To recommend to Council for approval the revised capital investment budget and capital strategy for 2026/27 onwards.

It was noted that Councillor Harvey had to leave the meeting and Councillor Hitchiner acted as substitute for Group Leader for the remaining items.

Councillor Stoddart, cabinet member for finance and corporate services introduced the report. 

The Cabinet received the final version of the 2026/27 Capital Investment Budget and accompanying Capital Strategy. It was noted that the capital programme reflects long?term investment (over one year) and that inclusion in the programme does not constitute approval to proceed; all projects will be subject to full governance and business case processes.

No changes had been made since the draft report was previously presented on 20 January 2026.

Public consultation (November to December 2025) showed strong support for the proposed additions, particularly for maintaining investment in highways maintenance and street lighting. The Scrutiny Management Board (SMB) reviewed the programme on 23 January 2026 and had no comments on the capital programme.

The proposed additions to the 2026/27 Capital Programme will enable the Council to:

• Increase temporary and emergency accommodation (£10m).
• Address revenue pressures through alternative school provision and Pupil Referral Units.
• Improve technological infrastructure and innovation.
• Support housing growth through new infrastructure.
• Strengthen school and property assets.
• Improve public rights of way access.
• Continue investing in the county’s road network.

Appendix A set out the 14 capital proposals totalling £44m, funded through prudential borrowing, capital receipts, and revenue reserves.

It was noted that responding to housing needs remains a high priority; an additional £10m has been allocated to deliver new housing solutions, reducing reliance on temporary accommodation and lowering revenue costs by £1.7m per year. The Strategic Housing Team has supported the delivery of over 1,491 homes since April 2020.

A new £5m Historic Building Fund has been created to support works at key heritage buildings. The S151 Officer will allocate funds once final contract prices are confirmed.

A review of the current capital programme took place which has removed or re?funded several projects (identified at paragraph 13 of the report), releasing £2.65m and reducing reliance on borrowing.

The Capital Strategy (Appendix D) has been developed in line with CIPFA guidance and outlines the Council’s approach to prioritisation, borrowing, and risk.

The Cabinet Member endorsed the report, highlighting alignment with the Council Plan and the administration’s commitment to delivering for Herefordshire, and commended the three recommendations to Cabinet for approval.

No comments from cabinet members. 

Group Leaders were invited to offer their views:

The Liberal Democrat Group outlined their views and noted that:

Support was expressed for progressing Phase One of the bypass, noting it should have been completed years earlier to avoid the current revenue impact. They also welcomed the temporary accommodation investment for affordable housing, recognising the benefits for homeless individuals and families. However, they highlighted the absence of significant investment in expanding social and affordable housing within the capital programme. Although work on a housing development company had been ongoing since December 2023, and a business plan indicated longer?term viability, no capital funding had been allocated.  ...  view the full minutes text for item 66