This Council would like to understand why The Administration has failed to ensure that all monies collected from the rate payers of Warwickshire have not been fully utilised and spent on much needed services in our towns and communities.

We therefore ask Cabinet to produce a detailed report for consideration by the Resources and Fire & Rescue Overview and Scrutiny Committee identifying why the underspends and slippage in the capital programme and revenue have occurred and what actions will be taken to ensure that this is not repeated in the future.

This report should include an assessment of capacity to deliver budgets.

Proposer - Councillor Richard Chattaway

Seconder - Councillor Helen Adkins

A vote was held on the motion. The vote was lost with one abstention

Councillor Chattaway moved the motion stating,

 “This Council would like to understand why The Administration has failed to ensure that all monies collected from the rate payers of Warwickshire have not been fully utilised and spent on much needed services in our towns and communities. We therefore ask Cabinet to produce a detailed report for consideration by the Resources and Fire & Rescue Overview and Scrutiny Committee identifying why the underspends and slippage in the capital programme and revenue have occurred and what actions will be taken to ensure that this is not repeated in the future. This report should include an assessment of capacity to deliver budgets”.

 In tabling the motion Councillor Chattaway noted significant reported underspends in capital and revenue in the 18/19 financial year. Regarding capital underspends he suggested that this was because of a failure to progress projects at an adequate pace. In addition, he suggested, a focus on the Council’s transformation programme appears to have had an impact on the Council’s capacity to deliver in some areas.

 Councillor Chattaway requested that a report be produced to explain why the underspends are arising. Regarding members’ delegated budgets Councillor Chattaway considered that projects supported by these were moving too slowly.

Councillor Adkins seconded the motion and reserved the right to speak.

Debate

Councillor Kondakor expressed the view that the term “late spends” should be used as opposed to “under spends adding that costs increase with delays. He considered that members are not kept adequately informed of schemes and that there appeared to be little planning around when best to undertake work. Small projects, he concluded, should be kept in reserve to use resources that have been assigned to projects that are delayed.

Councillor Andy Crump (Portfolio Holder for Fire & Rescue and Community Safety) explained to Council that underspends are not unusual and can be attributed to a range of different factors including, late payment of government grants and unexpected additional income. The flexibility that underspends can present means that other council services can benefit. For example, additional resources have been provided for the Fire Protection Service from reserves.

Councillor Adrian Warwick suggested that the actions called for in the motion before Council are already being undertaken by the overview and scrutiny committees and Cabinet. The principal objection, he suggested, is to obtain best value for money.

Councillor Peter Butlin stated that of the £14m underspend reported in 2018/19, £9m was the result of increased income. He assured Council that services are being delivered and that customer satisfaction rates remain high. In the first quarter of this financial year an underspend has been reported for adult social care. However, this is attributable to the late payment of a government grants and not to a drop in demand for services.

Councillor Adkins (Seconder of the motion) stated that whilst she appreciated the need to retain reserves there are people in communities in need of services. She called for consideration to be given to the establishment of a cross party group to consider the factors leading to underspends.

Councillor Chattaway asked why it had been considered necessary to increase funding for the Fire Protection Service. He concluded that the motion had been presented to act as a means of ensuring that the Council has the capacity to deliver its services.

Vote

A vote was held on the motion. The vote was lost with one abstention