capital programme update and strategy report for … pr… · finance and service improvement...

CAPITAL PROGRAMME UPDATE AND STRATEGY REPORT FOR 2019/20 to 2023/24

Sue Cuerden, Executive Director of Finance and Resources (Section 151 Officer)

Report to Council

Ward(s): All

Key Decision: No

Appendix 1: Updated Capital Programme 2019/20 to 2023/24

Appendix 2: Variations To Current Approved Capital Programme

Appendix 3: Current Capital Programme Budget Transfers, Rephasing And Slippage

Appendix 4: Capital Programme Strategy

Papers relied on:

Cabinet Report February 2020 MTFS and Budget Update 2020/21 to 2023/24

Recommendations to Council:

It is recommended that Council:

1. Agrees the addition of £11.02M to the capital programme and the removal of capital scheme provisions and scheme savings of £57.57M, which gives rise to a net decrease of £46.55M to the overall capital programme as detailed in sections 4 to 5 and Appendix 2.

2. Approves the revised capital programme, which totals £88.45M (as detailed in paragraphs 2 to 9 and Appendix 1) and the associated use of resources.

3. Approves expenditure being incurred on capital schemes in accordance with the revised capital programme and Financial Procedures.

4. Notes the proposed budget transfers under delegated powers between schemes as set out in section 6 and detailed in Appendix 3.

5. Approves the slippage and rephasing as set out in section 7 and as detailed in Appendix 3.

6. Notes that the capital programme remains fully funded up to 2023/24 based on the latest forecast of available resources.

7. Approves the Capital Programme Strategy detailed in Appendix 4 which includes the establishment of a Capital Programme Board as detailed in section 10.

Background, corporate objectives and priorities

This report provides an update on the capital programme and Capital Programme Strategy for 2019/20 to 2023/24 for Council approval.

This report accords with the Council’s Policy and Budget Framework in that it sets out the Council’s capital expenditure plans which together with the revenue budget plans provide the resources necessary to deliver its objectives and support the Council Plan priorities.

Glossary of terms

Term Definition

LIF Local Infrastructure Fund

AMP Asset Management Plan Works

DFG Disabled Facilities Grant

S106 Section 106 Developer Contributions

CIL Community Infrastructure Levy

NHB New Homes Bonus

MHCLG Ministry of Housing, Communities and Local Government

EIA’s Equality Impact Assessments

CIPFA Chartered Institute of Public Finance and Accountancy

MTFS Medium Term Financial Strategy

CPB Capital Programme Board

PMO Project Management Office

1 Executive Summary

1.1 The Capital Programme Strategy provides an important link between the ambitions set out in the Council’s longer term vision and Council Plan and the important investment in infrastructure that will help turn that vision into a reality.

1.2 The strategy looks at how the Council will finance, allocate and manage capital investment into services that are vital to supporting the development of a successful and vibrant place.

1.3 The economic climate is challenging. However, the Council is committed to investing now for the longer term. Financing that commitment is made possible by the Council’s unique finances and the Council’s track record of strong financial resilience and management.

1.4 Through this strategy the Council will aim to make every capital investment count by co-ordinating and prioritising all available funding to achieve the Council’s goals.

1.5 The updated capital programme for 2019/20 to 2023/24 is £88.45M and includes new portfolio priority additions to the programme of £11.02M which are fully funded from available resources. In accordance with Financial Procedures, Council is recommended to approve expenditure being incurred on schemes as set out in this programme.

1.6 The Capital Programme Strategy has been updated in line with the revised capital programme and is detailed in Appendix 4. In order to oversee and co-ordinate the preparation, review and implementation of this strategy, it is proposed that a Capital Programme Board be established, chaired by the Cabinet Member for Finance and Service Improvement.

1.7 It is proposed that all unallocated capital programme provisions and scheme savings are removed from the updated capital programme, which has resulted in a reduction of £57.57M. Schemes will be added to the programme as they are developed as part of the annual budget setting process or in year following recommendation by the Capital Programme Board and in line with Financial Regulations.

1.8 Current scheme rephasing and slippage has been identified which has resulted in net slippage of £2.19M from 2019/20 to future years.

1.9 Proposed budget transfers between capital schemes under delegated powers are set out in section 6 and detailed in Appendix 3.

1.10 The updated capital programme is fully funded up to 2023/24 based on the latest forecasts of available resources.

2 The Updated Capital Programme 2020/21 to 2023/34

2.1 The Council’s rolling four year capital programme is used to support the Council’s Capital Programme Strategy aims and delivery of Council Plan objectives. The Capital Programme Strategy attached as Appendix 4 provides further details of how the proposed capital spend supports the objectives and priorities of the Council.

2.2 Cabinet, supported by the Strategic Leadership Team and officers, have put forward new capital proposals to achieve Council Plan objectives. The updated capital programme attached as Appendix 1 includes new portfolio priority additions totalling £11.02M fully funded from capital reserves, capital receipts and capital grants and contributions. This increase to the programme is offset by the removal of £57.57M in respect of unallocated Capital Programme Provisions and scheme savings. All provisions have been reviewed and the associated funding will be returned to unallocated capital resources.

