Agenda item

*RESOLVED –

That it be recommended to Full Council that the updated General Fund Capital Programme expenditure and financing be approved, as detailed in Appendix A of the officer’s report.

REASON FOR RCOMMENDATION

To ensure the Council is able to make capital investments to support delivery of its stated vision and priorities, as set out within the Council Plan 2023 – 2027, and to evidence that such expenditure is appropriately funded.

The Head of Accountancy and Finance presented a report asking Cabinet to consider the General Fund Capital Programme for the financial year 2024/25 and to make recommendations to full Council on the financing and expenditure arrangements.

The officer’s report set out the draft General Fund Capital Programme, incorporating capital expenditure and financing arrangements for the financial years 2023/24 through 2027/28. The Capital Programme was aligned to the Capital Strategy and presented, in financial terms, the Council’s plans for investment related purchasing, building and improvement of capital assets.

It was noted that the Capital Programme was an ambitious one, evidencing investment of £12.9m in 2023/24 and plans for a further £39.4m of investment from 2024/25 through 2027/28, enabling substantial regeneration to take place in and around the Borough and allowing the Council to meet all necessary capital expenditure requirements to support delivery of its vision and priorities.

The Capital Programme for 2023/24 was approved as part of the budget setting process for that financial year, in February 2023, and an updated Capital Programme forecast (expenditure and financing) was included at Appendix A of the officer’s report.  The updated programme included schemes that had already been approved by Cabinet.

The main sources of capital finance and how they were being used to fund the current Capital Programme were summarised as:

·        Borrowing – The current Capital Programme included borrowing that the Council had previously approved of £8.1m

·        Grants and contributions - Grant funding of £38.7m was a significant element of how the General Fund Capital Programme was currently resourced and included:

o   2023/24 - £8.5m in total including £4.7m Levelling Up Fund grant, £1.4m Staveley Town Deal grant and £1.7m Better Care Fund grant

o   2024/25 - £23.9m in total including £13.0m Levelling Up Fund grant, £6.8m Staveley Town Deal grant and £2.2m Better Care Fund grant

o   2025/26 - £3.3m in total including £2.1m Better Care Fund grant (for DFGs)

o   2026/27 - £2.1m of Better Care Fund grant (for DFGs).

o 2027/28 - £0.8m of Better Care Fund grant (for DFGs).

·        Reserves - these were contributions from earmarked reserves towards vehicle and plant replacements and match funding contributions towards other grant funded schemes.

Capital Receipts were only included once potential land and property assets had been identified for disposal and the assets concerned were being actively marketed.  The following Capital Receipts were identified in Appendix A:

·        2023/24 - this mainly comprised the receipt achieved in respect of council land sold at Linacre Road. Total forecast receipts for 2023/24 were £1.8m

·        2024/25 – receipts of £3.8m had been assumed

·        2025/26 – receipts of £1.5m had been assumed

·        No capital receipts had yet been identified for 2026/27 or 2027/28

All capital expenditure which was not financed through grants, capital receipts or reserves would need to be financed over time by making a Minimum Revenue Provision (MRP). A MRP is a revenue cost to the General Fund Revenue Budget and the revenue implications of any additional MRP contributions would be considered before schemes were included in the Capital Programme.

*RESOLVED –

That it be recommended to Full Council that the updated General Fund Capital Programme expenditure and financing be approved, as detailed in Appendix A of the officer’s report.

REASON FOR RCOMMENDATION

To ensure the Council is able to make capital investments to support delivery of its stated vision and priorities, as set out within the Council Plan 2023 – 2027, and to evidence that such expenditure is appropriately funded.