Issue - meetings

REPORT OF THE SERVICE DIRECTOR – RESOURCES

To update Cabinet on progress with delivering the capital and treasury strategy for 2024/25, as at the end of December 2024.

RESOLVED: That Cabinet:

(1)    Noted the forecast expenditure of £16.816M in 2024/25 on the capital programme, paragraph 8.3 refers.

(2)   Approved approves the adjustments to the capital programme for 2024/25 onwards, as a result of the revised timetable of schemes detailed in table 2 and 3, increasing the estimated spend in 2025/26 by £0.627M.

(3)   Noted the position of the availability of capital resources, as detailed in table 4 paragraph 8.6 and the requirement to keep the capital programme under review for affordability.

(4)   Was asked to note the position of Treasury Management activity as at the end of December 2024.

REASON FOR DECISIONS: Cabinet is required to approve adjustments to the capital programme and ensure the capital programme is fully funded. 3.2 To ensure the Council’s continued compliance with CIPFA’s code of practice on Treasury Management and the Local Government Act 2003 and that the Council manages its exposure to interest and capital risk.

Audio recording – 1 hour 46 minutes 40 seconds

The Chair invited Councillor Sean Nolan, as Chair of the Finance, Audit and Risk Committee, to present the referral on this item. Councillor Nolan advised that there had been discussions around:

·       Looking into the effect borrowing to spend on capital programmes in the future would have on the Council.

·       Looking at the future of the Council under the local government reform and what assets would go into the new organisation.

Councillor Ian Albert, as the Executive Member for Finance and IT, presented the report entitled ‘Third Quarter Investment Strategy (Capital and Treasury) Review 2024/25’ and advised that:

·       A lot of time had been spent at the budget meeting (February Council meeting) talking about the Investment Strategy.

·       How the Council would deal with capital finance requirements was detailed at Appendix F of that report.

·       It was likely that the Council would have to look to borrow over the coming months.

·       There was less slippage in this report due to the work carried out in Quarter 2 and following discussions around the capital programme in the budget meeting.

·       Changes to the carried forward of the capital programme were detailed in Table 2.

·       Changes to the forecast spend of the capital scheme were detailed in Table 3.

·       All the investments were in accordance with the Investment Strategy as set out in paragraphs 8.11 and 8.12.

In response to a question from Councillor Dave Winstanley, Councillor Ian Albert advised that any element of borrowing would reduce investment income and internal borrowing was cheaper than external borrowing.

In response to a question from Councillor Dave Winstanley, the Service Director – Resources advised that the Council was expecting to move in to a need to borrow at the end of the financial year and that all capital spend had a cost due to lost interest. Where there was a need to borrow then there were further Minimum Revenue Provision costs.  

Councillor Ian Albert proposed as and Councillor Dave Winstanley seconded and, following a vote, it was:

RESOLVED: That Cabinet:

(1)    Noted the forecast expenditure of £16.816M in 2024/25 on the capital programme, paragraph 8.3 refers.

(2)   Approved approves the adjustments to the capital programme for 2024/25 onwards, as a result of the revised timetable of schemes detailed in table 2 and 3, increasing the estimated spend in 2025/26 by £0.627M.

(3)   Noted the position of the availability of capital resources, as detailed in table 4 paragraph 8.6 and the requirement to keep the capital programme under review for affordability.

(4)   Was asked to note the position of Treasury Management activity as at the end of December 2024.

REASON FOR DECISIONS: Cabinet is required to approve adjustments to the capital programme and ensure the capital programme is fully funded. 3.2 To ensure the Council’s continued compliance with CIPFA’s code of practice on Treasury Management and the Local Government Act 2003 and that the Council manages its exposure to interest and capital risk.