Agenda item

This item was presented collectively in the joint Budget OSC meeting by Nigel Howcutt, Chief Finance Officer. Following his presentation, he welcomed questions from the committees.

Councillor Guest referred to page 18 of the report regarding the repayment of £10m, noting that they are no longer paying interest of around £200k per year. Councillor Guest noted that they would be looking to repay further debt, where appropriate, and that the slides suggest a heavy financial penalty for the early repayment of public works loans. She asked if the Council would be saving money by repaying loans.

N Howcutt advises that there are typically penalties in repaying PWLB loans early, though on this occasion, the government wanted to reduce debt levels and offered to reduce the principal capital owed from £10m to £9.6m and not charge the interest that would be paid over the life of the loan. N Howcutt noted that this was a one-off opportunity, noting that it would not typically be cost effective to make an early repayment. When a repayment is made, the total cost of making the repayment is calculated against the cost of continuing with the loan. The process was approved by the Finance and Resources Portfolio Holder and Leader of the Council to ensure it was financially beneficial.

Councillor Mahmood commented on increasing business rates and asked if there was any action they could take to help local businesses.

N Howcutt advised that they are following government protocol in terms of what they charge, however they have an active Economic Recovery Team and Board, which many businesses sit on, and that they look at the support that businesses require. N Howcutt noted that businesses and smaller units have done well from business rates compared to larger industrial units and the filming sectors.

Councillor Symington commented on the PWLB and asked what the Council is missing out on investing in by repaying £10m of debt. N Howcutt advised that they have around £100m in cash balances and that they can consider any investments that will at least bring in the cost of financing them. N Howcutt stated that they currently have enough internal cash to invest. When the loan was repaid, it was ensured that the full medium-term capital programme and investment strategy were full funded.

Councillor Symington referred to page 20 in the report, noting the employee costs and that in December, they anticipated growth of £5.1m in December, which has reduced to £2.7m. Councillor Symington queried what has changed in the wage bill since December.

N Howcutt confirmed that they will not need to make a contribution to the pensions fund as a result of the pension’s triennial review.

Councillor Chapman commented on page 18 of the report, item 13, regarding the ongoing staffing resource to support work on damp and mould issues and council housing stock. Councillor Chapman asked if they will check all housing with this additional money or if they would only use this to respond to complaints.

N Howcutt advised that this follows on from the assessment of housing needs and that a full report was taken to housing and community overview and scrutiny committee to outline this project. The allocated funding is required to continue this work in 2023-24 and suggested that Mark Pinnell, Assistant Director of Property, be asked to provide a further overview of the work that will be undertaken.

Councillor Chapman asked if all members could receive an update on progress regarding housing. N Beresford confirmed that she would liaise with M Pinnell and arrange for an update to be shared with all councillors.

Councillor Elliot thanked N Howcutt and the team for the presentation and noted the robustness of the Council's budget.

N Howcutt highlighted the hard work done by the whole team and agreed that they have a robust yet challenging budget.

The Chairman thanked the Finance team for all their hard work. 

Outcome

The Committee reviewed and scrutinised the draft budget proposals for 2023/24 and provided feedback to be considered by Cabinet.

Action

N Beresford to liaise with M Pinnell for update on housing with regards to actions on damp and mould issues to be circulated to all council members.