Decision Maker: Cabinet

Outcome: Recommendations Approved

Is Key Decision?: Yes

Is Callable In?: Yes

Date of Decision: December 16, 2025

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.