The Head of Financial Services submitted a report which presented the Capital Strategy 2016-17 for approval.

The Executive Board Member, Finance, Asset Management and Public Health presented the report and drew attention to the changes incorporated within the strategy:

• The explanation of what constitutes capital investment has been amended to include loans and grants to other organisations for capital purposes and the payment to the Government for the sale of High Value Council Housing
• Membership of the Capital Asset Management and Capital Board has been amended to reflect changes in organisational structure 
• New freedoms around the use of capital receipts have been incorporated 
• Given the financial pressures on the General Fund there is limited use of prudential borrowing to finance the General Fund Capital Programme 
• The prudential borrowing that is planned is for specific projects which adhere to prudent financial criteria and hence do not result in increased ongoing revenue financial pressures
• The announcement of changes to the Housing Revenue Account, including the sale of High Value Council Housing, means that borrowing will be taken out to fund capital works on the HRA

The Chair of the Scrutiny Committee asked the Board to reconsider its rejection of the Scrutiny Finance Panel recommendation that an evaluation should be undertaken of how the Council could make best use of its grant funding for infrastructure at Oxpens.  The Board noted that development was expected to be completed significantly before the 2027 deadline and that in fact contracts had to be let within five years.  Alternative investment options were considered to be too high risk in the medium term but it might be possible to review the approach in about three to five years.

The Chair said that the Board and Scrutiny Committee involvement would be a key element in the on-going Oxpens development.   

The City Executive Board resolved to:

1.         approve the Capital Strategy 2016-17 attached at Appendix A.