David Northey (Service Director for Finance) provided an update and highlighted the following points:

a)    No progress had yet been made with regards to the capitalisation directive;

b)    He was still in regular contact with Ministry of Housing, Communities and Local Government (MHCLG) colleagues and was due to speak to them that week;

c)    The conclusion was expected towards the end of January 2025/early February 2025.

In response to questions it was further explained:

d)    MHCLG did not treat cases individually and Plymouth City Council was 1 of 19 Councils who applied for exceptional financial support, but he was pushing against that as Plymouth’s situation was more unique;

e)    The budget for 2025/26 could be set without an outcome, but this was not preferred.

David Northey (Service Director for Finance introduced this item and highlighted the following points:

a)    He had made a commitment to update the Committee on this issue;

b)    The Government were minded to give a capitalisation direction, but it was still going through the process included an independent review and a general Chartered Institute of Public Finance and Accountancy (CIPFA) review of governance and sustainability, the latter of which had been completed;

c)    The report was with the Ministry of Housing Communities and Local Government (MHCLG)  and an update had been requested, but he would keep the Committee up to date with any updates between meetings;

d)    Challenging with change of ministers following general election.

In response to questions, supported by Paul Dossett (External Auditor, Grant Thornton), it was further explained:

e)    Governance improvements had been suggested in a July 2021 report from Grant Thornton looking at the Santander and Capitalisation transactions, which had been actioned;

f)     The stance of the new Minister of State had not been confirmed, but the previous minister had been minded;

g)    There was no evidence to suggest anything inappropriate had taken place and there was a full audit trail for the money.

The Chair reminded Committee members of the importance of not being political.