Issue - meetings

The Executive Member for Financial Sustainability presented the Capital Strategy, Minimum Revenue Provision Policy and Treasury Strategy 2025/26. He referred to Appendix A and the £10.55million capital spend for 2025/26, the majority of which was for the purchase of new bins and refuse vehicles under the new waste contract which would be financed by new debt and small grants. He noted that 2025/26 represented the peak of council borrowing and the council should see borrowing reduced moving forward.

The Executive Member for Financial Sustainability referred to appendix B and the Minimum Revenue Provision Statement which was required to be approved. He said that the Treasury Management Strategy at Appendix C was a legal obligation under the Local Government Act 2003.

Councillor Brittain proposed that the recommendation in the report be supported. Councillor Copley seconded the proposal.

The motion to support the recommendation having been proposed and seconded was put to the meeting and upon a vote being taken, was declared CARRIED.

RESOLVED – that the Capital Strategy, Minimum Revenue Provision Policy and the Treasury Management Strategy 2025/26 including the Prudential Indicators contained within the reports be approved.

The Executive Member for Financial Sustainability presented the Capital Strategy, Minimum Revenue Provision Policy and Treasury Strategy 2025/26. He said that 2025/26 was the peak of council borrowing and should reduce as a result of receipts and limited capital expenditure. He referred to the Minimum Revenue Provision Statement at Appendix B and said there were new regulations being implemented from 1 April 2025 but council advisors had said they did not expect changes to have a significant effect on the council.

Councillor Brittain proposed that the recommendations in the report be supported. Councillor Wilson seconded the proposal.

The motion to support the recommendations having been proposed and seconded was put to the meeting and upon a vote being taken, was declared CARRIED.

RESOLVED -To recommend to Council to approve the Capital Strategy, Minimum Revenue Provision Statement and the Treasury Management Strategy 2025/26 including the Prudential Indicators contained within the reports.

The Executive Member for Financial Sustainability introduced the report which presented the Executive’s recommended Capital Strategy, the Minimum Revenue Provision Statement, and the Treasury Management Statement 2025/26, for approval by Full Council.

The Chair thanked the Executive Member for Financial Sustainability for his report.

Councillor Buckmaster asked if funds which were currently in property investments would be used to repay other council debts at the end of their terms.

The Executive Member for Financial Sustainability said that this was correct, with any receipts used to pay debts or fund capital requirements, such as waste vehicles. He said that the return dates for the funds were currently unknown, adding that the council had two property funds, both of which were being wound down.

The Interim Head of Strategic Finance said that exploratory work was being undertaken regarding the option for the council’s second fund to be absorbed by a larger fund. He said that if the fund was merged it was envisaged that most of the council’s initial investment could be returned by June/July, otherwise the winding down process could take two to three years. He confirmed that this would impact next year’s budget and in year cash flow/ cash flow requirement.

Mr Sharman asked if the asset disposal programme for 2026/27 was realistic and sought clarification of the effect of a fall in interest rates would have on the council’s budget.

The Executive Member for Financial Sustainability said that the asset disposal programme for 2026/27 was realistic, with the majority relating to Old River Lane. He said and that the council’s borrowing was more dependent on the gilt rate, which had remained steadily high and was not directly linked to the bank interest rate. He said that therefore a reduction in the gilt rate would help with the council’s (predominately short-term) borrowing costs. 

Councillor Nicholls asked for the implications of devolution on the council’s debt liability and long-term commitments.

The Interim Head of Strategic Finance said that when new bodies were merged or formed their assets and liabilities transferred with them, he cited Cornwall and Cumberland as such examples.

Councillor Deering referred to table 5 at paragraph 3.7.2 of the report. He noted the figures within the table and sought clarification that the figure of £800,000 in the third line did relate to asset disposals. He said that the report made vivid that there had been virtually no progress in relation to asset sales.

The Interim Head of Strategic Finance said that technically this figure may be an asset disposal, as it related to capital funding from a loan to Millstream. He said that the table itself concerned ‘capital receipts receivable’.

The Interim Head of Strategic Finance agreed that there had been virtually no asset sales completed within the year. He said that sales had been reforecast and that the council was confident that the programme for 2026/27 could be achieved. He said that the figure of 2.4 million shown table 5 would be in capital receipts, as loans and  ...  view the full minutes text for item 313