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Issue - meetings

Medium Term Financial Strategy - Capital Programme

Meeting: 20/01/2021 - Policy and Resources Committee (Item 123)

123 Medium Term Financial Strategy - Capital Programme pdf icon PDF 197 KB

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The Senior Finance Manager introduced the report and stated that the Capital Strategy outlined the key principles and guidelines that the Council followed in undertaking the Capital Programme. The five-year programme totalled £129 million. It was proposed that the rate of return necessary to ensure a project’s viability be reduced from 5% to 4%, to reflect the reduced cost of borrowing arising from reduced interest rates. The Audit, Governance and Standards Committee had approved the strategy.


The maximum rate of borrowing for the capital programme had been agreed at £103 million and was likely to be sourced from the Public Works Loan Board (PWLB), however alternative options would be considered if appropriate. The schemes shown within Appendix 1 to the report were outlined, with the £18 million in additional funding for the Private Rented Sector (PRS) programme noted.


In response to questions, the Director of Finance and Business Improvement confirmed that the reduced interest rates on any borrowed funding would remain fixed. It was confirmed that if a scheme was ready to commence earlier than expected, a report could be presented to the Committee to request that the funding be transferred forward.


The Director of Regeneration and Place stated that the Medway Street Car Park Scheme would be presented to the Committee once further details were available. The Granada House Scheme would be presented to the Committee at its next meeting.




1.  The capital strategy principles, as set out in paragraph 2.6 of the report, be agreed;


2.  The capital funding projection set out in Appendix 2 of the report, be agreed;


3.  The capital programme 2021/22 onwards as set out in Appendix 3 to the report, be agreed;


4.  In agreeing recommendations two and three as outlined above, a prudential borrowing limit of £103.428 million over the period of the programme shall be recommended to Council as part of the Treasury Management Strategy 2021/22, be noted; and


5.  In assessing the viability of capital schemes, the hurdle rate of return be reduced from 5% to 4% as set out in paragraph 2.13 of the report.


Note: Councillor Brice did not vote on this item.