Decision Maker: Cabinet

Outcome: Recommendations Approved

Is Key Decision?: Yes

Is Callable In?: No

Date of Decision: February 12, 2025

Purpose: This report sets out the updated Capital Programme for 2024-30 for the Council’s General Fund and the Housing Revenue Account (HRA) with a forecast of resources available over that period.   Capital Programme and Strategy for 2024-2030 following Cabinet, is to be submitted to Budget Council 26th Feb 2025.  

Content: The Executive Mayor and Cabinet RESOLVED to recommend to Full Council for approval;   2.1 The Council’s 2024-30 General Fund Capital Programme which includes planned expenditure of £1,314.3m (including capitalisation directions of £942.9m) across the six years period. This includes expenditure financed through borrowing of £985.4m over the six years, during which time the Minimum Revenue Provision (MRP) “paying down” of the capital financing requirement would be £244.9m. The MRP annual borrowing cost would increase incrementally by an average £5.7m each year over the six years. The cost of this future borrowing is factored into the Council’s Medium Term Financial Strategy.   2.2 The transformation projects set out in the table at paragraph 4.32 of this report to be included in the 2024-30 General Fund Capital Programme.   2.3 The 2024-30 Housing Revenue Account (HRA) Capital Programme which includes planned expenditure of £505.8m with borrowing of £247.2m.   2.4 The Council’s Capital Strategy, as detailed within Appendix A of this report.   2.5 Note the Council’s historic legacy borrowing and debt burden, and service pressures, are critical to the non-sustainability of the Council’s revenue budget. Dialogue with MHCLG continues, and the Council is seeking further financial and other support from Government in regard to its level of indebtedness and service pressures to ensure it can deliver sustainable local government services.