Issue - meetings

The Council received the recommendations of the Executive in respect of the updated Medium Term Financial Strategy (the MTFS) for the period 2024/25 to 2028/29.  The document set out the strategic financial approach that the Council would need to take to deliver the Improvement and Recovery Plan (IRP) and respond to the Section 114 Notice, whilst continuing to meet its statutory duties.  The paper included feedback from the recent resident engagement exercise, alongside next steps for a six week public consultation on proposed changes to Council services beginning Monday, 2 October 2023. 

In addition, following the proposal by the Leader of the Council at the meeting of the Executive on 14 September 2023, an addendum had been included which noted that the Council’s Investment Programme would accommodate investment which had received full Government funding and support to facilitate the completion of assets that were partially complete and to deliver best value for the public purse.  The addendum stated that investment in ThamesWey and Victoria Square would continue whereby it fell in accordance with Principle C as set out in the MTFS which referred to items where, following support from Government and Commissioners, resources were provided for specific schemes that were already in delivery when the Section 114 Notice had been issued.  Noting that a further report would be brought back to the Executive setting out the actions being taken by Officers to implement those decisions, the addendum included a request for the Council to consider an additional recommendation drawn up by the Interim Director of Finance / Section 151 Officer:

(v) the Council notes the action to be taken by the s151 officer to accommodate Government supported funding for the Victoria Square and Thameswey Regeneration projects and requires a further report to be presented to the Executive setting out the detail of actions taken and the impact on the Council’s finances.

The Portfolio Holder for Finance, Councillor Roberts, set out a historical timeline of events since July 2022 through to the proposals being presented at the current meeting for the purpose of the public consultation.  The Council had agreed a savings target of £12m of which £8.5m had been identified, against a total service spend of £45m.  Despite additional cost pressures of £8.3m arising in September 2023, the savings target had been maintained at the same level of £12m as further reductions at this stage could not be reasonably identified, following consultation with the Commissioners.

Councillor Roberts emphasised the importance of restoring the confidence in the Council with Commissioners, the Department of Levelling Up, Housing and Communities, and the Treasury as it had been unable in hindsight to set a balanced budget since at least 2018; the reserves held had therefore been illusory; past claims of financial strength in light of high borrowing levels had been incorrect; past borrowing for revenue purposes was not permitted; and the Council had borrowed funds from the Public Works Loan Board to fund loss making Council owned companies, taking a margin and  ...  view the full minutes text for item 9

Reporting Person – Eugene Walker

The Leader of the Council, Councillor Barker, drew attention to the positive and constructive discussion on the Medium Term Financial Strategy (MTFS) which had taken place at the Overview and Scrutiny Committee on Monday, 11 September 2023.  Following points raised at the Committee, it was reiterated that Impact Assessments would take place on the proposals being put forward.

The Leader provided an update on the Council’s companies.  Due to the Council’s critical financial position, the Leader explained that the Council would not be able to support or subsidise the companies moving forward and the Council and the companies would need to take advice on how to deal with the challenges presented.  The Leader advised that the Council was in positive and supportive discussions with Government in respect of proposals that required borrowing support in order to get the best outcomes for the public purse and delivered the best value for money returns from the historic investments the Council had made.  It was noted that the Council would only proceed with additional investment and borrowing where it had Government support and funding.

The Leader reported that Business Cases were being prepared for Government in order to secure Government support in relation to completing, or partially completing, specific schemes that were already in delivery by companies owned by the Council when the Section 114 Notice was issued, primarily ThamesWey and Victoria Square Woking Limited.  It was noted that the Council had agreed to the deferral of loan repayments due from companies to the Council until 31 December 2023.  This decision had been taken following legal advice and was supported by Commissioners.

The Executive heard that significant progress had been made in confirming this approach with Government and was being progressed for the Victoria Square and the Sheerwater Redevelopments.  The Leader proposed an addendum to the MTFS that would be incorporated into the report when it was considered by Council at its meeting on 28 September 2023. The addendum would note that the Council’s Investment Programme accommodated investment where full Government funding and support existed to facilitate the completion of assets that were partially complete and to deliver best value for the public purse.  Attention was drawn to the capital planning principles contained in the July MTFS report, namely Principle C, which referred to items where following support from Government and Commissioners, resources were provided for specific schemes that were already in delivery when the Section 114 Notice was issued.  Therefore, investment in Victoria Square and ThamesWey would continue where it was in accordance with Principle C.  A further report would be brought back to the Executive to set out the actions being taken by Officers to implement those decisions.

Councillor Forster, Portfolio Holder for Key Projects, provided an update on the Sheerwater Regeneration Scheme and advised that the Council and ThamesWey were in negotiations with Government around drawing down previously approved money to complete the Red, Yellow and Copper phases.  Once negotiations had been completed and agreed, the Council would have a  ...  view the full minutes text for item 6