Agenda item

To set out the Capital Strategy for 2024/25 through to 2028/29 and thereby the proposed 2024/25 capital programme, including identified capital investment priorities, together with the indicative capital programme for 2025/26 through to 2028/29.

Consideration was given to a report of the Director of Finance which sets out the Capital Strategy for 2024/25 to 2028/29 and thereby the proposed 2024/25 capital programme, including identified capital investment priorities, together with the indicative capital programme for 2025/26 to 2028/29, having regard to the resources available over the life of the programme.

The Council’s Capital Strategy and capital programme are set over a five year timeframe. The proposed Capital Strategy and programme for 2024/25 to 2028/29 takes the essential elements of the 2023/24 to 2027/28 and previous years’ strategies and programmes and moves them forward in the context of the financial and political environment for 2024/25. The Strategy look at those projects that are likely to run beyond the five year strategy. This covers a timeframe for the 10 years from 2029/30 to 2038/39.

The Capital Strategy was presented at Appendix 1 of the report. It was noted that The Strategy is aligned with the Creating a Better Place programme. This also incorporates the Medium-Term Property Strategy and Housing Strategy, aiming to deliver its ambition in ways that contribute to a reduction in carbon emissions in support of the Council’s Green New Deal strategy.

The Council has set out its capital programme for the period 2024/25 to 2028/29 based on the principles of the Capital Strategy. The Capital Programme and Capital Strategy are influenced by the level of resources considered available. As at the month 8 the anticipated capital expenditure over the five year life of the 2023/24 to 2027/28 strategy was £332.173m, taking 2023/24 aside (£78.633m) this leaves £253.540m for the remainder of the approved 2024/25 to 2027/28 capital programme. The capital programme includes proposed expenditure for 2024/25 of £99.683m of which the largest category is £83.226m of expenditure on regeneration, schools, transport and infrastructure projects within Place and Economic Growth Directorate. Total expenditure decreases to £81.076m, £34.838m, £35.640m and £2.000m in 2025/26, 2026/27, 2027/28 and 2028/29 respectively.

The report also set out the main sources of grant funding available to support the Capital Programme. The 2023/24 capital programme relies on £33.506m of ringfenced and £10.145m of un-ringfenced government grants. As in previous years, a major source of financing remains prudential borrowing. The amount required in 2024/25 (£49.638m).

There will be a continued review of capital spending requirements as the Council has further regeneration ambitions, but affordability and deliverability will be a key consideration in this regard. It is, however, possible that the capital position may change prior to the start of 2024/25 and during the year: Therefore, the overall capital programme position will be kept under review and any new information regarding funding allocations will be presented to Members in future reports.

RESOLVED that that the following recommendations be accepted and commended to Cabinet:

1.  The Capital Strategy for 2024/25 to 2028/29 at Appendix 1 of this report and summarised at section 2.1 of the report.

 2. The capital programme for 2024/25 and indicative programmes for 2025/26 to 2028/29 at Annex C of Appendix 1 and summarised at sections 2.2 to 2.6 of this report.

 3.  The Flexible Use of Capital Receipts Strategy as presented at Annex D of Appendix 1 of the report

4.  The Minimum Revenue Provision (MRP) Policy Statement 2024/25 and method of calculation and Prudential Indicators detailed in Appendix 2 of the report