county.

RESOLVED that –

(a)       Cabinet confirm the assumptions noted within the Plan, and

(b)       members request further reports to Cabinet in January 2016 and at regular intervals thereafter on the progress being made on each of the projects identified in Appendix 1 to the report.