Decision details

The Chief Executive informed the Committee of the new requirement in 2019 for councils to submit a Capital Strategy report alongside the budget setting papers which would be going to Full Council on 26 February 2019.

The Capital Strategy Report aimed to introduce a more strategic report to provide an overview to decision makers of the investment and borrowing risk position of the authority and the governance arrangements in place to manage those risks. This was a reaction to the increasing number of councils investing in commercial assets to generate revenue and bridge budget deficits.

It was advised that no Government guidance on contents had been produced at the time of the meeting and it was therefore up to the individual local authorities to determine. The report set out some of the things intended to be included. In summary these included; capital expenditure, treasury management, commercial activity and knowledge and skills.

As the report covered treasury management activity, it was possible to combine the Treasury Management Strategy into the Capital Strategy. This would be the decision of the council however; Officers proposed that the existing Treasury Management Strategy and the Capital Strategy remain separate.

Following queries, Members were reassured that implementation of the strategy did not seek to deter local authorities but to ensure that proper governance was in place. The Committee agreed that the intended information be included and recognised that this would be an evolving document with best practice shared amongst councils in the future.

Decision;

1.    That the report be noted.

2.    That members note where the council could meet with requirements of the guidance and to note where further work would be required.

3.    That members provide any input into what they believe should be included in the Capital Strategy report.