Agenda and minutes

Overview and Scrutiny Committee – Resources - Monday, 2nd December, 2024 7.00 pm, NEW

Venue: Council Chamber, Millmead House, Millmead, Guildford, Surrey GU2 4BB. View directions

Contact: James Dearling, Tel no: 01483 444141 Email:  james.dearling@guildford.gov.uk 

Media

Items
No. Item

OSR24

Apologies for Absence and Notification of Substitute Members

Additional documents:

Minutes:

The Committee was advised of apologies from Councillors Honor Brooker, Dominique Williams, and Sue Wyeth-Price.

 

OSR25

Local Code of Conduct and Declaration of Disclosable Pecuniary Interests

In accordance with the local Code of Conduct, a councillor is required to disclose at the meeting any Disclosable Pecuniary Interest (DPI) that they may have in respect of any matter for consideration on this agenda. Any councillor with a DPI must not participate in any discussion or vote regarding that matter and they must withdraw from the meeting immediately before consideration of the matter.

 

If that DPI has not been registered, the councillor must notify the Monitoring Officer of the details of the DPI within 28 days of the date of the meeting.

 

Councillors are further invited to disclose any non-pecuniary interest which may be relevant to any matter on this agenda, in the interests of transparency, and to confirm that it will not affect their objectivity in relation to that matter.

Additional documents:

Minutes:

There were no disclosures of interest.

OSR26

Minutes of Previous Meeting pdf icon PDF 90 KB

To confirm the minutes of the 12 November 2024 meeting.

Additional documents:

Minutes:

The minutes of the meeting held on 12 November 2024 were approved.

 

OSR27

Weyside Urban Village – update on delivery and progress on financial mitigation strategy

Additional documents:

Minutes:

The Chair reminded the Committee that the meeting had been arranged to consider Weyside Urban Village (WUV).  With reference to the lateness of the report submitted to the Committee and the role of overview and scrutiny, the Chair asked Committee members to confirm that they had had sufficient time to review the information within the report.  After Committee members had indicated their agreement to proceed with the item, the Chair invited the Lead Councillor for Regeneration to introduce the report and provide an explanation for the delay in its publication.

 

The Lead Councillor for Regeneration outlined the aims of the Weyside Urban Village programme, including the provision of 1,500 homes, employment space, upgraded highways, and improved public realm and footpaths.  He advised that the relocation of the Thames Water sewage treatment works was being funded by the Council because it was cheaper to remediate the site of the old sewage treatment works than the landfill site on which the new sewage treatment works would be.

 

The Lead Councillor for Regeneration advised that other projects within the programme included the relocation of Surrey County Council's waste transfer facility.  He informed the meeting that in May 2024 a report to full Council had advised of a deficit on the WUV programme and the consideration of mitigations.  The Lead Councillor for Regeneration indicated that the report submitted to the Committee described the mitigations in more detail.

 

The Lead Councillor for Regeneration apologised for the late submission of the report and indicated this was due to a delay in the obtaining additional information for inclusion in the report.

 

During the ensuing discussion, a number of points were raised and clarifications offered:

 

·       A member of the Committee spoke against the option to reduce the percentage of affordable homes across the site, indicating the need for affordable housing in the area.  Other members of the Committee indicated their support for delivery of 40% affordable housing, with one member suggesting that changing the tenure balance of the housing stock would defeat the objectives of the WUV programme.  In response, the Lead Councillor for Regeneration advised that while reducing the level of affordable housing was not a choice desired by the Council, it needed to be included as an option to mitigate the WUV programme deficit. 

 

·       In reply to questions on the Income Strip mitigation option within the report, the Lead Councillor for Regeneration confirmed that there was a risk that index-linked payments for an investor would outstrip any increase in the rent received from housing.  He indicated that discussion of specific financial information would first require the closure of the meeting to the public.  The Lead Councillor for Regeneration advised that income stripping was one of a range of possible mitigation measures that might be utilised, and he identified the asset disposal programme and the acceleration of land disposal as other notable options. 

 

·       In relation to the Income Strip mitigation option within the report, the Strategic Director of Finance and Resources referred to the potential benefits of  ...  view the full minutes text for item OSR27

OSR28

Period 6 Financial Monitoring 2024/25 pdf icon PDF 78 KB

To include a verbal update on Period 7 (April – October 2024).

