This report sets out the draft Capital Strategy 2020/21 for recommendation to Council.

The Director of Resources submitted a report setting out a draft Capital Strategy 2020/21 for recommendation to full Council on 25 February 2020.  The Strategy was attached to the report at Appendix 1.

The report noted that the CIPFA 2017 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.  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.

The Strategy set out the Council’s approach to asset management planning including its policy on the acquisition of investment properties, development and monitoring of the Capital Programme and the reasons for the Council departing from guidance from the Ministry of Housing Communities and Local Government and CIPFA on investment in commercial properties and lending to housing associations.

The report noted that Appendix D of the Strategy was a proposed Action Plan, which identified four areas where work was required for the Council to become fully compliant with the CIPFA code requirements. These were developing knowledge of the existing asset base, identifying what assets were needed in the future, developing and implementing new systems and processes which enabled the transition to become fully compliant with the code requirements, and reviewing current capacity within the organisation.

Recommended –

(1)     That Council approve the Capital Strategy attached at Appendix 1;

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