Agenda item

(a)  That the capital strategy of £297m and the Minimum Revenue Provision be approved and Recommended to full Council.

(b)  That it be noted that the notional costs of borrowing for the capital programme to the revenue budget would be an increase of up to £4.2m per annum commencing during the period of the capital strategy to fund borrowing.

(c)  That the principles underpinning the capital programme in paragraph 5.1.2 and the Minimum Revenue Provision principles in 5.6 be approved.

(d)  That Appendices A and B to the report detailing the capital programmes be approved (subject to these having approved Final Business Cases by the Capital Strategy Board).

The Leader of the Council introduced a report that sought agreement to recommend the Capital Strategy 2017/23 to full Council on 23^rd February 2017.  The programme totalled £297m worth of investment, comprised of £221m of General Fund expenditure and £75m in the Housing Revenue Account.

The Assistant Director Finance & Audit explained the key elements of the programme and detailed how it would be financed, including the revenue implications of borrowing and the use of £11m in Section 106 receipts.  The new items in the programme included expansions to primary and secondary schools; the new leisure centre development and refurbishment of other facilities; a major housing investment programme; and regeneration schemes such as two new hotels on the Old Library Site and the development of the Thames Valley University site.  The Community Investment Fund (CIF) budget for 2017/18 was proposed to increase to £1.050m to spend on neighbourhood enhancements and other schemes identified by Members.  It was noted that the CIF figure in Appendix A would be amended to the revised figure of £1.050m.

Commissioners’ attention was drawn to the proposed change in Minimum Revenue Provision policy set out in section 6 of the report.  The changes to move to the annuity asset life method had been proposed following a review and had been recommended by the Council’s financial advisors.  The effect was a credit of approximately £3.6m over 10 years arising from previous overprovision.  Speaking under Rule 30, Councillor Anderson asked for clarification of the figures stated in the Capital Strategy report and provision made in the Revenue Budget and this was explained by the Assistant Director Finance & Audit.

Speaking under Rule 30, Councillor Swindlehurst queried why the proposed Cippenham Community Centre extension had been removed from the capital programme.  It was responded that the business case had not been approved and the Member was invited to contact the Leader directly for further information.

At the conclusion of the discussion, the Cabinet agreed to recommend the Capital Strategy 2017/23 to full Council.

Recommended –

(a)  That the capital strategy of £297m and the Minimum Revenue Provision be approved and Recommended to full Council.

(b)  That it be noted that the notional costs of borrowing for the capital programme to the revenue budget would be an increase of up to £4.2m per annum commencing during the period of the capital strategy to fund borrowing.

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

(d)  That Appendices A and B to the report detailing the capital programmes be approved (subject to these having approved Final Business Cases by the Capital Strategy Board).