Issue - meetings

To consider an outline strategy setting out the Council’s approach to capital investment.

RESOLVED that the Outline Capital Investment Strategy 2019/20 be approved. 

Councillor T. Schofield, Executive Member for Finance, submitted a report to outline the Council’s approach to capital investment for the next five years.

The Executive was informed that the Outline Capital Investment Strategy, set out in the report presented, formed an important part of the Council’s governance arrangements and provided a mechanism by which investment and financing plans could be prioritised. It was explained that this would ensure capital decisions took full account of stewardship, value for money, prudence, sustainability and affordability. The Executive Member for Finance highlighted that the Strategy was intended to be read in combination with the Treasury Management Strategy.

It was noted that the Outline Strategy covered:

-       How the Council’s investment plans would support delivery of corporate priorities and key strategies, including the new Corporate Plan and Housing Strategy.

-       How capital investment options would be evaluated.

-       The importance of achieving a balance between capital investment that supported service delivery and investments that delivered financial return to support the budget.

-       How the capital programme would be funded, ensuring it was affordable over the medium term.

-       The management of risks.

-       Plans to extend capital investment planning timescales from the short/medium-term to a longer period (10 years plus).         

The Executive Member for Finance explained that the approach, set out in the report presented, had been subject to review by the Treasury Management Panel, at a workshop with the Council’s treasury management advisors in February 2019, and had been reviewed by the Overview and Scrutiny Committee in March 2019. 

In response to questions, the Executive was informed that in order to develop a final strategy, priority work streams included:

-       Refreshing the Council’s 5-year Medium Term Financial Plan.

-       Evaluating the performance and risk profile of existing and planned capital investments.

-       Developing supporting governance and decision-making frameworks.

It was highlighted that the initial Outline Capital Investment Strategy would be developed over the coming months as priorities in the new Corporate Plan and Housing Strategy were confirmed. The Final Capital Investment Strategy was therefore expected to be considered by the Overview and Scrutiny Committee, Executive and Full Council in September 2019.         

RESOLVED that the Outline Capital Investment Strategy 2019/20 be approved. 

Reason for decision: To support the adoption of an Outline Capital Investment Strategy for the 2019/20 financial period.

Alternative options: To not support the contents of the strategy or to defer the report and ask Officers to provide more information and/or clarification on any specific points.

To consider the first stage of the Council’s Capital Investment Strategy, and to offer any comments for consideration by the Executive.

The Committee considered the Outline Capital Investment Strategy 2019/20, which was introduced by Councillor Schofield, Executive Member for Finance. It was identified that the strategy set out the Council’s approach to capital investment for the next five years, formed a key part of the Council’s governance arrangements, and ensured that relevant factors are taken into account. It was identified that the strategy should be read in combination with the Treasury Management Strategy.

The committee considered and discussed the report. There were a number of questions and comments relating to the following topics:

·         Strategy Development. It was identified that the Outline Capital Investment Strategy  would form part of the Council’s general approach to financial decisions and planning, and would be considered in conjunction with other strategies. It was identified that the more detailed capital investment strategy was expected to be completed in time to inform the budget setting process for 2020/21.

·         Commercial Activities. It was identified that the findings of the Council’s recent Commercial Governance review would be considered by the Executive on 18 March 2019, and that it was expected that future commercial activities and approaches would be considered by a specialist Executive Sub-Committee.

·         Marketfield Way. It was identified that the Marketfield Way development composed much of the identified place delivery component of the capital programme.

·         Ethical Investment. It was identified that the all investment decisions taken by the Council would be expected to take account of ethical requirements, potentially including environmental considerations.

·         Capital Appraisal Process. It was identified that the process for reviewing and reporting on completed projects was developing, but that performance monitoring was expected to be expanded.

The Committee thanks Councillor Schofield and the finance team for their work, and it was:

RESOLVED that the Outline Capital Investment Strategy 2019/20 be noted.