2.3 Cabinet, the Strategic Leadership Team and officers have also reviewed the current capital programme during the budget process including an updated assessment of deliverability, which has produced a rephased programme. This includes rephasing of £2.19M from 2019/20 into later years which mainly relates to the Manydown project, play areas and Local Infrastructure Fund schemes. Details of the scheme rephasings by portfolio are shown in section 7 and Appendix 3.

2.4 The net reduction to the overall capital programme is £46.55M. Changes to the overall capital programme are summarised in Table 1 below. Approval for the new additions and changes is sought as part of this report.

Table 1 - Updated Capital Programme 2019/20 to 2023/24

2019/20 2020/21 2021/22 2022/23 2023/24 Total

£M £M £M £M £M £M

Approved Capital Programme - June 2019 67.25 42.33 15.16 8.20 0.00 132.94

Approved Changes - June to December 2019 2.58 (0.52) 0.00 0.00 0.00 2.06

Latest Approved Capital Programme 69.83 41.81 15.16 8.20 0.00 135.00

New Additions: Rolling Programmes 0.00 0.00 0.00 0.00 2.47 2.47

New Additions: Asset Management Plan Works 0.25 0.20 0.09 0.12 0.00 0.66

New Additions: Other Priority Schemes 0.00 4.37 1.63 1.03 0.05 7.08

New Additions: S106 Funded Schemes 0.00 0.29 0.19 0.33 0.00 0.81

Removal of Capital Provisions (Unallocated) (31.09) (4.22) (3.02) (3.04) 0.00 (41.37)

Scheme Savings (10.00) (1.20) (5.00) 0.00 0.00 (16.20)

Scheme Rephasings (2.19) (1.49) 2.20 1.36 0.12 0.00

Updated Proposed Capital Programme 26.80 39.76 11.25 8.00 2.64 88.45

Variance (43.03) (2.05) (3.91) (0.20) 2.64 (46.55)

3 Changes to the Capital Programme By Portfolio

3.1 The updated capital programme for each portfolio is shown in Table 2 below. This shows that portfolio capital programme schemes have increased by £28.05M. This includes the £11.02M of new priority capital additions; a £0.10M reduction in the capital budget for Green Initiatives (to be transferred to the Green Initiatives Revenue Reserve for Capital Purposes (RRCP) to fund associated green revenue costs); £8.23M transfers into the capital programme from the capital programme provisions relating to Manydown, Local Infrastructure Fund, Future Cemetery Provision, Basing View and Leisure Management Aquadrome and Tadley Pool arrangements; and £8.90M transfer from the Invest To Grow Fund to the Basing View Plot K capital scheme.

Table 2 - Updated Capital Programme By Portfolio

Updated Programme

Current Programme

Total Change

£M £M £M

Communities, Culture and Partnerships 6.00 3.80 2.20

Borough Development and Improvement 3.98 2.04 1.94

Environment and Enforcement 2.81 2.32 0.49

Finance and Service Improvement 10.97 3.91 7.06

Regeneration and Property 51.22 37.55 13.67

Homes and Families 8.07 6.57 1.50

Planning, Infrastructure and Natural Environment 5.40 4.21 1.19

Sub Total Portfolios 88.45 60.40 28.05

Capital Programme Provisions 0.00 49.60 (49.60)

Invest to Grow Fund 0.00 25.00 (25.00)

Proposed Capital Programme 88.45 135.00 (46.55)

3.2 Sections 4 to 5 and Appendix 2 summarise the changes to the current capital programme by individual portfolio programmes to show new additions and changes to existing schemes. Section 6 and Appendix 3 show the proposed budget transfers between schemes.

4 Details of Programme Changes (including new priority additions)

4.1 Additions to Rolling Programmes £2.47M

Finance and Service Improvement Portfolio

4.1.1 Replacement of Council Owned Vehicles £0.36M in 2023/24

The costs are based on renewing existing council owned vehicles when they reach the end of their cost effective life. Estimates are based on a detailed renewal programme covering all council owned vehicles which will also consider opportunities to reduce carbon emissions and improve energy efficiency. In many cases vehicles have already been extended beyond the maximum recommended life and as such there has been an increase in maintenance costs and downtime due to breakdowns. This situation will worsen if vehicles are not replaced at the optimum time.

4.1.2 ICT Replacement Programme £0.27M in 2023/24

The scheme seeks to ensure that the Council is using equipment that is up to date, reliable and within warranty periods, without it the Council would be running unsupported equipment which could leave systems unreliable. The scheme covers a broad range of equipment from laptops and desktops, printers, corporate print room, servers, networking, storage, wifi, backup capacity, security and telephony. Moving forward the scheme will need to be enhanced to ensure further operability with Smarter ways of working and the Council’s digital ambitions. Homes and Families Portfolio

4.1.3 Environmental Renewal Schemes £0.10M in 2023/24

The Environmental Renewal Scheme programme is part of the Council’s rolling capital programme and seeks to improve the quality of external spaces within identified priority areas within the borough. The various schemes address worn out areas of planting or generally improve areas where there is a deficiency of soft landscaping. There are 73 areas on the current prioritised programme. The scheme currently allows sufficient funding to develop and implement two improvement schemes per year. The first 10 areas will be addressed by 2021/22, leaving 63 areas that will need to be addressed in future years.

