Agenda item

Consideration was given to report of the Chief Officer Resources.

The Chief Officer Resources presented the report which provided an overview of each Portfolio’s actual and forecast capital expenditure against funding approvals for the 2021/2022 financial year, as at 31^st December 2021; the forecast financial position to 31st March 2021 across all portfolios; and details of significant adverse/favourable variances.

The overall financial position as forecast at 31st December, 2021 indicated an adverse variance of £227,852 against a total in year capital budget of £20.1m.  The report identified significant overspends on the following projects:

Household Waste recycling Centre - £42,752

The overspend related to increased costs due to the Covid-19 pandemic and future proofing of the site. Discussions were ongoing with WRAP Cymru and Welsh Government regarding funding the additional expenditure.

Lime Avenue Business Park –£185,096

The latest anticipated final account advises a loss and expenses claim for items in relation to unforeseen issues caused by Covid-19 pandemic of £185,096, a reduction of £49,614 when compared to the Quarter 2 forecast of £234,710. Officers were in dialogue with Welsh Government and WEFO project officials to pursue additional funding to mitigate the overspend.

The Officer confirmed that discussions with funding bodies was currently positive, therefore, it was not proposed that funding for these schemes be built in from the Capital contingency at this stage.

In response to a question raised by a Member, the Officer confirmed that the figures provided was for the existing buildings on Lime Avenue Business Park.

The Member then referred to the planning application for the delivery of 10 units to the south of the site and enquired regarding funding for the development.

The Officer confirmed that planning approval had been granted last week, however, the Council was not involved in delivery of the project.  The project was being funded by the applicant with part funding from Welsh Government.

Another Member said he understood that Tech Valleys had pulled out of the project.

In response the Officer explained that Tech Valleys was providing funding for start-up units, however, the applicant had submitted a renewed application with a change to the units being provided at the site.  In terms of Tech Valleys funding, the level of funding Welsh Government would be allocating to Tech Valleys for the next few years was awaited, but Welsh Government have indicated that funding would be difficult next year.  The Officer said there was funding available for developments, and it was likely that the applicant would enter into discussions with Welsh Government.

A Member asked for the costs incurred for the survey undertaken on the Civic Centre, and the Chief Officer Resources undertook to report back on this matter.

Another Member referred to the discussions on the proposed new development at Lime Avenue, and expressed concern that the potential loss of Tech Valley funding could impact other projects.  He said the Executive Member and Corporate Director Regeneration & Community Services both sat on the Tech Valley Board and the Chair undertook to discuss this matter with the Executive Member.

A Member then referred to the Land Release Fund - Pithead Baths and expressed concern regarding the response received from the Executive Member to correspondence on this matter, and pointed out that Officers had still not provided a response to his questions regarding the funding.  He thereupon took the opportunity to ask what conditions were attached to the funding of £224,878k and whether there was any contribution from Blaenau Gwent.

In response the Head of Regeneration undertook to report back on the terms and conditions of the funding.

The Committee AGREED to recommend that the report be accepted and Members:

·        Continue to support appropriate financial control procedures agreed by Council; and

·        Note the budgetary control and monitoring procedures in place within the Capital Team, to safeguard Authority funding. (Option 1)