Further to Minute 62 of the Policy Committee held on 17 February 2025, the Director of Finance submitted a report setting out the draft Capital Strategy 2025/26, 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. 

The Strategy was informed by the Council’s priorities and links to other key strategy documents notably the Corporate Plan, Medium Term Financial Strategy (MTFS), Treasury Management Strategy, Asset Management Strategy, Corporate Investment Strategy and Carbon Reduction Strategy.

The Council’s approach to asset management planning, development, and monitoring of the Capital Programme’s delivery was set out in the Strategy.  The figures in the various tables within the Strategy, most particularly the Capital Programme itself, had been updated to reflect the latest position consistent with the MTFS report (see Minute 44 above). The Action Plan at Appendix 1 Annex D had similarly been refreshed. The Director of Finance would keep this under review during the year and would bring forward any changes that may be required.

The Capital Programme Board was introduced in December 2022 to increase oversight of the Capital Programme and its delivery. Terms of Reference for the Board were attached to the report at Appendix 1, Annex B.

The proposed Action Plan at Appendix 1, Annex D of the Strategy identified three areas of ongoing work required for the Council to remain compliant with the CIPFA Code requirements. These were:

·     Developing knowledge of the Council’s existing asset base;

·     Identifying what assets were needed in the future;

·     Developing and implementing new systems and processes to enable the transition.

The following motion was moved by Councillor Terry and seconded by Councillor Leng and CARRIED:

Resolved –

(1)           That the Capital Strategy 2025/26, as attached at Appendix 1 to the report, be approved;

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