Agenda item

(CSP: BEC, SLE, P&S, HQL, MEC, SLE2, P&S1, HQL1 and MEC1)

Purpose: To outline the five year Capital Strategy for 2016 to 2021, including the Minimum Revenue Provision (MRP) Statement and the Asset Management Plans for Property and Highways, and to set out the funding framework for the Council’s five year Capital Programme for 2016/17 to 2020/21.

Resolved that the Capital Strategy and Programme 2016/17 to 2020/21 be recommended to Council for approval.

This decision is not subject to call in as:

·      the item is due to be referred to Council for final approval.

therefore it will be implemented immediately.

Councillor Roger Croft presented the report to the Executive (Agenda Item 4) which set out the draft Capital Strategy and Programme covering the five year period 2016/17 to 2020/21. Its aim was to ensure that the Council’s highest priorities for capital investment could be delivered within the financial constraints which the Council faced. 

The proposed Capital Programme would help to deliver the key priorities set out in the Council Strategy 2015-2019, including investment over the next five years in the following key areas:

Better Educated Communities: £57.1 million for new school places and improvements to school buildings;

A Stronger Local Economy: £55 million for maintenance and improvement of highways and £1.5 million to facilitate the delivery of superfast broadband across West Berkshire;

Protect and support those who need it: £11.6 million for occupational health equipment, home adaptations and supported living for older people and people with physical, sensory or learning disabilities and support for looked after children;

Maintaining a high quality of life within our Communities: £3.8 million for maintenance and improvement of parks, open spaces, sporting and cultural facilities.

The Capital Programme would allow for total expenditure over five years of £140.4 million, of which £20.9 million would be from developers contributions, £80.7 million would be funded from other external sources of funding – mainly government grants, and £38.8 million, or an average of £7.8 million per year, would be funded from Council resources. Council resources included an estimated £1.25 million capital receipts from assets which were expected to be sold over the following two years. The remainder would be funded from prudential borrowing in line with the revenue provision for capital financing assumed in the current Medium Term Financial Strategy (MTFS).

Any schemes in the programme which had not yet been committed would be subject to further review by Officers and Members to determine whether any savings could be made in the Capital Programme which could generate additional revenue savings, without serious detriment to the Council’s objectives. Any further changes which were proposed to the 2016/17 Programme would be reported to the next meeting of the Executive.

Councillor Lee Dillon queried the absence of an aim for income generation. While the potential for the Council to sell its assets was mentioned, the report did not consider the possibility of the Council letting its assets in order to achieve income. Councillor Croft pointed out that the Council’s physical assets were limited, but made the suggestion that this matter be discussed further at the next meeting of the Treasury Management Group. Officers would be asked to schedule this.

Councillor Alan Macro referred to paragraph 1.4 of the Capital Strategy document which highlighted that the Capital Programme would help to deliver many of the Council’s strategic priorities. This paragraph listed additional primary places in Hungerford and Newbury as one of these priorities but made no mention of additional primary places in Theale, although this was referenced in the more detailed Capital Programme. Councillor Croft agreed to ask Officers to ensure that an appropriate reference was made in paragraph 1.4.

The provision of extra care housing in the east of the district, referred to in paragraph 1.5 of the report, was also in line with the Council’s strategic priorities, but was not specifically included in the detailed Capital Programme and Councillor Macro queried whether this was an omission as investment was needed in this area. Councillor Croft noted this omission and Councillor Hilary Cole agreed that provision of housing in the east was an objective of the Council Strategy and a commitment of the Conservative’s Manifesto

RESOLVED that the Capital Strategy and Programme 2016/17 to 2020/21 be recommended to Council for approval.

Reason for the decision: To outline the five year Capital Strategy for 2016 to 2021, including the Minimum Revenue Provision Statement and the Asset Management Plans for Property and Highways, and to set out the funding framework for the Council’s five year Capital Programme.

Other options considered: Not applicable.