Cabinet Report |
|
Report of Head of Finance Author: Donna Ross E-mail: donna.ross@southandvale.gov.uk Wards affected: All Cabinet member responsible: Pieter-Paul Barker Tel: 01844 212438 |
|
|
Implications (further detail within the report) |
Financial |
Legal |
Climate and Ecological |
Equality and diversity |
Yes |
No |
Yes |
No |
|
Signing off officer |
Donna Ross |
Vivien Williams |
Kim Hall |
Equalities team |
1. To request cabinet to recommend council to approve the capital strategy for 2024/25 to 2033/34. The capital strategy outlines the council’s approach to capital spending, based on the council’s corporate strategy, and is linked to the council’s corporate objectives, medium-term financial strategy, and management of projects and programmes.
2. The allocation of financial resources within capital budgets needs to match the objectives agreed by council.
3. The Chartered Institute of Public Finance and Accountancy (CIPFA) Prudential Code requires local authorities to produce a capital strategy to demonstrate that capital expenditure and investment decisions are taken in line with service objectives and take account of stewardship, value for money, prudence, sustainability and affordability. Under the Code, a capital strategy is required to be agreed ahead of each financial year.
4. The capital strategy for 2023/24 to 2032/33 is attached as appendix one to this report. The strategy provides the overall policy framework for capital expenditure and investment. It does this by bringing together the requirements of the council’s strategic objectives, and the constraints of its medium-term financial plan, and within the parameters set by those it determines how capital schemes can be progressed from initial idea through to conclusion.
5. Key changes to the strategy are:
· Amendments to the Investment strategy (Section 5), including removal of the commercial investments category, in line with the latest CIPFA Prudential code and Public Works Loans Board lending requirements.
· Capital expenditure de minimis level note added to section 4.
6. The capital strategy is a key document for the council. It provides a high-level overview of how capital expenditure, capital financing and treasury management activity contribute to the provision of services. It also provides an overview of how associated risk is managed and the implications for future financial sustainability. It will increase transparency in the planning, approval and monitoring of capital expenditure.
7. The capital strategy provides a framework for the management and monitoring of the capital programme. It sets out the council’s processes for setting the financial parameters for capital expenditure in the medium term.
8. There are no significant legal implications as a result of the recommendations in this report.
9. As part of the asset management and ongoing review process for the council’s property asset portfolio, measures will be introduced to enhance building sustainability, reduce water consumption and waste and improve energy efficiency in new developments and refurbishment projects in line with the council’s adopted Climate Action Plan.
10. Council Objectives - section 7 of the report, includes Action on the Climate Emergency
11. There are no equalities implications in this report.
12. The Capital strategy sets out the council’s approach to managing project risks through the Corporate Delivery Framework.
13. This report provides details of the proposed capital strategy for 2024/25 to 2033/34 and asks cabinet to recommend the capital strategy to council. These documents provide the parameters within which capital expenditure and investment decisions will be made.
Chartered Institute of Public Finance and Accounting (CIPFA) Prudential Code for Capital Finance in Local Authorities.
Appendix one Capital Strategy 2024/25 to 2033/34