This report sets out the Capital Strategy 2025/26 for recommendation to Full Council.

The Committee received a report setting out for recommendation to Council the draft Capital Strategy 2025/2026, which was attached to the report at Appendix 1.

The report noted that the Chartered Institute of Public Finance and Accountancy (CIPFA) revised Prudential Code for Capital Finance in Local Authorities 2021 required the Council to produce 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.

The figures in the various tables within the Capital Strategy, most particularly the Capital Programme itself, had been updated to reflect the latest position consistent with the MTFS report (Minute 61 refers).  The Action Plan at Annex D to the Capital Strategy had been refreshed and the Director of Finance would keep this under review during the year and bring forward any changes that might be required. The Terms of Reference for a Board introduced in December 2022, to increase oversight of the Capital Programme and its delivery, were included at Annex B.

Progress against actions still outstanding were reported on the face of the Action Plan along with revised target completion dates. Work to understand the existing General Fund property asset base has been completed and a three-year rolling programme of review has been implemented to keep the knowledge up to date. In addition, to meet the Consumer Standards requirements regarding the accurate, up to date and evidenced understanding of the condition of the housing assets, work was being undertaken to secure a provider to undertake stock condition surveys and refresh the data set on all the council’s residential housing assets within the Housing Revenue Account (HRA). The Capital Programme Board under the leadership of the Director of Finance had met regularly throughout the year to progress the programme of work identified in the Action Plan.

Items 61-63 were considered together for recommendation to the Council meeting on 25 February 2025.

Resolved –

(1)       That the Council be recommended to adopt the Capital Strategy as attached at Appendix 1 to the report;

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