Councillor A Azad, Portfolio Holder for Corporate Financial Planning and Policy, introduced the report which outlined the draft General Fund Budget for 2020-21. Councillor Azad explained that the report represented an interim stage in the business planning process of the Council. The Executive heard that the delay in changes to government funding meant that it should be possible to transfer £966,000 to the Medium Term Financial Strategy (MTFS) reserve.
Following a question regarding rent pressures in the town centre, the Executive was advised that there was a downward pressure on rent nationally. The Leader reported that Peacocks Shopping Centre had a non-occupancy rate of only 4% and that a significant amount of the Victoria Square development had been pre-let. Regarding the change to Public Works Loan Board (PWLB) borrowing rates, it was confirmed that it was not necessary to re-run the model for Victoria Square as the project had been modelled at both 2.5% and 2.75% (currently at 2.47%).
Regarding the sale of Midas House to Surrey County Council and potential loss of income, the Executive was advised that Officers were looking at additional strategic property in order to secure that income. The significant benefits of the County Council moving its headquarters to Woking was highlighted.
Potential risks in relation to external loans to group companies and other agreed external loans were raised.
RESOLVEd
That (i) the draft General Fund Budget for 2020/21 be received; and
(ii) Managers, Corporate Management Group and Portfolio Holders continue detailed budget preparation for consideration by the Executive in February 2020.
Reason: Consideration of these proposals will enable the preparation of the Council’s budgets for 2020/21 to proceed.