This reports asks the Committee to recommend to Council the adoption of the Capital Strategy.

The Executive Director of Resources submitted a report asking  the Committee to recommend to Council the adoption of the Capital Strategy, as required by The Chartered Institute of Public Finance and Accountancy’ (CIPFA) revised Prudential Code for Capital Finance in Local Authorities.  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 of the Council.  The Capital Strategy provided a high-level 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 the Council’s approach to asset management planning, development and monitoring of the Capital Programme.  Appendix B to the Strategy set out a prioritisation matrix for new capital schemes.

The report explained that the Capital Strategy has been updated in several respects.  The most significant change related to the removal from the Capital Programme of further commercial property acquisition following new restrictions on borrowing from the PWLB.  The updated Strategy also provided a more balanced reflection of all asset types owned by the Council and clearer referencing to supporting strategies.  The report asked the Committee to note an updated Action Plan, attached at Appendix D to the Strategy, which identified areas of ongoing work required for the Council to become fully compliant with the CIPFA code requirements.  Actions completed on the previous action plan were also summarised in the report.

Items 93-95 were considered together to recommend to the Council meeting on 23 February 2021.

Resolved –

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

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