Councillor Williamson, the Deputy Leader and Executive Member for Financial Sustainability, submitted the Capital Strategy and Minimum Revenue Provision Policy report. He said that the council was required to produce the report following strengthening of guidance from Ministry for Housing, Communities and Local Government (MHCLG) and the Chartered Institute of Public Finance and Accountancy (CIPFA). He said that the Capital Strategy was helpful as a high level document and it pulled together and considered a range of both internal and external factors and how these inter-relate with policy and decision-making in respect of capital investment.
Councillor Crystall commented on Priority 3 ‘encouraging economic growth’ in the Corporate Strategic Plan on page 722. He was delighted to see a focus on a green agenda for investment purchases. He said he appreciated this was due to a shift in government policy but he thought this change in course was welcome and overdue. He said he fully supported it and highlighted it as a good example of where things are moving in the right direction.
Councillor Wilson referred to page 732 and said it implied that the council did not have a strategy at the moment and again questioned why the council had embarked on four capital projects at once without a long term capital strategy.
Councillor Williamson explained that the requirement to produce this document was only introduced in the last few years.
Councillor Williamson proposed and Councillor Kemp seconded, a motion that the proposals be supported. A motion to support the recommendation having been proposed and seconded, was put to the meeting and a vote taken. The motion was declared CARRIED.
RESOLVED – that the Capital Strategy and Minimum Revenue Provision Policy 2021/22 onwards be approved.
The Executive Member for Financial Sustainability submitted a report on the Council’s Capital Strategy and Minimum Revenue Provision (MRP) policy for 2021/22 onwards.
The Executive Member explained that the need for the council to produce an annual capital strategy was introduced by strengthening of the guidance from the Ministry of Housing, Communities and Local Government (MHCLG) and Chartered Institute of Public Finance and Accountancy (CIPFA). The Capital Strategy is useful as a high level document for members and stakeholders as it pulls together and considers a range of both internal and external factors and how these inter-relate with policy and decision-making in respect of capital investment. It helps demonstrate a golden thread linking the council’s activities to make sure they are coordinated and consistent. The strategy was considered by the Audit and Governance Committee but no amendments suggested.
There being no comments, Councillor Williamson proposed and Councillor Goodeve seconded a motion supporting the recommendations in the report. On being put to the meeting and a vote taken, the motion was declared CARRIED.
RESOLVED – To recommend to Council:
(a)To approve the Capital Strategy and Minimum Revenue Provision policy 2021/22 onwards (Appendix A to this report).
The Executive Member for Financial Sustainability briefly introduced the report and explained the benefits of producing the policy each year.
The Chairman asked whether there were any material changes to the policy from the preceding year. The Head of Strategic Finance and Property said that it was now necessary to have a Minimum Revenue Provision (MRP) Policy. The effect of climate change was now included as an influence in the capital strategy.
There were no suggested amendments or comments from Members for the Executive.
RESOLVED – that the report be received.