Issue - meetings

In November 2021, Council approved a £5.87m allocation from Futures Fund (Public Works Loan Board - PWLB - borrowing) to install a 70.5km long core gigabit-fibre network asset, enabling savings, social and economic benefit, and a net surplus income for the Council over a fifty year period.

Due to changes in financial circumstances, the scope of the project was revised in August 2023 to £3.35m to deliver 21.6km of fibre network. Phase 1 has involved already installing some ducting during programmed highway works. Phase 2 requires the majority of capital investment. Before Phase 2 begins, this paper draws attention to further significant changes that have occurred since Council approved the project funding and provides options with a recommendation to stop the project

RESOLVED that Cabinet agrees the Preferred Option, to stop the project and not to proceed with Phase 2 of installation of fibre and ducting.

Voting: Unanimous

Portfolio Holder(s): Leader of the Council and Portfolio Holder for Dynamic Places

Deputy Leader and Portfolio Holder for Connected Communities

Reason

(i)       Due to recent and potentially future volatility with interest rates, changes in market conditions and increases in construction costs there is now less certainty about the viability of the business case.

(ii)      The project does not meet the current administration’s criteria for PWLB borrowing.

(iii)     Derisks the ongoing project for the council and aligns with the current Corporate Strategy, ‘working with partners, removing barriers and empowering others’.

The Deputy Leader of the Council and Portfolio Holder for Connected Communities presented a report, a copy of which had been circulated to each Member and a copy of which appears as Appendix 'I' to these Minutes in the Minute Book.

Cabinet was advised that in November 2021, Council approved a £5.87m allocation from Futures Fund (Public Works Loan Board - PWLB - borrowing) to install a 70.5km long core gigabit-fibre network asset, enabling savings, social and economic benefit, and a net surplus income for the Council over a fifty-year period.

Further to this Cabinet was informed that due to changes in financial circumstances, the scope of the project was revised in August 2023 to £3.35m to deliver 21.6km of fibre network, and that Phase 1 has involved already installing some ducting during programmed highway works, and that Phase 2 requires the majority of capital investment.

In relation to this Cabinet was advised that before Phase 2 begins, this paper draws attention to further significant changes that have occurred since Council approved the project funding and provides options with a recommendation to stop the project.

Members spoke in support of the report but expressed regret over the costs incurred.

Cabinet members spoke in support of the report expressing the importance of utilising any opportunities to use what has already been laid should any such opportunity arise.

RESOLVED that Cabinet agrees the Preferred Option, to stop the project and not to proceed with Phase 2 of installation of fibre and ducting.

Voting: Unanimous

Portfolio Holder(s): Leader of the Council and Portfolio Holder for Dynamic Places

Deputy Leader and Portfolio Holder for Connected Communities

Reasons

(i)       Due to recent and potentially future volatility with interest rates, changes in market conditions and increases in construction costs there is now less certainty about the viability of the business case.

(ii)      The project does not meet the current administration’s criteria for PWLB borrowing.

(iii)     Derisks the ongoing project for the council and aligns with the current Corporate Strategy, ‘working with partners, removing barriers and empowering others’.