Decision Maker: Cabinet
Decision status: For Determination
Is Key decision?: Yes
Is subject to call in?: No
To consider, and if agreed, to recommend to Council the Capital Strategy for the period between 2021-2026.
The Cabinet agreed to recommend the following to full Council:
(a) The General Fund capital programme 2021/22 to 2023/24 of £147.557m and the associated Minimum Revenue Provision.
(b) The Housing Revenue Account (HRA) capital programme 2021/22 to 2023/24 of £161.743m, including £147.248m for Affordable Housing schemes.
(c) The principles underpinning the capital programme in paragraph 5.1.2 of the report and the Minimum Revenue Provision principles in Section 7.
(d) The notional funding allocations for individual schemes as highlighted in Appendix A of the report (General Fund), Appendices B and C (HRA and Affordable Housing) for the period 2020-2024.
(e) The Prudential Indicators, as set out in Section 6 of the report, and the Operational Boundary and Authorised Limit as set out in Tables 1.7 and 1.8. in order to provide increased flexibility to fund the Council’s Capital Expenditure plans.
The Cabinet noted:
(f) The estimated interest costs of borrowing £119.4m to fund the entire capital programme, assuming an interest cost of 1%, excluding the Minimum Revenue Provision, was £1.194m pa. These costs had been included within the Medium Term Financial Strategy.
(g) The Council would withdraw from its reliance on using capital receipts to fund the Minimum Revenue Provision over the lifetime of this capital programme. The revenue impact of the decision resulted in a £6.573m pressure by 2023/24. These costs had been included within the Medium Term Financial Strategy.
(h) The Capital cashflow forecast in Appendix D to the report.
Report author: Jo Knight
Publication date: 12/02/2021
Date of decision: 22/02/2021
Decided at meeting: 22/02/2021 - Cabinet