Agenda item

To consider the draft Capital Strategy 2014 to 2017.

The Executive Director, Resources and Support Services introduced the Capital Strategy 2014 to 2017. The first draft was ready for scrutiny comments prior to consideration by Cabinet in January and full Council in February.

The strategy had been prepared against the backdrop of continued reduction in funding and it was necessary for it to be linked closely to the Asset Management Strategy in order to identify additional capital resources through potential disposals. The Asset Management Strategy contained a list of potential disposal assets and land assets were balanced with finances. All assets, both land and property, were being profiled, and there was some concern regarding older buildings. Staffordshire County Council had given notice on its lease of buildings in Sidmouth Avenue and their long term future was being considered, in particular the potential holding costs should the buildings stand empty. The Portfolio Holders for Finance and Resources and Economic Development, Regeneration and Town Centres would provide a response detailing how the Asset Management Strategy was compiled. Assets were monitored and potential strategic acquisitions to achieve overall bigger receipts would be investigated.

The income received from the Council’s share of receipts from Aspire tenants under the Right to Buy legislation had decreased significantly. This had been a main source of funding previously, although they were beginning to increase. The Council received a fixed proportion of the sale price of a property. Members questioned what the remaining maximum potential income from the scheme was and the time limits for right to buy. The remaining potential income was estimated to be very limited and the time limits would be ascertained and circulated after the meeting. Social landlords were offering more shared ownerships schemes which impacted on Right to Buy rates.

Members requested clarification of paragraph 6.11 of the strategy relating to borrowing. They felt the wording suggested that borrowing would only be considered if capital resources were depleted, but that borrowing could allow for savings through capital investment without utilising capital funds. They felt the wording needed to be flexible as it may currently exclude such borrowing projects. The Executive Director, Resources and Support Services would check and change the wording if necessary. There was the Invest to Save Initiative (funded by the Budget Support Fund) which could be used to front load projects. The Portfolio Holder for Finance and Resources had discussed short term borrowing with the Cabinet and where a business case could be demonstrated Cabinet would consider these on a case by case basis. The Treasury Management Strategy would provide the ultimate decision regarding borrowing and a draft of this would be received at the next meeting.

RECOMMENDATIONS:         (a) The time limit for Right to Buy house purchases to be ascertained and circulated to the Committee.

(b) The Portfolio Holders for Finance and Resources and Economic Development, Regeneration and Town Centres to provide a response detailing how the Asset Management Strategy is compiled.

(c) The Executive Director, Resources and Support Services to review the wording of the Capital Strategy 2014 to 2017, with particular reference to paragraph 6.11 and amend if necessary.