Decision Maker:

Outcome:

Is Key Decision?: No

Is Callable In?: No

Date of Decision: February 11, 2025

Purpose:

Content: Salford City Council - Record of Decision (Cabinet)   I Paul Dennett, City Mayor, in exercise of the powers contained within the City Council Constitution do hereby confirm, that along with Cabinet, I have considered the report relating to Capital Strategy and Programme 2025/26 to 2027/28 and now refer the report to Council on the 26th February for approval. I recommend that Council: Approves a capital programme of up to £99.818m for 2025/26 and the proposed sources of funding as set out in this report and at appendix 1. Notes all capital proposals be referred to the Procurement Board for approval as required by the constitution and new capital approval process, supported by business case and detailed funding arrangements, prior to final budget being allocated and contractual commitments being made. Notes capital programme schemes for 2026/27 and 2027/28 have provisionally been identified by services. However, budget allocations to schemes will be subject to approval following full business case submission as set out in the new capital approval process and within affordability limits for the overall programme. The Reasons are: Under the constitution, the full Council is responsible for approving the budget and the capital programme and this is expected to take place on 26th February 2025. The City Mayor is responsible for proposing a budget and capital programme to the Council. Options considered and rejected were: Not applicable to this report Assessment of Risk: The council’s capital programme is important in generating growth in the city. Elements funded by unsupported borrowing have a financial consequence on the revenue budget. The source of funding is: As identified in the report, that general unsupported borrowing of £27.396m will be used in support and the capital financing charges on that unsupported borrowing can be met from the revenue budget. An additional £47.550m of invest to save schemes capital financing charges will be met from adjusting the sponsoring service revenue budget. Legal Advice obtained: Catherine Parkinson – Interim City Solicitor (& Monitoring Officer) The Local Government Finance Act 1992 sets out what the Council has to base its budget calculations on and requires the Council to set a balanced budget for the following year by 11 March. Section 25 of the Local Government Act 2003 requires the Council to have regard to the advice of the Chief Finance Officer (S151 officer) as to the robustness of the estimates made for the purposes of the calculations and the adequacy of the proposed financial reserves. Although the calculation of the council tax requirement and the formulation of plans and strategies for control of the Council’s borrowing, investments, capital expenditure and for determining the Council’s minimum reserve position are executive functions, the approval of such plans and strategies is a function reserved to full Council. The process to be followed to set the budget is therefore that the City Mayor and Cabinet recommend a draft budget to Council for approval. If the majority of Council does not approve the budget it will be referred back to the City Mayor. The City Mayor will consider the comments of Council and then present a further draft budget to Council, which can only be rejected by a two thirds majority of Council. The financial position must be closely monitored, and members must satisfy themselves that sufficient mechanisms are in place to ensure the delivery of savings as well as to ensure that any new expenditure is contained within the available resources. In approving the budget, members must also have regard to the Public Sector Equality Duty in making their decision. Further information in respect of this duty is set out earlier in this report. As Monitoring Officer I have been consulted in the preparation of this report and am satisfied that Financial Advice obtained: This report has been prepared by the council’s finance team in consultation with executive directors and heads of service and contains full financial implications around the budget.  Procurement Advice obtained: The procurement team will continue to work collaboratively with stakeholders, service areas, suppliers and partner organisations to deliver value for money, service/budget efficiencies and improved outcomes, ensuring that procurement activity relating to capital expenditure, delivers both technical requirements and aligns to the capital programme HR Advice obtained: There are no workforce implications immediately arising from this report. Climate Change Advice obtained: The Revenue Budget and Capital programme are key to developing infrastructure that can be an engine for economic growth whilst helping the city achieve carbon reduction targets and helping the city adapt to the challenges of climate change. Investment continues in developing a pipeline of proposals to bring forward a reduction in the city’s carbon emissions. A key project for the coming year will be the installation of roof mounted solar panels as part of the Go Neutral Programme and the exploration of a pipeline of solar car port projects. The Zero-carbon pre-implementation budget will help in the development of future projects ranging from developing fleet infrastructure to further developing the pipeline for renewable energy generation projects. In addition, funding mechanisms for future retrofit of homes and public buildings are being explored. The following documents have been used to assist the decision process: Local government finance settlement. Working papers held in the finance division. Contact officers: Rachel Rosewell: Telephone 0161607 8643 email: rachel.rosewell@salford.gov.uk Paul Hutchings: Telephone 0161 793 2574 email: paul.hutchings@salford.gov.uk Tony Thompstone: Telephone 0161 793 2016 email:tony.thompstone@salford.gov.uk David Mills (HRA):  Telephone: 0161 793 2858 e-mail: david.mills@salford.gov.uk   The decision is not subject to call-in, in accordance with the Decision-Making Procedure Rules.   Signed:            Paul Dennett                    Dated:     17.02.25                          .                         City Mayor   For Democratic Services use only   This decision was published on  17.02.25                                            This decision will come into force with immediate effect.