Issue - decisions

Matter for Decision

 

This report presents the capital strategy of the council together with a summary capital programme for the General Fund (GF) and Housing Revenue Account (HRA). The previous capital strategy was approved by Council on 23 February 2023. The strategy is focused on providing a framework for delivery of capital expenditure plans over a 10-30 year period. These plans cover spending on operational assets to support service delivery and on investments which provide an income for the council alongside meeting the council’s objectives in relation to economic development and place-making, regeneration and climate change mitigation. Governance arrangements are also outlined in order to ensure the capital programme continues to deliver value for money.

 

Decisions of Executive Councillor for Finance and Resources

 

The Executive Councillor is asked to:

·       Recommend the capital strategy to Council; and

·       Note the summary capital programme

 

Reason for the Decision

 

As set out in the Officer’s report.

 

Any Alternative Options Considered and Rejected

 

Not applicable.

 

Scrutiny Considerations

 

The Committee received a report from the Deputy Chief Finance Officer.

 

The Deputy Chief Finance Officer and the Chief Finance Officer said the following in response to Members’ questions:

      i.          Regarding heritage assets, within the capital strategy the approached decision making about the capital programme, part of the process of producing that document was to understand that there may be non-financial considerations that form part of the Councils overall objectives.

     ii.          There was a recognition within the capital strategy of the alignment of the Councils corporate plan. The capital strategy was about ensuring there were prudent arrangements for financing that expenditure.

   iii.          Regarding the restrictions in place in terms of the acquisition of assets for commercial benefit or investments for yield, the government guidance on the topic is clear in prohibiting investments which were purely for yield however it does give local authorities through their section 151 officer the flexibility to consider other motivations regarding proposed investment which could include regeneration. The proceeds of any regeneration were required to be recycled rather than fund delivery of future services.

   iv.          Councillor Bennett requested a list of the Council’s peppercorn leases.

    v.          The change assurance team is led by the Head of the Shared Internal Audit Service. Does not currently have the list available of members however it had representatives from Finance, HR, Legal, Procurement and others. A full list could be provided.

   vi.          The commercial property income target was less than 50% because it was seen as a risk. Whereas income received from government was seen as more secure.

 vii.          In the general fund the level of reserves would be reduced in the next year or so due to significant investments being made. The report showed figures that do not include business rates growth. That would increase the need for the Council to borrow in order to deliver the capital expenditure that was set out in the report.

 

The Scrutiny Committee unanimously approved the recommendations.

 

The Executive Councillor for Finance and Resources approved the recommendations.

 

Conflicts of Interest Declared by the Executive Councillor (and any Dispensations Granted)

 

No conflicts of interest were declared by the Executive Councillor.