Meeting documents

Councillor Mordue

Cabinet Member for Resources, Governance and Compliance

To consider the attached report.

Contact Officer:  Andy Barton (01296) 585430

(a)          Decision(s)

That the Capital Programme as presented to Cabinet be approved for the purposes of scrutiny.

(b)          Reason(s) for Decision(s)

The Council reviews the capital resource position at regular intervals to assess the need for any adjustment having regard to the timing and amount of capital receipts available.

(c)        Alternative Options Considered

None.

(d)       Relevant Scrutiny Committee

Finance and Services.  The Capital Programme will be considered by the Committee at its meeting in January, 2018, and call-in is therefore unnecessary.

(e)        Conflicts of Interest / Dispensation(s)

None.

The Council maintained an integrated strategic Capital Programme divided into three elements:-

·                    Major projects - These being the largest and highest profile.

·                    Housing Schemes - These being the housing enabling and housing grant based schemes.

·                    Other Projects - These being all other schemes included within the Capital Programme.

The Programme was reviewed annually and Cabinet considered a report on the current position with capital resources.  The report could be read in full on the Council’s web site.

The following table set out the available resources as at the beginning of 2017/18 and the projected resources during 2017/18 and 2018/19 before any expenditure had been taken into account:-

The Council had for some time been in a position where the generation of significant capital receipts was no longer likely as the asset base now comprised largely of small land holdings and operational property.  Large capital resources were now dependant upon external funding sources and in particular, borrowing.  The Capital resource position was the subject of an on-going review within the context of future demands and needs.  A copy of the Capital Programme had been appended to the Cabinet report.  The report contained a summary of the position in relation to various capital projects and other capital expenditure items.

Particular reference was made to the housing enabling element of the Programme.  The Council had been successful in its delivery of affordable housing, the capital commitment to which was tied to the VAHT housing stock transfer.  With the ending of the VAT shelter, beyond residual right to buy capital receipts and nominal sums from New Homes Bonus, the Council had no means to fund new schemes other than by way of borrowing.  However, as borrowing for this purpose provided no return by which to recover the borrowing costs, funding an affordable housing programme though this means was not sustainable.

Housing Associations had been obliged to review their business plans in the light of a change in the level of rents they could charge and so demand for potential new schemes had been delayed.  The Government had made it clear that housing provision was a priority and the recent Budget  hadincluded a number of commitments to provide funding.  However, the details had not yet been made available.  The Council would continue to work with Housing Associations to deliver as many affordable homes as possible, but it had become clear that there was a need for a fundamental review of this funding element.  Whilst this review was being undertaken, the Capital Programme made provision for all receipts from right to buy and the affordable housing element of New Homes Bonus to be ring fenced for affordable housing investment.

In relation to other projects, the most notable items were provision for the transfer of money to Coldharbour Farm Parish Council for maintenance of the Riverine Corridor, and the purchase of the new refuse fleet.

RESOLVED –

That the updated Capital Programme be approved for the purposes of scrutiny.