Council is

Recommended       To consider the report and, if satisfied, approve the updated Capital Strategy attached at Appendix A to the report which sets the policy framework for the development, management and monitoring of capital investment, including Capital Prudential Indicators.

Council   

Agreed          to approve the updated Capital Strategy attached at Appendix A to the report which sets the policy framework for the development, management and monitoring of capital investment, including Capital Prudential Indicators.

Councillor John Williams presented this report on the annual review of the Capital Strategy.

Councillor Heather Williams expressed concern regarding short-term loans and the proposed increase of the authorised debt limit. Councillor John Williams replied that the debt limit was set by the prudential indicators and it did not mean that the Council would borrow up to this limit. It was noted that the Council’s largest debt was the £205 million imposed on the Housing Revenue Account by the Government in return for being able to keep rent and capital receipts.

Councillor John Williams proposed and Councillor Bridget Smith seconded the recommendation in the report. A vote was taken and were cast as follows:

In favour (26):

Councillors Michael Atkins, Henry Batchelor, John Batchelor, Paul Bearpark, Anna Bradnam, Ariel Cahn, Dr Martin Cahn, Libby Earle, Peter Fane, Corinne Garvie, Bill Handley, Sunita Hansraj, Sally Ann Hart, Dr Tumi Hawkins, Pippa Heylings, Dr James Hobro, Helene Leeming, Peter McDonald, Brian Milnes, Dr Lisa Redrup, Judith Rippeth, Peter Sandford, Bridget Smith, Richard Stobart, Dr Susan van de Ven, John Williams and Eileen Wilson.

Against (8):

Councillors Dr Shrobona Bhattacharya, Tom Bygott, Graham Cone, Mark Howell, Daniel Lentell, Bunty Waters, Heather Williams and Dr Richard Williams.

Abstain (0):

Council  

Agreed          to approve the updated Capital Strategy attached at Appendix A to the report which sets the policy framework for the development, management and monitoring of capital investment, including Capital Prudential Indicators.

Cabinet recommended to Full Council the updated Capital Strategy attached at Appendix A to the report which sets the policy framework for the development, management and monitoring of capital investment, including Capital Prudential Indicators.

Councillor John Williams, Lead Cabinet Member for Resources, introduced the report and moved the recommendations. In so doing, Councillor Williams advised that the strategy had undergone an annual review with some minor changes as well as updates to meet the credential codes of 2021.

The recommendations were seconded by Councillor Bill Handley.

Resolution

Cabinet recommended to Full Council the updated Capital Strategy attached at Appendix A to the report which sets the policy framework for the development, management and monitoring of capital investment, including Capital Prudential Indicators.

Options Considered

The option of not adopting the revised Capital Strategy was not considered to be appropriate. Local authorities were accountable to their communities for how they spend their money and for ensuring that this spending was prioritised and represented value for money. Local politicians and officers operated within local governance frameworks of checks and balances to ensure that decision-making is lawful, informed by objective advice, transparent and consultative. Good governance meant that proper arrangements were in place to ensure that an authority’s intended objectives were achieved and establishing a policy framework for the development, management and monitoring of all capital investment and the prioritisation of the Council’s capital resources needed to be a key commitment to ensure that authorities remained financially sustainable and responded efficiently and effectively to service needs.

Reasons for Decision

To establish and approve an updated Capital Strategy that complies with CIPFA’s revised Prudential Code for Capital Finance in Local Authorities (2021 edition) and Prudential Code Guidance Notes for Practitioners (2021 edition), CIPFA’s Treasury Management in the Public Services: Code of Practice and Cross-Sectoral Guidance Notes (2021 edition) and revised Statutory Guidance on Local Government Investments (3rd Edition) issued in February 2018.