Agenda item

(a)  That the Capital Strategy of £165m be approved and Recommended to full Council on 19^th February 2015.

(b)  That it be noted that the notional costs of borrowing for the capital programme to the revenue budget will be an increase of up to £1.5m per annum commencing during the period of the capital strategy to fund borrowing and / or the reduction of investments of £23m.

(c)  That the principles underpinning the capital programme in paragraph 5.1.2 of the report and the Minimum Revenue Provision principles be approved.

(d)  That the appendices A to C detailing the capital programmes be approved (subject to these having approved Final Business Cases by the Capital Strategy Board).

The Assistant Director, Finance & Audit, introduced a report seeking approval of the Cabinet to recommend the Capital Strategy 2015-20 and Capital Programme 2015-16 to Council at its meeting on 19^th February 2015.

The core principles of the Strategy were noted, particularly ensuring that plans were affordable; supported the Five Year Plan outcomes; and maximised the Council’s assets to generate revenue savings or capital receipts.  The new items in the capital programme included investment in LED street lighting to drive out revenue cost and sustained investment in education and transport schemes.  The outcome of the Leisure Strategy would need to be incorporated once the outcome was agreed and the business case approved.

The Capital Strategy totalled £165m over the five year period with a borrowing requirement of £23m, which would be funded from internal balances rather than new borrowing.  Commissioners considered the proposal to support the borrowing requirement in this way and it was noted that lost investment income would be significantly less than the revenue cost of new borrowing despite the low interest rates.  The Cabinet noted that the notional cost of borrowing for the capital programme was £1.5m per annum and approved Minimum Revenue Provision statement detailed in paragraph 5.6 of the report.

A range of other issues were discussed including other invest to save projects which contributed to the Five Year Plan; the implications of the Community Infrastructure Levy; and the spending profile of the Community Investment Fund.  The Cabinet then agreed to recommend the Capital Strategy 2015-20 to Council on 19^th February 2015.

Recommended –

(a)  That the Capital Strategy of £165m be approved and Recommended to full Council on 19^th February 2015.

(b)  That it be noted that the notional costs of borrowing for the capital programme to the revenue budget will be an increase of up to £1.5m per annum commencing during the period of the capital strategy to fund borrowing and / or the reduction of investments of £23m.

(c)  That the principles underpinning the capital programme in paragraph 5.1.2 of the report and the Minimum Revenue Provision principles be approved.

(d)  That the appendices A to C detailing the capital programmes be approved (subject to these having approved Final Business Cases by the Capital Strategy Board).