Issue - meetings

To recommend to Council that the Capital Strategy 2020 Onwards, as shown in Appendix A to the report, be approved.

The Executive considered a report presenting the Council’s second capital strategy since revisions to the Government guidance on Investment and Minimum Revenue Provision in February 2018. 

Councillor Williamson, presenting the report, said the guidance had been strengthened to combat the actions of some authorities which had taken disproportionate risks.  By contrast, this council, via Millstream and the Financial Sustainability Committee, took an approach which was prudent and proportionate.  The focus was on statutory duties, and the investments were a means to an end.  The capital strategy had been debated at the meeting of the Performance, Audit and Governance Oversight Committee on 14 January 2020, and no amendments had been proposed. 

Councillor Haysey welcomed the fact that this report was now brought to Council.  

Councillor Williamson proposed and Councillor Haysey seconded, a motion to support the recommendations in the report.  The motion being put to the meeting, and a vote taken, it was declared CARRIED. 

RECOMMENDED - that the Capital Strategy 2020 Onwards, as shown in Appendix A to the report, be approved.

The Interim Head of Strategic Finance and Property and Section 151 Officer presented a summary of the report and noted that the Capital Strategy had not been developed in isolation. There was a clear relationship between the Capital Strategy and other key corporate strategies and plans. Capital schemes referred to in the plan were both prudent and proportionate and the relationship between each scheme and the relevant objective(s) in the Corporate Plan were detailed in the plan.

The Chairman referred to the Core Influences Action Plan and asked why the Leisure Facilities Strategy was mentioned upfront. The Interim Head of Strategic Finance and Property and Section 151 Officer said that it merely reflected the value of the leisure centre projects.

In response to the Chairman if sustainability was reflected in the figures shown for capital projects, specifically the Old River Lane project, the Interim Head of Strategic Finance and Property and Section 151 Officer said that while sustainability was very topical, some projects would not meet the high sustainability requirements and some of the figures shown were outdated. The plan highlighted how the processes would be taken forward and in the case of Old River Lane, there were four options further down the line when the costing would be reviewed. The correct balance between commercial return and sustainability had to be found.

Councillor L Corpe said that if sustainability was built into projects at an early stage, they became cheaper and if adopted as a matter of principle, it influenced entire projects.

The Interim Head of Strategic Finance and Property and Section 151 Officer drew the committee’s attention to the fact that the Government’s announcement on the provisional settlement for local government for 2019/20 included a statement on the potential for government intervention, which meant that the Government had the power to intervene to limit borrowing. Where the Capital Strategy had to be updated, it would be shared with Members.

The Scrutiny Officer commented that in terms of scrutiny, it was important that Members relay to their residents changes which would involve and impact on them.

Councillor A Curtis moved and Councillor T Stowe seconded, a motion that the Committee endorsed that the Executive considers the recommendations in the report for recommendation to Council.

After being put to the meeting and a vote taken, the motion was declared CARRIED.

RESOLVED - to endorse that the Executive considers the following for recommendation to Council:  the Capital Strategy 2020 onwards as shown in Appendix ‘A’.