Nigel Kennedy, Head of Financial Services, will attend the meeting to present the Cabinet report on the Capital Strategy 2020/21 – 2024/25. The Committee is asked to consider the report and make any recommendations accordingly.

The documentation for this item will follow as a late paper pending full sign off.

In introducing the report the Head of Financial Services explained that there was a new obligation in the latest CiPFA guidance for councils to adopt a Capital Strategy annually but that this was already the Council’s established practice. He also provided an overview of the Council’s relatively new approach to capital project management; the Capital Gateway process. Projects will be presented to members for inclusion in the draft capital programme (for final approval by Council each February) only once they have been approved by an officer board at the outline business case stage.

The Management Accountancy Manager explained the arrangements for monitoring the delivery of the capital programme. The Panel heard that members can expect to see greater detail about the delivery of the capital programme, as well as information about the use of money budgeted for feasibility studies, in the quarterly integrated performance reports that are presented to Finance Panel and Cabinet.

The Panel asked questions about the status of loans to the Council’s companies and the structure and progress of the OxWED joint venture. The Panel heard that the Council was receiving a return of 6% on its loans to OxWED which was still at an embryonic stage in the sense that it was yet to secure a development agreement or declare a profit.

The Panel requested an update on the rationalisation project for the two depots occupied by Oxford Direct Services (ODS), for which a £13m budget had been agreed in the Council’s capital programme. The Panel heard that the Council has engaged consultants and that a report was expected to progress to Cabinet in the summer. The Panel noted that any future decision on the depot rationalisation project should be informed by appropriate consultation with the ODS workforce, elected members and residents, not least because such consultation may be a requirement under the Duty of Best Value.

The Panel welcomed the inclusion in the Capital Strategy of the Council’s recently agreed strategy for commercial property investments. The Panel considered whether the wording in that section of the Strategy is potentially too restrictive in regards to energy efficiency standards (Appendix A 13.6.6). It states that “the Council will not purchase properties that are not compliant with the relevant energy efficiency standard”. The Panel felt that this wording may be too definitive as there may be opportunities to redevelop or retrofit such properties, with good returns from energy-efficient investments, recognising that energy efficiency is one of a number of factors that would need to be balanced in any purchasing decision.

The Panel noted the report and agreed:

·         That any future Cabinet decision on depot rationalisation should be subject to pre-decision scrutiny and added to the Scrutiny Work Plan.

·         To submit the following recommendations to Cabinet:

1.    That the Council consults with the ODS workforce, elected members and the public on any future proposal for depot rationalisation.

2.    That clarity is provided in the Capital Strategy that when properties are assessed for potential purchase, consideration will be given to any opportunities to redevelop or retrofit properties that are not compliant with the relevant energy efficiency standard.

The Panel will continue to consider the Capital Strategy annually and the quarterly integrated performance reports before they are presented to Cabinet. The delivery of the capital programme and the use of the feasibility budget will naturally form part of those deliberations.