Issue - meetings

(To receive a report from the Executive Director – Resources which invites the Executive to note the current position on the capital programme)

That the current position on the capital programme be noted.

Consideration was given to a reportby the Assistant Director – Strategic Finance on Capital Budget Monitoring, which provided an update on capital spending for quarter 1 of 2020-21, with explanation for any significant variations. 

There had been a forecast underspend of £23.352 million owing to a slippage in some of the capital schemes, as opposed to funding which was not required.  Capital programme costs arising from the Covid-19 pandemic had been reported in the revenue budget monitoring report, as detailed in Minute 11 above. 

The Chairman of the Overview and Scrutiny Management Board presented the comments from the Board's consideration of the report on 27 August 2020.  These included reference to whether there was any further scope to limit overspending on highways schemes, through improvements to forecasting the cost of capital programme projects.  In response, it was stated that work was in hand to managing pressures to match the profiling and smooth the capital financing costs.

During consideration of this item, the following points were noted:

• The slippage in the Fire and Rescue fleet renewal scheme was being recovered and would be completed by January 2021.
• Congratulations were recorded for the funding obtained to enable the delivery of the Spalding Western Relief Road scheme, including the contributions from all the partners.
• It was noted that on rare occasions there were exceptional circumstances, which could not have been foreseen by the County Council, leading to increased expenditure on capital schemes.  An example of this was the insolvency of the original contractor for the Lincoln Eastern Bypass. 
• Improvements had been made to the oversight of expenditure on the capital programme, including the establishment of an officer review group, which provided internal challenge to programme lead officers.
• Any increases in costs for any capital scheme was challenged.  

RESOLVED

That the current position on the capital programme be noted.