Cabinet considered the head of finance’s report on a capital strategy for the period 2022/23 to 2031/32. The report requested Cabinet to recommend Council to approve the capital strategy. The strategy provided a framework to the council’s approach to capital spending, and was linked to the council’s corporate objectives, its medium-term financial strategy, and the management of its projects and programmes. The Chartered Institute of Public Finance and Accountancy required the council to adopt a capital strategy.
The main changes to the strategy included:
· maximising the use and value of council-owned property assets to support council services, or for regeneration purposes to deliver a wider social or community benefit
· providing loans to companies and other organisations to support the delivery of the council’s corporate objectives
· investing in renewable energy schemes to support delivery of the council’s climate action plan priorities
· the flexible use of capital receipts to identify revenue activity, which could be funded using capital receipts rather than revenue resources
The Cabinet member for finance reported that in all cases investment would need to be within the council’s legal powers, must be proportionate to the council’s financial standing, and should support the council’s corporate objectives. However, investment could not result in commercial gain.
Cabinet supported the strategy as it would allow the council greater investment opportunities to raise income.
RECOMMENDED to Council to:
(a) approve the capital strategy 2022/23 to 2031/32, contained in appendix one of the head of finance’s report to Cabinet on 4 February 2022; and
(b) agree the strategy for flexible use of capital receipts which is contained as annex 1 of the capital strategy.