Purpose

To provide an update on the Capital Programme for 2026/28 -
2030/31

Content

 The Cabinet considered a report of the
Deputy Chief Finance Officer, which sought to update on the
Council’s Capital Programme 2026/27 –
2030-31. 
 
The Cabinet Member
Finance and Growth delivered a brief summary of the report’s
key points.
 
The Deputy Chief
Finance Officer was in attendance to present the information and
respond to questions and comments from the Cabinet
Members.
 
The Senior Officer
informed of the Council’s Capital Programme 2025/26, which
was now £114.743m as described in section 5.1 to the report
and outlined the Council’s proposed Capital Programme 2026/27
to 2030/31, as a basis for consultation and continued informing of
the risks of borrowing to finance the Capital Programme and its
impact on the longer-term financial sustainability of the Council
and Treasury Management Strategy (TMS), as discussed in section 5.3
of the report.
 
Some of the
assumed external funding included in the programme was still
subject to clarification from Government and other sources and in
some cases might involve bids for funds. It was therefore
recommended that all approvals were subject to confirmation of
funding allocations.
 
Resolved:

1.    
That the proposed changes to the Capital Programme 2025/26,
which following additions and rephasing stands at £114.743m
be noted;

2.    
That  the Capital Programme
for 2026/27 of £196.844m, and provisional programmes for
2027/28 to 2030/31, as a basis for consultation, subject to
confirmation of grant funding allocations, as detailed in Appendix
1 to the report be approved;

3.    
That it be noted that:

a.    
New bids totalling £2.887m are proposed for inclusion
in the capital programme. These additions are expected to generate
incremental revenue costs of £12k in 2026/27, rising to a
future year full year effect of £248k by 2030/31.

b.    
The use of £5m of reserves to fund shorter life schemes
has resulted in reduced revenue costs of £345k in 2026/27,
with further increased savings across future years of £800k.
This has resulted in a net revenue cost reduction in 2026/27 of
£333k, in 2027/28 of £693k, and in 2028/29 of
£596k after taking account of the new scheme
costs.

c.     
The review of the existing capital programme since the start
of the financial year has resulted in 1) a net movement of
£12m prudential borrowing to be rephased into future years
contributing to short-term savings of circa £671k in 2026/27,
and 2) a reduction of £2.5m from the programme, attributing
to a long-term saving of £164k in the years after.

4.    
That it be agreed that where new funding is confirmed
relating to schemes with a prudential borrowing implication for the
Council, this will be used to reduce the Council’s borrowing
requirement.

5.    
That the next steps of the consultation process which will
take place over the autumn be agreed.
 
Reason for
decision:
Cabinet members
are required to recommend a balanced 2026/27 Revenue Budget to Full
Council, and provisional budgets for 2027/28 to 2028/29, and the
capital programme is a key element of the budget setting process
and has a direct impact on revenue budgets. The Council is required
to set a balanced budget for 2026/27 by 11th March 2026.
 
Alternatives
considered and rejected:
The Council is
legally obliged to set a balanced budget. The budget setting
process is complex and must be undertaken in a planned way. It is
equally important that assumptions used in the preparation of the
budget are agreed, reasonable and consistently applied by all
services.
 
A number of
alternative elements of the Capital Programme were considered in
the development of the programme, the one which is presented is of
the most strategic/community value and is aligned with the
Council’s priorities and therefore forms the basis for
consultation, on the understanding that any alternatives offered
during that process will be considered.