Issue - meetings

Capital Strategy

 

 

Meeting: 02/02/2026 - Cabinet (Item 7)

7 Capital Strategy 2026 - 2027 pdf icon PDF 409 KB

Capital Strategy Report 2026-27

Executive Summary

This report sets out the Council’s Capital Strategy for the year 2026/27. It sets out the Council’s approach to the deployment of capital resources in meeting the Council’s overall aims and objectives while providing the strategic framework for the effective management and monitoring of the capital programme.

Options considered

 

This report must be prepared to ensure the Council complies with the CIPFA Treasury Management and Prudential Codes.

Consultation(s)

Section 151 Officer

Recommendations

 

To recommend to Full Council that the Capital Strategy 2026/27 is approved.

 

Reasons for recommendations

 

The Council is required to approve a Capital Strategy to demonstrate compliance with the Codes and establishes the strategic framework for the management of the capital programme.

 

Background papers

 

CIPFA Prudential Code (Treasury Management in the Public Services: Code of Practice 2021 Edition).

CIPFA Prudential Code (Capital Finance in Local Authorities: Code of Practice 2021 Edition).

 

Wards affected

All

Cabinet member(s)

Cllr. Lucy Shires

Contact Officer

James Moore/Claire Waplington

Technical Accountant/Chief Technical Accountant

 

 

 

Additional documents:

Decision:

Decision

RESOLVED

 

To recommend to Full Council that the Capital Strategy 2026/27 is approved.

 

Reason for the decision:

 

The Council is required to approve a Capital Strategy to demonstrate compliance with the Codes and establishes the strategic framework for the management of the capital programme.

 

 

Minutes:

The Chair invited the Portfolio Holder for Finance, Estates and Property Services, Cllr Shires, to introduce this item. She began by saying that the Capital Strategy 2026/2027 was an integral part of the wider budget setting process and fed into the other reports that were being presented at the meeting.

 

Cllr Shires said that this was an annual report and there was nothing that had significantly changed overall since last year and she thanked officers for their support in producing the report.

 

Cllr C Cushing sought more information on the reference to ‘capital contributions’ in the Financing of Capital Expenditure table on page 20 of the report. The Assistant Director for Finance explained that this section included items such as s106 contributions and other various ‘pots of money’.

 

Cllr V Holliday referred to page 21 and the proportion of financing to net revenue streams, which she noted was increasing. She sought clarification on the likely reasons for this. Cllr Shires replied that it depended on how affordability was viewed. Regarding the undertaking of capital works, she said that these were affordable and queried whether Cllr Holliday’s concerns related to the possible increase in payments for borrowing, adding that the MRP was a calculation what would come out of revenue in terms of repayment. Therefore, if the Council borrowed more, then the payment would increase. The Director for Resources added that it was a reflection that more capital projects were no longer being funded by grants but by either internal or external borrowing. It was not real cash but equated to a reserve that could be used to fund the original loan payment. Cllr V Holliday asked if there was a benchmark with a comparable Council for this. Cllr Shires said that the MRP was referred to by every Council and would vary in each case. The Director for Resources agrees to provide a response after the meeting.

 

It was proposed by Cllr L Shires, seconded by Cllr T Adams and

 

RESOLVED

 

To recommend to Full Council that the Capital Strategy 2026/27 is approved.

 

Reason for the decision:

 

The Council is required to approve a Capital Strategy to demonstrate compliance with the Codes and establishes the strategic framework for the management of the capital programme.