Issue - meetings

At this point the Executive Member for Finance and Governance returned to the meeting.

The Executive Member for Finance and Governance submitted a report for Executive’s consideration.

The report proposed a revision of the Flexible Use of Capital Receipts Strategy for the Council for 2023/24 that was subject to approval by Full Council. The report set out the required revisions to the Strategy to enable a range of transformation and efficiency plans to be progressed within the 2023/24 financial year. Those plans would be funded from Usable Capital Receipts which were the primary source of funding given the Council’s usable revenue reserves which were critically low.

The report set out the approach that would be taken to optimise the Flexible Use of Capital Receipts during 2023/24 in accordance with Statutory Guidance. It would do so within the context of the Council realising a pipeline of cash receipts from the disposal of capital assets, subject to Executive approval of Asset Review report.

ORDERED that Executive:

1.    Endorse the proposed revisions to the Flexible Use of Capital Receipts Strategy increasing the planned expenditure in 2023/24 from £3m to £4.299m and refer to Council for consideration and approval.

2.    Note the interim revenue financing arrangements from the Change Fund pending receipt of cash from asset disposals enabling the application of capital receipts in line with the regulations.

OPTIONS

If the revised Flexible Use of Capital Receipts Strategy was not approved, then projects and initiatives to deliver cost reduction and income growth would either not be able to progress at all or will be constrained by limited revenue resources in the Change Fund.

REASONS

The revised Flexible Use of Capital Receipts Strategy would enable the progression of Financial Recovery Plans to deliver cost reduction, income generation, and/or income generation that would contribute to reducing the in-year overspend and the Council’s ability to balance the 2024/25 budget and MTFP to 2026/27.