Issue details

This report considers the Capital Strategy for 2023/24, prior to its submission to the Council for approval.

Regulations require the Council to prepare and formally approve a Capital Strategy.  The document for 2023/24 is attached as Appendix A to this report for consideration by the Executive before being submitted to Council for approval.

The Capital Strategy gives a high-level overview of how capital expenditure, capital financing, asset management and treasury management activity contribute to the provision of services along with an overview of how associated risk is managed and the implications for future financial sustainability.

The main highlights in the Capital Strategy are:

i)       The level of capital expenditure estimated for 2023/23 is £24.5 million. The current estimate is that £3.1 million of this will be met by new borrowing.

ii)      A new prudential indicator for net income from commercial investments to net revenue stream has been added.

iii)    A new section about the Daedalus Finance Strategy has been added

iv)    A high-level review of future funding requirements has identified a capital funding requirement of £229 million.

v)     The Council’s investment property portfolio has an estimated value of £68.3 million

A separate report proposing the Treasury Management Strategy and Investment Strategy for 2023/24 will be presented at the February meeting of the Executive.