Agenda item

To consider and recommended to Council the new Capital Strategy and the proposed Capital Programme for the period 2016/17 to 2020/21. 

Report of the Interim Strategic Director of Finance and Corporate Services

Cabinet Member – Councillor Alam

Commissioners:  Myers/Ney (in advisory role)

Recommended:-  That Council be asked to approve the new Capital Strategy, as presented in Appendix A and Capital Programme, as presented in Appendix B (for £279.095m in the period 2016/17 to 2020/21), which would require prudential borrowing of £53.602m to fund non-HRA schemes over the five year period, for which provision had been made in the revenue budget for the associated financing costs.

Consideration was given to a report presented by Councillor Alam, Cabinet Member for Corporate Services and Budgeting, which detailed the Council’s new Capital Strategy and the proposed Capital Programme for the period 2016/17 to 2020/21 and to confirm that there were adequate levels of resources available to finance the Capital Programme. 

Cabinet were, therefore, asked to approve the Capital Strategy and the Capital Programme before formal approval by full Council at the meeting on 2nd March, 2016.   

The Capital Strategy and proposed Capital Programme 2016/17 to 2020/21 set out the Council’s future capital investment plans, which would ensure that investment decisions were clearly aligned with the Council’s strategic priorities and vision for Rotherham. 

The Strategy set out the seven Golden Rules for determining which projects would be approved for inclusion in the Capital Programme.  These rules prescribed the governance and approval procedures that must be followed and the framework under which the Capital Programme would operate.

The report also illustrated the total Capital Programme, its arrangements, and the delivery of the key strategic projects, which included various schemes including £17 million for the town centre, £73 million for improving highways and infrastructure, £151 million for housing and neighbourhood investment and £43 million on highway schemes through the Sheffield City Region.

Councillor Read, Leader of the Council, recommended this breakthrough process which ensured the Strategy was aligned to political priorities and the vision and that what was recommended for delivery was delivered.  He also illustrated the inclusion of £13 million for invest to save schemes, £9 million of buildings critical condition works, £10 million on ICT critical condition works, £10 million additional highway resurfacing works and the purchase of 150 additional homes through the HRA.

Stuart Booth, Interim Strategic Director of Finance and Corporate Services, reiterated the breakthrough with the new Capital Strategy, which clearly articulated how it was affordable for the Borough and aligned  to the priorities.  The Council was working with the Sheffield City Region to drive forward growth and investment in the region.

The detailed Capital Strategy and Capital Programme stemmed from the priorities and careful consideration had been given to the maximum use of capital receipts and prudential borrowing to support the funding of the Programme.

Governance of the Programme would ensure best practice and HM Treasury guidance was followed.

Commissioner Ney informally advised the proposed Capital Programme 2016/17 to 2020/21 represented a significant investment predominantly in  construction activity and suggested the Council should explore the scope to utilise its procurement process within the construction sector and its partnerships with developers to deliver additional benefit through apprenticeships, skills and pathways to employment for Rotherham residents and young people in the sector.

Recommended:-  That Council be asked to approve the new Capital Strategy, as presented in Appendix A and Capital Programme, as presented in Appendix B (for £279.095m in the period 2016/17 to 2020/21), which would require prudential borrowing of £53.602m to fund non-HRA schemes over the five year period, for which provision had been made in the revenue budget for the associated financing costs.