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 programme will be funded will be picked up at a later date and clarification will be provided regarding paragraph 24. 

It was unanimously resolved that Cabinet:

(A) 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.

(B) For (i) the land assets listed in paragraph 14 of this Report and (ii) all further small land assets or building with an individual valuation of £500k and under, delegates:

    i. to the section 151 officer to undertake an options analysis in relation to each land asset; and

   ii. to the Cabinet Member for Community Services & Assets to consider the options and decide whether to retain or dispose of each land asset in each case to ensure            that the Council maximises the capital receipt for the land