Additional documents:

Minutes:

The Assistant Director of Finance introduced the report submitted to the Committee, highlighting the forecast underspend of £0.285m in the General Fund Revenue Account and overspend of £0.247m within the Housing Revenue Account (HRA), and advising that the General Fund reserves were expected to be £35.4m.  The meeting was informed that the capital programme was being reviewed, and that from a budget of £166.8m spending was forecast to be £127.5m or approximately eighty percent.  The Assistant Director of Finance indicated that debt due to the Council was over £9m.  She advised the Committee of approximately £5m of budget savings for 2024/25. 

 

The Assistant Director of Finance advised the Committee of the changes to the projected outturn position since the publication of the report, including a slight increase in revenue underspend, an increase in the HRA overspend, and a reduction in Council debt.

 

During the ensuing discussion a number of questions were asked, and clarifications offered:

 

·       A member of the Committee noted the apparent correlation with increasing staff within the accounts receivable section and reducing the deficit in that area and suggested the advantages of further staffing increases in the section.  In response, the Assistant Director of Finance referred to other actions enacted or planned to reduce the money owed to the Council.  In addition, the Assistant Director of Finance noted the training period for new staff and suggested the merit in reviewing the impact of newly recruited staff once they were fully trained.

 

·       In reply to a question on the adverse variance for the HRA and the completion of necessary works, the Assistant Director of Finance indicated that the HRA overspend centred on reactive repairs that were difficult to predict but that all the backdated information had been reviewed by housing services and included within the financial forecast.

 

·       With reference to Appendix 4 to the report submitted to the Committee, the Assistant Director advised that ‘#N/A’ referred to money paid to the Council but not yet ascribed a cost centre or reference code; she indicated that the money had been allocated since publication of the report.  The Committee was informed that subsequent financial monitoring reports would allocate all such payments to the Council.

 

·       A member of the Committee referred to the £3.798m of overdue debt due to the Council and not supported by a payment plan.  He asked what measures have been taken to reduce this debt and whether an assessment been undertaken to forecast likely bad debt provision.  In reply, the Assistant Director of Finance advised that all bad debt was being reviewed, the review of the debt policy was in progress, and bad debt provision was held on the balance sheet.

 

·       In response to a query on the red-rating for vacancy credit, the Assistant Director for Finance advised that the targeted underspend on staff and posts would be achieved.  She stated that further details of the work undertaken to achieve the saving would be presented to the Committee at a future date.

 

·       The Lead Councillor for Finance and  ...  view the full minutes text for item OSR28

OSR29

Medium Term Financial Plan Update pdf icon PDF 106 KB

Additional documents:

Minutes:

The Strategic Director of Finance and Resources introduced the item and updated the Committee on a government finance policy statement issued since the Autumn Statement.  He advised the meeting that next year’s finance settlement for councils would likely be announced on 19 December. 

 

The Strategic Director of Finance and Resources confirmed that changes announced to National Insurance in the Autumn Statement would impact employers and raise approximately £25 billion.  He suggested that the NI change would cost the Council about £1,000 per employee, or approximately £700k per annum, and that it was unknown whether the extra costs would be funded by the government.

 

The Strategic Director of Finance and Resources indicated that Council Tax referendum limits had been confirmed for 2024/25 and remained at 2.99% for district councils.  He suggested that extra money for local government allocated based on deprivation would mainly favour councils in the north of the country over those in the south. 

 

The Strategic Director of Finance and Resources advised that the New Homes Bonus was to continue for another year and would be a considerable help to the Council. 

 

The Strategic Director of Finance and Resources indicated that the minimum funding guarantee for 2024/25 was to set at zero percent, whereas the current year the Council had been protected at a minimum increase of 3% in cash.  The Committee was advised that money raised from a council tax increase could effectively be lost by a lower government grant through the minimum funding guarantee mechanism.

 

With reference to a new Fair Funding Review, to review future funding allocations, the Strategic Director of Finance and Resources highlighted the importance of the transitional period for implementation of any changes.

 

In reply to comments, the Strategic Director of Finance and Resources suggested that interest rates would now reduce much slower than anticipated previously.

 

The Lead Councillor for Finance and Property stated that it was clear that central government would not be coming to the Council’s rescue, and he highlighted the need for the Council to act more like a commercial organisation in order to continue to function and provide the range of services desired.

 

RESOLVED:  That the progress on updating the Council’s Medium Term Financial Plan be noted.

 

OSR30

Work Programme pdf icon PDF 71 KB

To consider and agree the Committee’s work plan.

Additional documents:

Minutes:

The Senior Democratic Services Officer (Scrutiny) advised the meeting that, to accommodate preparation of the Budget finance report, the Committee’s next meeting date had been moved from 14 January to 21 January 2024.

 

RESOLVED: That the work programme presented to the Committee be approved.