Issue - meetings

REPORT OF THE SERVICE DIRECTOR – RESOURCES

To update Cabinet on progress with delivering the capital and treasury strategy for 2024/25, as at the end of December 2024.

RECOMMENDED TO CABINET: The Finance, Audit and Risk Committee commented on the assumptions and information contained within this report, in the context that Cabinet agrees that:

(1)   That Cabinet note the forecast expenditure of £16.816M in 2024/25 on the capital programme, paragraph 8.3 refers.

(2)   That Cabinet approve the adjustments to the capital programme for 2024/25 onwards, as a result of the revised timetable of schemes detailed in table 2 and 3, increasing the estimated spend in 2025/26 by £0.627M.

(3)   That Cabinet note the position of the availability of capital resources, as detailed in table 4 paragraph 8.6 and the requirement to keep the capital programme under review for affordability.

(4)   Cabinet is asked to note the position of Treasury Management activity as at the end of December 2024.

REASON FOR RECOMMENDATIONS:

(1)   Cabinet is required to approve adjustments to the capital programme and ensure the capital programme is fully funded.

(2)   To ensure the Council’s continued compliance with CIPFA’s code of practice on Treasury Management and the Local Government Act 2003 and that the Council manages its exposure to interest and capital risk.

Audio Recording – 1 hour 16 minutes 4 seconds

N.B. Cllr Paul Ward declared an interest in this item due to his employment and left the chamber.

The Service Director – Resources presented the report entitled ‘Third Quarter Investment Strategy (Capital and Treasury) Review 2024/25’ and highlighted the following:

·       The Q2 Investment Strategy Review highlighted a significant amount of slippage. Due to this being caught earlier there was less slippage in Q3, which was detailed at Table 2 of the report.

·       Table 3 of the report highlighted changes to forecast spend, with some slippage moving forward into this financial year. 

·       The Councill had forecast a positive CFR by end of the year; meaning the Council would move into a borrowing position and would borrow internally against cash reserves.

·       Paragraph 8.9 of the report onwards detailed the surplus cash.

·       All investments were in accordance with the Council treasury strategy and paragraph 8.11 of the report highlighted where these investments were.

·       The Local Authority Market currently had the best returns and therefore most of the Councils investments were there, however there were some investments in banks and with DMO.

The following Members asked questions:

·       Councillor Sam Collins

·       Councillor Vijaiya Poopalasingham

In response to questions, the Service Director – Resources advised that:

·       If Local Government restructuring happened, then the money this Council invested in other Councils would be transferred into the new Authority that North Hertfordshire Council became part of.

·       If this Council became part of a different Local Authority, then assets and money transfer across to the new Local Authority. 

·       The number of Home Repair Assistance grants given out in the last financial year was not currently available but could be provided to Members.

Councillor Vijaiya Poopalasingham proposed, and Councillor Stewart Willoughby seconded and, following a vote, it was:

RECOMMENDED TO CABINET: The Finance, Audit and Risk Committee commented on the recommendations to Cabinet, which are:

(1)   That Cabinet noted the forecast expenditure of £16.816M in 2024/25 on the capital programme, paragraph 8.3 refers.

(2)   That Cabinet approved the adjustments to the capital programme for 2024/25 onwards, as a result of the revised timetable of schemes detailed in table 2 and 3, increasing the estimated spend in 2025/26 by £0.627M.

(3)   That Cabinet noted the position of the availability of capital resources, as detailed in table 4 paragraph 8.6 and the requirement to keep the capital programme under review for affordability.

(4)   Cabinet is asked to note the position of Treasury Management activity as at the end of December 2024.

REASON FOR RECOMMENDATIONS:

(1)   Cabinet is required to approve adjustments to the capital programme and ensure the capital programme is fully funded.

(2)   To ensure the Council’s continued compliance with CIPFA’s code of practice on Treasury Management and the Local Government Act 2003 and that the Council manages its exposure to interest and capital risk.

N.B. Cllr Paul Ward returned to the Chamber at 20:55.