Agenda item

The Executive Member for Finance, Governance and Organisation and Deputy Leader.

Councillor Lewanski, the Deputy Leader and Executive Member for Finance, Governance and Organisation explained that the report presented the latest version of the Council’s Capital Investment Strategy.

None of the information in this report was new, but it did bring all aspects together to demonstrate that there was a plan to ensure that capital spending decisions took account of the authority’s stewardship, value for money, prudence, sustainability, and affordability responsibilities.

This was particularly important in the current financial climate, especially in light of those authorities that were now finding themselves in financial difficulties due in part to not having sufficient control over their capital spending and borrowing commitments.

The report also included information about the significant assets that were in Council ownership, how they were used and how they were performing, as well as information about the new capital assets that the Council was investing in and how they were being funded.

These activities were supported by the work of the Partner, Shareholder and Trustee Sub-Committee and officer boards.

The next step would be to continue the work that was now in progress to confirm future capital investment plans as part of the service and financial planning process.

Members of Overview and Scrutiny Committee made no formal observations to the Executive on the Capital Investment Strategy, although there were several comments and questions, and these were published in an Addendum to the agenda.

The Chair of the Overview and Scrutiny Committee made the following comments:

·         The report on Commercial Property Performance in 2022/23 that was submitted to the Partner, Shareholder and Trustee Executive Sub-Committee held prior to this meeting had helped to answer some of the detailed questions on property investment returns that the Overview and Scrutiny Committee had raised regarding Tables 1,2 and 3 in this report.

·         The Committee had considered the current position regarding plans for Beech House and again this had been discussed at the Partner, Shareholder and Trustee Executive Sub-Committee.

·         The Capital Programme did not yet include any significant investment in electric vehicles despite options being considered. There had also been discussion around the requirement for investment in refurbishing buildings to improve energy efficiency to support delivery of the approved Environment Sustainability Strategy, however allocations had not been made in the Capital Programme.

In response to the comments, it was explained that various options were being considered relating to vehicle replacement, including electric and hydrogen power. The Chair of the Overview and Scrutiny Committee was thanked for the Committee’s comments.

A visiting member stated that Surrey County Council’s (SCC) capital programme for refurbishing buildings to improve energy efficiency was funded through a combination of grants, loans and invest to save projects as well as using some of their own resources, and that there was a Green Finance Strategy had been adopted for this. It was questioned whether the Council could develop further the Capital Strategy for these environmental elements as it represented a gap in the Capital Investment Strategy currently.

In response the Leader explained that SCC may be further advanced than this Council currently. In respect of vehicles the Council was not going to scrap its current fleet as this had an environmental impact too; a replacement programme needed to be developed to ensure the Council was working towards the most suitable power solution.

The following responses were given to questions from members:

·         The Council was not currently considering selling any assets.

·         All Council vehicles were maintained and repaired by the Council itself, therefore training staff to maintain electric or hydrogen vehicles would be necessary. Charging points would have to be installed at the Depot. Domestic use of vehicles was not comparable to commercial use.

·         The Council was exploring funding options for investment in environmental enhancements for Council-owned buildings, however the sum has not yet been confirmed.

RESOLVED – that the Executive:

(i)           Recommend to Council that the Capital Investment Strategy be adopted as the framework for the Capital Programme elements of service and financial planning for 2024/25 onwards.