Agenda item

To consider the proposed Capital Strategy and the supporting funding framework.

The Committee considered the report (Agenda Item 9) which outlined the Capital Strategy and the supporting funding framework, providing a high level overview of how capital expenditure, capital financing and treasury management activity contributed to the provision of local public services along with an overview of how associated risk was managed and the implications for future financial sustainability.

Councillor Iain Cottingham (Portfolio Holder for Finances and Resources) outlined the vision of the Capital Strategy which was to develop the Council’s core strengths with a focus on Social Care, Education and local infrastructure improvements such as road enhancements and flood prevention. The majority of capital spend was directed towards these priority areas.

The capital programme’s financial breakdown was outlined. This was made up of £10.4m of Council funding and £35.8m of external funding committed for the next financial year. External funding included grants and contributions, Community Infrastructure Levy (CIL) contributions and from Section 106 agreements. The importance of an affordable capital programme was emphasised and that grant funding was ring-fenced for specific purposes.

The importance of ongoing investment in infrastructure was discussed, with the point made that underinvestment could have long-term negative impacts on the area’s attractiveness to families and businesses. It was important to attract residents to the district and encourage them to remain.

The Council’s success in securing external grants was noted, this was particularly important in the current financial climate. Officers were praised for their work in this area, although it was acknowledged by Joseph Holmes (Chief Executive) that Government funding was often targeted at areas with higher deprivation, limiting West Berkshire’s opportunities.

The Council’s capacity to continue to apply for grants was questioned. In response it was advised that while it was not financially possible to appoint dedicated officers for this purpose, officers did submit good quality bids for grant funding which achieved much success. Success in securing grants for highways and environmental projects were particularly highlighted. The potential to access grants from Homes England was raised.

The need for clearer reporting on the capital programme was raised, with a suggestion that it would be of benefit to be able to distinguish between annual, ongoing, and multi-phase projects/expenditure in future reports. The value of tracking long term investment in assets was discussed, with the view that this could inform future business cases and reveal patterns in maintenance and replacement needs.

It was noted that the Council’s accounting system could track spend on a ward by ward basis which would help to understand levels of investment across West Berkshire. 

The adequacy of capital investment in Special Educational Needs and Disabilities (SEND) provision was questioned. It was discussed that demand for SEND places was high and it was felt that implications arising from the Covid-19 epidemic had contributed to this demand. Councillor Heather Codling (Deputy Leader and Portfolio Holder for Children and Family Services) explained that the Council aimed to expand provision to further enhance inclusion and to enable pupils to attend their local school.

Councillor Cottingham added that placement decisions were made based on what was best for the individual, especially those who were vulnerable, rather than on cost. He added that investment in Education was a key priority of the Capital Strategy with expenditure focused on statutory requirements and projected need.

The importance of CIL funding was highlighted, and it was confirmed by Mr Holmes that the capital programme was based on an average of £3-4 million in CIL receipts per year. The use of CIL/Section 106 grants was restricted, but grant funding was always considered for capital works prior to the Council’s own borrowing. 

The retention of the Members’ community bids fund was welcomed, with the view that it enabled delivery of tangible ward projects and helped to foster parish partnerships. It was noted that the process for accessing these funds was being streamlined to reduce bureaucracy and ensure fairer, more agile distribution.

Questions were raised about the Playing Pitch Action Plan and the 3G pitch at Faraday Road. Shannon Coleman-Slaughter (Service Director – Finance, Property and Procurement) confirmed that feasibility funding was included for the action plan, and the 3G pitch was agreed for the in-year capital programme and would roll into next year’s budget.

The funding and business case for the solar farm project were discussed. It was confirmed that alternative funding sources, such as the National Wealth Fund, were being explored. The primary aim of the project was carbon reduction, not yield, and a robust business case was being developed to satisfy scrutiny and government requirements.

The Chestnut Walk project was discussed, with clarification provided by Shannon Coleman-Slaughter that only the capital element (Section 106) was shown in the capital programme, while other funding streams were documented elsewhere.

Ongoing running costs for derelict buildings, such as business rates, security, and insurance, were explained. Clare Lawrence (Executive Director for Place) advised that the Chestnut Walk site was recently broken into.

The Chestnut Walk project was Council-led following the closure of the joint venture with Sovereign.

The procurement of a new social care case management system to replace Care Director was discussed. It was confirmed that the new system, Mosaic, was due to go live in mid-April and would improve efficiency and functionality.

The shop mobility scheme in Newbury Town Centre was discussed, with it being confirmed that there was a low-cost annual membership and affordable hire fees for users.

RESOLVED that the report be noted. It would next be considered by Executive on 12 February 2026, followed by Budget Council on 26 February 2026.