Purpose

Consideration of options to
mitigate the identified potential financial deficit in the Weyside
Urban Village scheme.

Content

Decision:

1.         
Note the
options identified available to address the forecast financial
deficit and the risks associated with each; and

2.         
Recommend to Council
(meeting 29th July 2025) that it resolve
to:

(i)        
Approve
the Treasury Management Strategy proposal outlined in Exempt
Appendix 1

(ii)      
Note the
residual forecast deficit (detailed in Exempt Appendix 1) following
the delivery of the mitigation outlined in 2.2 above and note that
the Council may need to implement further mitigation action to
address the remaining balance; and

(iii)    
Note the
continued work to realise commercial opportunities linked to the
Weyside Urban Village scheme.
Reason(s):

1.    
Under
Section 114 of the Local Government Finance Act 1988 the Council is
required to produce a balanced budget and take corrective action if
financial problems arise. The forecast potential deficit that would
be realised at the end of the Weyside Urban Village programme is
substantial and would have a profound impact on the future delivery
of Council services should a strategy to address this not be
implemented.

2.    
The
Council also needs to provide confirmation to Homes England as to
how it intends to address the forecast deficit and its strategy to
dispose of the first phases of land for housing.

3.    
The
recommendations in this report seek to mitigate the forecast
deficit to an extent where the impacts can be more readily managed
and the implications on the long-term delivery of Council services
lessened. It also supports the Council’s duty to deliver Best
Value.
Other options considered and rejected by the
Executive:
Options 1 and 3.
Details of any conflict of interest declared by the Leader or
lead councillors and any dispensation granted:
None.