A rationalisation of assets and a restriction on future borrowing to only that which is essential are among the measures to be taken by Woking Borough Council as the authority commits to “living within our means”.
The council has published a draft Improvement and Recovery Programme, as required by secretary of state Michael Gove, following its widely-publicised financial failings in which a £1.2bn deficit was created, a section 114 notice issued, and the authority placed under statutory intervention.
The plan also outlines that “sufficient provision” will be made for the repayment of debt; a planned and sustainable budget framework will be established building on the authority’s revised MTFS; and that a finance team structure will be put in place “that delivers the skills, experiences and competencies required for the challenges ahead”.
Ann-Marie Barker, leader of the council, said in a foreword to the plan: “There will be substantial change over the next five years to the services council delivers to residents as it becomes a smaller, leaner council focused on delivering core services to residents.
“Nonetheless we will not lose our ambition, values and commitment to residents. We are committed to becoming a council that lives within its means. We will work closely with government, commissioners, partners, businesses and residents, to take the necessary actions at pace to deliver the fundamental changes needed.
“However uncomfortable the future will be, we are focused on delivering this plan, which we know, is necessary to achieve financial stability and secure services for the future.”
The draft plan outlines an ambitious three-year vision to “be known as one of the most improved councils in the country” and be “financially resilient, driven by data and effective and efficient in everything we do”.
Nine objectives of the authority’s financial recovery are listed in the plan. These are:
- Ensure basic governance is in place to underpin financial decision making.
- Confirm the scale of the deficit, ensure loans correctly impaired and sufficient MRP made.
- Reduce levels of outstanding debt – support asset rationalisation and commercial strategies.
- Limit future borrowing to refinancing and essential/committed capital spend.
- Delivery of MTFP and savings to close budget gap.
- Improve financial reporting to aid decision making and performance management.
- Deliver a balanced HRA.
- Ensure there is a clear financial workplan and capability and capacity to deliver the above.
- Agree a package of financial support from central government.
Among the list of actions outlined in the report, a Commercial Governance Board is expected to be established this month to oversee all commercial decision making. The draft plan also proposes that baseline cashflow requirements are understood and agreed with the Department for Levelling Up, Housing and Communities (DLUHC) in August, including a ‘what if?’ analysis.
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Business cases for the future of the Thameswey and VSWL companies should be completed in September, with financing requirements understood, according to the plan. A position on future borrowing requirements and approach will also be agreed with DLUHC and HMT next month.
Draft 2022/23 accounts are expected to be produced in September, with the impairment position for 2022/23 understood and agreed and prudential indicators updated. In the same month, the plan expects “clear outcomes” from government on what support will be made available to the council.
A “complete closedown” of 2023/24 accounts will also take place in September.
All staff at the authority will undergo redundancy consultations as part of the plan’s commitment to rationalising the scope of the council.
The draft plan will be discussed at an overview and scrutiny committee next week (14 August).
Separately, the council has launched a public consultation on the future of the Sheerwater Regeneration Project after deciding to end its development agreement with Thameswey.
Thameswey is mid-way through the delivery of a 1,200 home, multi-phase regeneration scheme in Sheerwater and will continue to work on the three phases currently under construction but will not commence any new phases.
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