To approve the revised capital investment budget and capital strategy for 2024/25 onwards.

Council considered a report by the Cabinet Member Finance and Corporate Services to approve the 2024/25 capital investment budget and capital strategy update.

The Cabinet Member Finance and, Corporate Services moved the report and proposed the recommendations.

The Leader seconded the report and the recommendations.

Council debated the report.

The 2024/25 capital investment budget and capital strategy update was put to the recorded vote and carried by a simple majority.

FOR (39): Councillors Andrews, Baker, Bartrum, Biggs, Boulter, Bramer, Cole, Cornthwaite, Crockett, Dave Davies, Durkin, Dykes, Fagan, Foxton, Gandy, Hamblin, Highfield, Hitchiner, Hurcomb, James, Kenyon, Lester, Mason, Matthews, O’Driscoll, Owens, Phillips, Dan Powell, Ivan Powell, Price, Proctor, Stark, Stoddart, Stone, Swinglehurst, Thomas, Tillett, Allan Williams and Robert Williams.

Against (5): Bartlett, Chowns, Heathfield, Spencer and Woodall.

Abstentions (4): Gennard, Oliver, Peberdy and Simmons.

RESOLVED: That

Council:

1.        Approve the revised capital programme for 2024/25 attached at appendix C; and

2.        Approve the capital strategy at appendix D.

There was an adjournment at 11:12 a.m.; the meeting recommenced at 11:29 a.m.

Councillors Carwardine and Engel joined the meeting at 11:29 a.m.

To recommend to Council for approval the revised capital investment budget and capital strategy for 2024/25 onwards.

The Cabinet member for finance and corporate services introduced the report. It highlighted there was one further addition from the Department of Transport of a grant for £3.36m over a two year period to address pot holes. It was confirmed that inclusion of a project in the capital programme is not approval to proceed, each project will be subject to its own governance, a full business case will be presented for approval where required and in full compliance with the Council’s contract procedure rules.  The additional projects and further detail were set out for Community and Economy.  Confirmed that the Capital Strategy will be updated in line with the County Plan 2024-2028 and the Delivery Plan with the aim to benefit the community, with a community impact assessment to be included in the decision report for any new capital scheme commencing. 

There were no comments from Cabinet members. 

Group leaders gave the views of their groups.  Concern was expressed regarding borrowing for capital projects when interest rates are high and the impact on council tax payers in the future; ensuring that sensible value for money policies are implemented to nurture growth for local businesses; the governance regarding the road programs being reinserted into the Capital programme and ensuring that they are part of the Council’s policy framework. 

In response to the queries it was noted that the Council has lower levels of borrowing than other authorities and to achieve goals, which cannot be achieved solely from the revenue budget, financial mechanisms are in place to enable this.  It was confirmed that any help was welcomed to ensure the Council achieves best value for money and it is obligatory on all Councillors to do so.  In regard to allocation of capital for the Southern Link Road it was confirmed that on 8 December (2023) there was a resolution to allocate monies to the project. 

It was unanimously resolved that:

That Cabinet recommends the following to Council

I.               To approve the revised capital programme for 2024/25 attached at appendix C; and

II.              Approve the capital strategy at appendix D.

To recommend to Council for approval the revised capital investment budget and capital strategy for 2024/25 onwards.

The Cabinet member for finance and corporate services introduced the report, the principal points were raised.

That full Council on 8 December 2023 passed the amendment to the 2023/24 Capital Programme shown at Appendix C. A correction was noted that the updated capital programme title included at appendix C (which is the proposed capital programme from April 2024) should read, Capital Programme position April 2024/25.

Appendix A, along with the outline strategic business cases at Appendix E provide details of the proposed additions to the existing capital programme. Seven capital investment budget proposals totalling £7.33m have been identified and will be funded by prudential borrowing.  Noted that inclusion in the capital programme is not approval to proceed.

Appendix D the Capital strategy, provides a clear and concise view of how the council determines it priorities for capital investment and this will be updated in line with the county plan. 

The council is undertaking a Corporate Asset Review which seeks to identify surplus areas of land and assets.  Seven sites were noted to have the potential to bring forward residential or commercial development.

The Medium Term Financial Strategy and Treasury management Strategy supports the new borrowing which includes an estimation of £6.7m of new prudential borrowing per annum as detailed at paragraph 24.  Outline strategic business cases for each of the new projects are detailed at Appendix E. 

Monthly budget control meetings will provide assurance on robustness for all Capital projects. 

No comments were made by cabinet members. 

Group leaders gave the views of their groups.  There was support for the additions to the programme and the recommendations.  It was noted that a general system should be purchased for the planning department rather than a bespoke system and if council land is sold, benefit for the community should be considered.  An additional appendix to show the difference between the existing and proposed budget was requested to enable residents to clearly see the differences. 

Clarification was sought regarding when central government will be approached in respect of funding for the Southern Link Road and queried the figures published in these papers and those at full council. Queried the £5.4m funding for projects within Economy.  Concerns were expressed that funding is being used for undeliverable schemes and it is not made clear that there will borrowing in the future to deliver projects now (referred to paragraph 24).

In response to queries it was noted that investment in the database is needed for planning. Confirmed that housing land is important and acknowledged the demand for housing, progressing these sites was important to achieve the best outcomes for residents.  Regarding the Southern Link Road finances and development, it has been made clear to central government that schemes will be coming forward and confirmed officers are putting forward a comparison of the routes and schemes which will come in January and February 2024. In respect of the change in figures for the Southern Link Road clarification will be provided. Lastly, the comment regarding how the capital  ...  view the full minutes text for item 65