Agenda item

(a)  That the capital strategy of £259.0m and the associated Minimum Revenue Provision be approved and Recommended to full Council on 20th February 2020.

(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 £5.916m 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 of the report and the Minimum Revenue Provision principles in Section 7 be approved and recommended to full council on 20th February 2020.

(d)  That the appendices A and B detailing the capital programmes for the General Fund and the Housing Revenue Account be approved and recommended to full council on 20th February 2020.

(e)  The delegated authority be given to the Director of Finance & Resources, following consultation with the Lead Member for Housing & Community Safety and the Leader of the Council, to adjust the in year HRA borrowing limits to enable the potential acquisition of a HRA site for new housing.

A report was considered that set out the proposed capital strategy 2020 to 2024 and the Cabinet was asked to recommend the strategy and 2020/21 programme to Council on 20^th February 2020.

The core principles of the strategy were to be affordable, support the Five Year Plan priorities and maximise the Council’s assets.  A programme of £259m was proposed to 2024 which included £42.3m for improvement in the Council’s housing stock, £23.6m investment in schools, £32.3m in highways & transport schemes, £29.6m for James Elliman Homes and £20m for hubs as part of the Localities Strategy.  There was also provision the continue the Community Investment Fund to invest in neighbourhood level projects identified by Ward Members.

The Cabinet welcomed the ambitious programme which would help deliver the strategic priorities in the Five Year Plan.  The financing of the programme was discussed including the impact on borrowing.  It was noted that the total revenue financing required to fund the capital strategy’s borrowing requirements of £171.0m was £5.916m over four years.  The strategy was closely aligned to the Treasury Management Strategy to ensure the financing was in place to support the programme.

At the conclusion of the discussion, it was agreed to recommend approval of the Capital Strategy and capital programme to Council.

The Director of Finance & Resources reported that an opportunity had recently arisen to potentially acquire a site in 2019/20 through the HRA for housing.  Officers were proactively seeking to purchase the site and a further report was due to be provided to Cabinet.  It would require a change to the in year borrowing limits and it was agreed that delegated authority be given to the Director, following consultation with the relevant Lead Members, to adjust the in year HRA borrowing limits to enable the potential acquisition.

Recommended –

(a)  That the capital strategy of £259.0m and the associated Minimum Revenue Provision be approved.

(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 £5.916m 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 of the report and the Minimum Revenue Provision principles in Section 7 be approved.

(d)  That the appendices A and B detailing the capital programmes for the General Fund and the Housing Revenue Account be approved.

Resolved –

(e)  The delegated authority be given to the Director of Finance & Resources, following consultation with the Lead Member for Housing & Community Safety and the Leader of the Council, to adjust the in year HRA borrowing limits to enable the potential acquisition of a HRA site for new housing.