Minutes:
Question
My question relates to the Capital Budget Monitoring report. The first recommendation in that report states that there will be no financial impact from the reprofiling of budgets into 2022/23. We live in inflationary times. Factors beyond the Council's control have led to significant inflation in costs since the budget was originally set. Given that progress on projects such as Twyford's new library has been delayed by these inflationary pressures, may I ask whether Recommendation 1 takes full account of inflation, current and projected?
Your question is very helpful because it indicates that there are uncertainties. Over the past two years, the Council has seen an unprecedented level of uncertainty due to Covid-19 and in response to this we have introduced a strengthening of our approach which includes the reprofiling of spend into future years.
Globally, inflation is an issue and will have an impact on the Council’s capital programme. As presented to the Overview and Scrutiny as part of the budget submission for 22/23, we have looked to mitigate this through introducing £12m of central contingency for capital cost uplift pressures over the next three years.
Within the capital programme, projects also have allowances for a level of price inflation built into the budget, which was always the case.
The capital programme will continue to be monitored closely with continuing reporting to the Executive and recommendations to make modifications where needed. This is part of our ongoing strengthening in financial management arrangements required in such times of uncertainty and again I would just say that I would not hesitate if I feel that the finances of the Council are going off course. I will not hesitate to bring the numbers back and look at the numbers again because we have seen some massive increases, especially around labour and materials. We are not sure whether those increases are short term or whether they are long term, but we will be looking at it again, I expect, half way through the year.
Supplementary Question
Thank you for your answer John, that was helpful and more or less what I expected and hoped to hear.
I noticed in Appendix B of the Capital Budget Monitoring report the delivery of the new Twyford Library is now to be delayed until the financial year 2022/23 and this is not entirely a surprise to me. But the delay, I am sure you will be aware, will be very disappointing to many people in the northern parishes as they have been eagerly awaiting this long promised new library.
Can you give me a more precise indication of when in the financial year, 2022/23, structural work on the building will commence and when the project will finally be delivered?
Supplementary Answer
It is very difficult for me at this moment in time to give you a commitment to that and I would not want to tell you something that we could not meet.
We have lots of other things going on at the moment and I understand how important this is, and how it was promised in times pre-Covid. It was definitely on the agenda to deliver but we have challenges around buses, we have challenges around bulge classes at schools and all those things need additional funding. In your neck of the woods, as you probably know, you have schools, secondary schools, crying out for additional facilities. Now we have to balance all those things Stephen and so it is really difficult, and I could not answer the same question if I was posed it on any project that we have got going on at the moment to be honest with you.