Report by Director of Finance

Further to Minute 54 of the Policy Committee held on 20 February 2023, the Director of Finance submitted a report setting out the draft Capital Strategy 2023/24, which was attached to the report at Appendix 1.

The report noted that the CIPFA 2021 Prudential and Treasury Management Code required the Council to prepare a Capital Strategy report which set out the Council’s capital requirements arising from policy objectives, as well as the associated governance procedures and risk appetite of the Council.  The Strategy provided an overview of how capital expenditure, capital financing and treasury management activity contributed to the provision of services; along with an overview of how associated risk was managed and the implications for future financial sustainability.  It showed how revenue, capital and balance sheet planning were integrated and set out, among other things, the Council’s approach to asset management planning, development and monitoring of the Capital Programme. 

This year, the Capital Strategy had been subject to updates arising from the revised Prudential Code for Capital Finance in Local Authorities 2021. The figures in the various tables, most particularly the Capital Programme itself had been updated to reflect the latest position consistent with the MTFS report.  During 2022/23, a Capital Programme Board had been established to increase oversight of the Capital Programme and its delivery. Terms of Reference for the Board were included at Appendix C to the Strategy document.

The revised Code also clarified that non-treasury management investments would need to be reported as part of the Capital Strategy rather than within the Treasury Management Strategy. Consequently, where the Council had loaned funds to or held equity investments in its wholly owned companies to facilitate service provision/investment this was now incorporated into the Capital Strategy (Appendix 1 - Section 4). Appendix A to the Strategy set out a prioritisation matrix for new capital schemes.  The proposed Action Plan at Appendix D of the Strategy identified four areas of ongoing work required for the Council to remain compliant with the CIPFA Code requirements.

The following motion was moved by Councillor Brock and seconded by Councillor Ennis and CARRIED:

Resolved –

(1)          That the Capital Strategy 2023/24, as attached at Appendix 1 to the report, be approved;

(2)          That the updated Action Plan that forms Appendix D of the Capital Strategy (Appendix 1) be noted, together with the associated financial implications.