Agenda item

The Service Lead, Finance provided a presentation to the Committee that set out the Council’s budget proposals 2020/21, including the highlights of the Capital Strategy, the Treasury Management Strategy and the Revenue Budget. 

The presentation highlighted the following:

·  The Council’s budget for 2020/21 was balanced.  The major uncertainty for 2021/22 was due to the Government’s Business Rates review.

·  Investment was being increased in demand led growth for front line services in order to protect the most vulnerable people in Slough.

·  Commercial income and efficiencies were being used to offset Government funding reductions and protect front line services.

·  It was proposed to increase Council Tax by 1.84%, with an additional 2.0% increase on the Adult Social Care Precept – a total 3.84% increase, which equated to a 90p per week increase on a Band C property.

·  Growth proposals to address major areas of demand (temporary accommodation, home to school transport, Children’s Services, and Adult Social Care) and deliver service improvements were planned.

·  Savings proposals included: efficiency savings resulting from the Arvato services being delivered in-house; income generated from the leisure centre contacts and streamlined service savings; staffing savings to be generated by the ‘Slough Academy’, which involved the Council ‘growing its own staff’ and reducing reliance on agency staffing.

(Councillor Matloob joined the meeting)

The Chair then invited comments and questions from Members.

Members had a wide-ranging discussion, during which the following points were raised:

·  The increasing demand for housing in Slough was highlighted.  A Member queried the Council’s purchase of a cinema in Basingstoke and asked if investment in local housing stock would have benefited residents more.  It was explained that the cinema was a strategic purchase and the rental income received was used to fund front line Council services.  By purchasing a wide range of assets the Council could ensure its investment portfolio was robust.  It was explained that for the acquisition of land or property to be considered ‘strategic’ it had to make a significant contribution towards the Council’s regeneration objectives and/or provide a commercial return on investment to improve the financial resilience of the Council.

·  A Member stressed the importance of housing residents within Slough, rather than relocating them to accommodation outside of the Borough.  In response, it was highlighted that the Council was continuing to make significant investment in James Elliman Homes Limited to provide housing to residents.

·  Clarification was sought regarding the funding of the Nova House Capital Loan scheme, listed in Appendix A of the report.  It was explained that in 2017 the building had failed a cladding safety test.  Consequently, the Cabinet had taken the decision to decant residents due to the fire risk and undertake a £10 million refurbishment programme.

·  Clarification was sought regarding the Extra Care Housing scheme, listed in Appendix A of the report, which indicated that no investment funding had been made during 2019/20.  It was explained that future capital funding would be invested and a two year programme was currently underway.

·  In relation to Section 106 receipts, a Member asked why the Council currently held £10.2 million in receipts and why the money was used to fund a variety of schemes, rather than being ring-fenced and attached to the project associated with the funding.  It was explained that there were restrictions in place to control what the money could be used for, and the Council complied with its obligations.  It was highlighted that officers spent Section 106 funding within the required timeframes to ensure it was not returned to the developer.

·  Referring to the Special School Expansion, listed in Appendix A of the report, a Member asked which schools would be undergoing expansion.  The Service Lead, Finance undertook to seek this information from the relevant department and to circulate a response to the Committee.

·  A Member asked how many rooms would be provided by the Chalvey Extra Care Housing scheme.  It was reported that the scheme would provide 60 rooms.

·  A Member asked for additional information regarding the cemetery expansion scheme.  It was explained that the Council was undertaking an expansion of the cemetery to ensure the site was large enough to meet future demand.  The crematorium facilities were being upgraded, and this included the installation of webcasting technology.

·  Clarification was sought regarding the ‘Hub Development’ and ‘Youth Hub’ schemes.  It was explained that these schemes formed part of the Council’s ‘locality offer’.

The Chair then invited Councillor Strutton to address the Committee

under Rule 30.

Councillor Strutton asked for details regarding the refurbishment costs and projected valuation of Nova House.  He queried whether the purchase had been a ‘good’ or ‘bad’ investment for the Council.  In response, it was explained that the Council expected to recoup the investment cost; however, the purchase was never intended as a profit making exercise, rather it had been purchased to safeguard residents.

Councillor Strutton highlighted the cost to the Council of placing people in temporary accommodation and asked if the money would be better invested in building Council owned housing.  In response, it was explained that the Council had established a subsidiary housing company, James Elliman Homes Limited to provide housing to Slough residents.

The Chair thanked the Service Lead, Finance, and the Director of Finance and Resources for the presentation.

Resolved –

(a)  That the Service Lead, Finance be requested to circulate information detailing the schools that would be undergoing expansion to the Committee.

(b)  That the Overview and Scrutiny Committee noted the Capital Strategy 2020/ 2024 and that Cabinet on 3rd February 2020 would be requested to resolve:

  I.  That the Capital Strategy of £259 million and the associated Minimum Revenue Provision was approved and recommended to Full Council on 20th February 2020.

  II.  To note that the notional costs of borrowing for the Capital Programme to the Revenue Budget would be increased by up to £5.916 million per annum - commencing during the period of the Capital Strategy to fund borrowing.

  III.  To recommend that the principles underpinning the Capital Programme, as set out in section 5.1.2 of the report and the Minimum Revenue Provision principles, as set out in section 7 of the report, be approved and recommended to Full Council on 20th February 2020. 

  IV.  To recommend that Appendices A and B of the report, detailing the Capital Programmes for the General Fund and the Housing Revenue Account be approved and recommended to Full Council on 20th February 2020.