Agenda item

Decision:

1.     Approved the new bids set out in Appendix 2 for inclusion in the capital programme as indicated, subject to Council approval.

2.     Approved removing the Bright Hill scheme on the HRA approved and provisional programmes as previously reported to Councillors; and

3.     Recommended (to Full Council meeting on 7 February 2024)

(1)         That the General Fund and HRA capital estimates, as shown in appendices 3 to 12, as amended to include such bids as may be approved by the Executive at its meeting on 25 January 2024, be approved.

(2)         That the Minimum Revenue Provision policy, referred to in section 9 of this report, be approved.

(3)         That the capital and investment strategy, specifically the investment strategy and Prudential Indicators contained within this report and Appendix 1, be approved.

(4)         That the updated flexible use of capital receipts policy, as set out in Appendix 8, be approved.

Reason(s):

To enable Council, at its budget meeting on 7 February 2024, to approve the capital and investment strategy for 2024/25 to 2028/29, and the funding required for the new capital schemes proposed.

Other options considered and rejected by the Executive:

The alternative investment options set out in paragraph 22 of the report.

Details of any conflict of interest declared by the Leader or lead councillors and any dispensation granted:

None.

The capital and investment strategy gave an overview of how capital expenditure, capital financing and treasury management activity contributed to the provision of local public services.  The strategy also detailed how associated risks were managed and any implications for future sustainability.

The Executive considered the report that included details of the capital programme.  It was noted that £96.9 million had been removed from the capital programme by Full Council in December 2023 which left around £212 million of capital investment remaining. There was just under £10 million worth of new bids/mandates submitted for approval. The report set out the requirements of the Prudential Code and the investment strategy covering treasury management investments, service investments and commercial investments. 

In terms of the Housing Revenue Account (HRA), £121 million of capital investment was proposed for the next five years to support development projects to build or acquire new housing (including Weyside Urban Village).

The report also covered the requirements of the Treasury Management Code and the prevailing DLUHC Statutory Guidance. Treasury Management income for the coming year was £3 million which was slightly down on what had been expected as interest rates had fallen.

The flexible use of capital receipts had been extended for the coming year should the council wish to do so.

The Minimum Revenue Provision (MRP) remained unchanged from last year’s budget.

The report had been considered by the Corporate Governance and Standards Committee on 18 January 2023 and the comments arising from that meeting were set out in the Supplementary Information Sheet. A typo (missing words ‘budget process’) was noted on page 9 of this supplementary paper which would be corrected before the report was submitted to Full Council. The sentence referred to an individual councillor’s observational comment of the existing scrutiny process in regard to the budget. The Executive was informed that the scrutiny process for the present budget was in line with that conducted over the previous 4-5 years. There could be future recommended changes to this process as a result of the Council’s ongoing close monitoring of all expenditure.

It was observed that close monitoring of expenditure and the actions undertaken by the Council to manage its budget had resulted in a significant reduction in projected expenditure of £200 million. However, the portfolio holder for Finance and Property acknowledged that there was still much work to be done to further reduce the Council’s outgoings.

The Executive,

RESOLVED:

1.     To approve the new bids set out in Appendix 2 to the report submitted to the Executive for inclusion in the capital programme as indicated, subject to Council approval.

2.     To approve the removal of the Bright Hill scheme on the HRA approved and provisional programmes as previously reported to Councillors.

3.     To recommend (to Full Council meeting on 7 February 2024):

(a)      That the General Fund and HRA capital estimates, as shown in appendices 3 to 12, as amended to include the new bids referred to in 1. above, be approved.

(b)     That the Minimum Revenue Provision Policy, referred to in section 9 of the report submitted to the Executive, be approved.

(c)      That the capital and investment strategy, specifically the investment strategy and Prudential Indicators contained within the report and Appendix 1, be approved.

(d)     That the updated flexible use of capital receipts policy, as set out in Appendix 8, be approved.

Reason(s):

To enable Council, at its budget meeting on 7 February 2024, to approve the capital and investment strategy for 2024/25 to 2028/29, and the funding required for the new capital schemes proposed.