Issue - meetings

To note the Capital Monitoring Report 2021/22 (Qtr 1 April – June) for the Community Wellbeing and Housing Committee.

The Committee received a Capital Monitoring report related to services falling under the remit of the Community Wellbeing and Housing Committee for quarter one of the financial year from the Deputy Chief Executive. The Committee were advised that for the quarter year that ended 30 June 2021 there was a projected aggregate net underspend of £290k.

Concerns were raised in respect of the overspend of £356k on the Whitehouse Single Person Homeless Hostel development. The Deputy Chief Executive advised that this figure was due problems caused by the pandemic in respect of labour, sourcing of materials and deadlines not being met. Additional enhanced  specification in respect of fitting out the hostel, including disability adaptations,  had also added to the costs of this development. However, £308k of this overspend had been offset by external grant funds. The Committee were advised by the Deputy Chief Executive that he would provide a written statement of the costs involved in respect the Whitehouse Hostel and also the land value split between the Whitehouse Hostel and Whitehouse Residential developments.

The Committee made reference to a previous development, Churchill House that had gone over budget. The Council had sought to learn from that past experience to ensure that future developments stayed on budget and were neither subject to an underspend or a overspend and this in part is why the additional governance associated with the Development Sub-Committee had been put in place. It was agreed that the Council must put in place good practice to ensure that any budget allocated to a development is managed effectively. The Deputy Chief Executive advised the Committee that Term Sheets were being used for all new developments and that the Development Sub-Committee would be monitoring each development to ensure that the costs incurred were inline with the original budgets.

The Committee resolved to note the report.