Agenda item

Capital Programme 2023-26

Decision:

RESOLVED

KEY DECISION

That the Executive approved for recommendation to Council:

a) The General Fund Capital Programme 2023-26 and HRA Capital Programme 2023-26.

b) That Council delegate authority to the Executive Member for Finance and Transformation in consultation with the Executive Director of Finance and Performance (Section 151 Officer) to agree any necessary variations to the capital budget prior to 1^st April 2023.

That the Executive noted:

a) the Development Pool 2023-26 and that schemes within the pool will be subject to further approval prior to inclusion in the programme.

Reason for Recommendations:To ensure that the Council complies with its Constitution and legislative requirements in setting the budget for North Northamptonshire Council for 2023-24.

Alternative Options Considered - This is the start of the formal budget consultation for the Capital Programme and any comments from the consultation will be considered as part of this process.

Minutes:

The Chair invited the Executive Member for Finance and Transformation, Cllr Lloyd Bunday to introduce a report that set out the baseline Capital Programme for 2023-24 and the indicative Medium-Term Financial Plan for North Northamptonshire Council.

It was heard that the programme had been considered by the Executive on 22^nd December 2022 and became part of the wider budget proposal consulted upon in the following weeks. Details of the consultation response were provided as part of the report.

During September 2022 each directorate entered into capital programme challenge sessions, with each required to revisit capital plans and aspirations for the coming years, with the desired outcome to review each one as to its deliverability and profiling. Projects were re-profiled or deferred into the development pool until further business cases could be considered as part of a wider North Northamptonshire scheme. This exercise provided a better forecast of planned borrowing and serviceability of funding for the general fund going forward. As a result of these sessions £43.8m of underspend and slippage from previous years has been reviewed or reprofiled into the capital programme or development pool of the General Fund for 2023/24.

The report set out the key principles underpinning the current Capital Programme to ensure that the Council delivered a capital programme that was affordable and sustainable. Member’s attention was also drawn to the Treasury Management Strategy for 2023/24.

The meeting heard that the total Capital Programme amounted to £109.1m, consisting of the General Fund of £65.4m and the HRA Capital Programme totalling £43.7m across Kettering and Corby housing stock, together with significant investment of nearly £17.5m proposed for the Housing Development and New Build Programmes. There was also a Development Pool of £190.2m which included schemes awaiting formal business cases.

The Minimum Revenue Provision (MRP) that reflected the minimum amount a council must charge to the revenue budget each year to set aside a provision for repaying external borrowing was highlighted with members noting an increase in the MRP provision of £1.549m for 2023-24 to provide for this.

Members further noted that the disaggregation of capital assets, balances and debt were still to be finalised and subject to audit of the 2020-21 financial accounts for the former Northamptonshire County Council and Corby Borough Council and this may have implications for the current assumptions. The report also set out the policy of the Public Works Loan Board with regard to future funding.

Cllrs Brackenbury and Pentland spoke to welcome the ambitious projects within the development pool, noting that robust business cases were being developed to allow for external funding bids and the number of sustainable and environmental focussed projects due to come forward.

The Chair concluded the discussion by offering his thanks to the Finance Team for their efforts and support in producing the budget before members.