Issue - meetings

A report from the Executive Director - Resources is attached.  (Key decision – reference number 5666)

Cllr Tim Leaver (Cabinet Member for Finance and Procurement) introduced the report of the Executive Director – Resources, seeking recommendation to Council of the Ten Year Capital Strategy. The CIPFA requirements were for an annual capital strategy. The Council’s ten year plan by department was set out in Appendix A of the report. Of the total capital investment planned, the majority was funding by grants (non borrowing). A new Prudential indicator was proposed in response to new borrowing affordability measures.

The Leader of the Council re-iterated the Council’s commitment to borrowing to invest, and that a lot of match funding or grant was dependent on this commitment too.

DECISION:  The Cabinet agreed to:

I. Recommend that Council approves:

a. The 2024/25 – 2033/34 Capital Strategy

b. The delegation to Cabinet approval of projects up to £10m from the Pipeline Programme, provided the programme continues to fit within the affordability metrics

c. The use of the Prudential indicator “Ratio of Financing Cost to Net Revenue Budget” as the primary indicator for affordability of the Capital Programme with the target set at 10% to 12% for the first five years.

II. Note:

a. The final ten-year capital programme will be developed over the coming months and presented for approval in February 2024.

b. The resulting ratio of financing costs to net revenue budget indicator will be calculated as part of the development of the final ten-year capital programme and incorporated within the Medium-term financial plan and Treasury Management Strategy Statement for Council approval in February 2024.

The report sets out the options considered, if any, and the reasons for the recommendations and the decision.

(Key decision – reference number 5666)