Issue - meetings

RECOMMENDED (TO COUNCIL):

1.           That the Capital Investment Strategy be approved including:

a)         the Capital Programme and Capital Programme Financing (Appendices A and B to the report);

b)        the Minimum Revenue Provision (MRP) Policy Statement (Appendix E of the report);

c)         the Flexible Use of Capital Receipts Strategy (Appendix Gof the report); and

d)        the prudential indicators detailed in the report and Appendix F.

Councillor Cutler (Cabinet Member for Finance and Performance) moved that the recommended minute of Cabinet be approved and adopted (seconded by Councillor Tod, Leader and Cabinet Member for Asset Management).

Council proceeded to ask questions regarding the matters in the recommended minute and report.  There was then no debate before Council then considered the recommendations before it.

RESOLVED:

That the recommended minute of Cabinet held 12 February 2025 (as follows) be approved and adopted:

1.           That the Capital Investment Strategy is approved including:

a)                 the Capital Programme and Capital Programme Financing (Appendices A and B to the report);

b)                 the Minimum Revenue Provision (MRP) Policy Statement (Appendix E of the report);

c)                 the Flexible Use of Capital Receipts Strategy (Appendix G of the report); and

d)                 the prudential indicators detailed in the report and Appendix F.

That Cabinet recommends to Council*

1.       That the Capital Investment Strategy be approved including:

a)      the Capital Programme and Capital Programme Financing (Appendices A and B to report CAB3495);

b)      the Minimum Revenue Provision (MRP) Policy Statement (Appendix E of the report);

c)       the Flexible Use of Capital Receipts Strategy (Appendix Gof the report); and

d)      the prudential indicators detailed in the report and Appendix F.

That Cabinet:

2.       That, subject to Council approval of the capital programme, the following capital expenditure in 2025/26 be approved:

a)    IMT equipment and software (£95,000) as detailed in paragraph 11.8.6 of the report.

3.       That the requirement to ensure Members have the right knowledge and skills to undertake their governance role be noted and that the ongoing support and training offered to members is continued and enhanced as required.

*NB recommendations to Council are not subject to call-in.

Councillor Cutler introduced the report and advised that the report had been considered by Scrutiny Committee on 4 February and the minutes of that meeting had been circulated to all present and published on the web here.  The Committee had asked a number of questions which had been responded to at the meeting.

At the invitation of the Leader, Councillor Lee addressed Cabinet as summarised briefly below.

He emphasised the importance of increasing the understanding of potential to maximise income from the council’s assets and noted that the Scrutiny Committee and Policy Committee chairs would be meeting to consider this further.  He also referenced consideration of possible future ideas for the use of the Guildhall building.

Councillors Cutler and Tod responded to the comments made.

Cabinet agreed to the following for the reasons set out in the report and outlined above.

RECOMMENDED (TO COUNCIL):

1.           That the Capital Investment Strategy be approved including:

a)         the Capital Programme and Capital Programme Financing (Appendices A and B to the report);

b)        the Minimum Revenue Provision (MRP) Policy Statement (Appendix E of the report);

c)         the Flexible Use of Capital Receipts Strategy (Appendix Gof the report); and

d)        the prudential indicators detailed in the report and Appendix F.

RESOLVED:

2.           That, subject to Council approval of the capital programme, the following capital expenditure in 2025/26 be approved:

a)    IMT equipment and software (£95,000) as detailed in paragraph 11.8.6 of the report.

3.           That the requirement to ensure Members have the right knowledge and skills to undertake their governance role be noted and that the ongoing support and training offered to members is continued and enhanced as required.

RECOMMENDATION:

It is recommended that scrutiny committee comment on the proposals within the attached cabinet report, ref CAB3495 which is to be considered by cabinet at its meeting on the 12 February 2025.

Councillor Neil Cutler, Cabinet Member for Finance and Performance introduced the report, ref CAB3495 which set out proposals for the Capital Investment Strategy 2025 - 2035, (available here).  The introduction included the following points.

1.    The report set out the Council's capital spending programme and the principles which underpinned it to deliver the desired outcomes, as set out in the Council plan.

2.    It detailed the overall programme for the next 10 years, how it was financed, the governance around it, the appetite for risk, and the impact on the Council's medium-term financial strategy.

3.    The capital programme totalled £421.1 million over the next 10 years, of which £37.9 million was general fund and £383.2 million related to the HRA.

4.    Appendix A provided capital programmes by project divided into "Approved" and "Subject to appraisal". Key projects were also detailed in the report.

5.    The strategy set out the approval process and project programme management protocols.

6.    The report included several prudential indicators as required by the CIPFA Prudential Code and the Ministry for Housing Communities and local governments' statutory investment guidance.

Liz Keys, Director (Finance) provided the committee with an update which included the following:

1.    The report included potential indicators required under the Prudential Code and the statutory investment guidance.

2.    The code required the Council's Chief Financial Officer to consider the affordability and risk associated with the capital programme.

3.    The proposed programme was affordable, sustainable and prudent, based on the Council's history of managing its capital assets.

The committee was asked to comment on the proposals within the attached cabinet report, ref CAB3495, which was to be considered by the cabinet at its meeting on 12 February 2025.

The committee proceeded to ask questions and debate the report. In summary, the following matters were raised.

1.    A question was asked regarding why the general fund capital expenditure tailed off over the next few years.

2.    Whether there were any plans to sell more Council assets to fund further priority investments.

These points were responded to by Councillor Cutler, Cabinet Member for Finance and Performance, and Liz Keys, Director (Finance) accordingly.

RESOLVED

1.    That the report be noted.

2.    That cabinet considers the committee’s comments raised during the discussion of the item.