Meeting documents

To consider the attached report.

Contact Officer:  Andy Barton (01296) 585430

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 with the current programme being last approved and adopted at Council in February 2017.

Cabinet had considered a report on 20 December 2017 on the capital programme for the current year, as well as for the updated programme for 2018/19 onwards.  The report provided an updated position with respect to forecast receipts and the position with regards to current and future major investment projects. It also incorporated changes made since February 2017 and reflected these in the overall resources projections.

Cabinet had approved the updated Capital Programme for the purposes of scrutiny.  Any feedback from scrutiny would be considered by Cabinet on 9 January 2018 in making final recommendations to full Council.

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 were 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 Committee report.

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 had included 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 Parish Council for maintenance of the Riverine Corridor, and for the purchase of the new refuse fleet.

During discussions Members commented that they were supportive of the use of residual Right to Buy capital receipts and nominal sums from New Homes Bonus for affordable housing, to fund new affordable housing schemes.

RESOLVED –

That the updated capital programme for the period 2018/19 to 2021/22, as set out in Appendix A of the Committee report, be endorsed.