4.1.4 Home Improvement Financial Assistance £1.4M in 2023/24

There is a statutory requirement to provide mandatory Disabled Facility Grants (DFG) for adaptations up to £0.03M to improve the ability of a disabled person to live independently in their home. The scheme also provides limited discretionary funding to enable homeowners to undertake DFG adaptations costing over the mandatory limit or carry out essential repairs and who have exhausted other potential sources of funding. In 2018/19 this scheme grant aided 170 adaptations, including:

• 110 bathroom adaptations, many of which included additional measures such as stair lifts;

• 35 stair lift installations; • 18 major adaptations including construction of extensions and provision

of new facilities within existing dwellings; • 7 ceiling hoists installations; • 42 improvements to access into and around dwellings; and • 8 kitchen adaptations to allow meal preparation by disabled persons.

Planning, Infrastructure and Natural Environment Portfolio

4.1.5 Infrastructure/Asset Renewals £0.10M in 2023/24

This additional investment is required to renew and maintain Council assets ensuring compliance with health and safety and highways regulations. The Council has a duty of care to ensure its infrastructure is adequately maintained. This includes footpaths, footway steps, walls, guard rails, car parks and other highway infrastructure in former council house areas of the borough and all such infrastructure in parks and open spaces and other areas owned by the Council. The Council needs to ensure all areas are regularly inspected and defects are rectified in a timely and appropriate manner. Without robust management of these areas the Council is at risk of increased insurance claims and liability claims. Funding is required to carry out regular and routine inspections and renew assets/infrastructure as part of a planned maintenance programme.

4.1.6 Play Area Improvements £0.24M in 2023/24

This funding comprises of two programmes. £0.04M is required for the risk work programme which has been running for a number of years, providing play equipment repairs and replacement as identified through the annual independent risk inspection. £0.20M is required for the improvement programme, providing refurbishment opportunity for existing play areas. Maintenance costs on older equipment are higher with replacement parts more difficult to source, consequently it is increasingly necessary to remove a whole piece of equipment if a part cannot be sourced or renew a whole site where appropriate. The current cost to update all play areas in the borough is approximately £13.00M. The cost to update / refurbish all play areas that are over 30 years old is estimated to be £1.75M. A revised initial five year rolling programme from 2019/20 to replace all pre 1990 play areas would enable 21 sites to be refurbished. The industry standard is to replace equipment between 20 - 25 years. Section 106 funding is available, but is restricted to the creation of new facilities or in order to accommodate the additional population that would use an existing local play facility. In order to avoid closures of play areas or reducing levels of apparatus the Councils’ 150 play areas will need replacing on an ongoing basis. On average a play area will need to be replaced every 20 years. Many of the play areas originally installed in the 1980’s and 1990’s are in need of replacement.

4.2 Asset Management Plan Works £0.66M

Regeneration and Property Portfolio

4.2.1 Eastrop Performance Canopy – replacement of roof membrane £0.03M in 2020/21

The scheme is to replace the fabric canopy to the performance space with a modern equivalent. The canopy membrane has been patched repaired several times and a recent report advised that the membrane has exceeded its life expectancy. Further patch repairs are not possible. There are ongoing maintenance costs for the canopy which include an annual clean and check of the fixings and structure. There would be no extra costs if the canopy membrane is replaced. The aim would be to source a replacement product that was more robust and could withstand minor vandalism damage. Consultation has taken place with the Landscape and Biodiversity and Art Team. From an events point of view, the summer bands programme is due to continue on Sunday afternoons over summer months, plus a number of other events such as Eastrop Live and World Party which attract large numbers of people and community groups. On average it is estimated that the canopy is used by events about 10 times a year. The replacement of the canopy will provide a covered performance area which will extend its life for around 15 years.

4.2.2 The Fieldgate Centre Changing Rooms – refurbishment of changing rooms and showers £0.09M in 2022/23 The scheme is to refurbish the changing rooms to include replacement of hot water plant, lighting, ventilation and internal fixtures and fittings. The changing rooms form part of the community building, but are the responsibility of the Council to manage and maintain. A recent condition survey has been carried out which gives an assessment of the priority areas of work. The works will include updating lighting to LED and improved ventilation to meet current standards. The outcome of the scheme is to repair and update the building to keep it operational in the medium term. The works will also look to improve the energy efficiency of the building.

4.2.3 Replacement and Upgrade of Irrigation Systems at Various Sites £0.13M in 2023/24 This scheme is to undertake a planned programme of replacement and upgrading of the irrigation plant that serve various sports facilities around the borough. The Council has six sites which have irrigations systems to water golf greens, cricket squares, tennis courts, bowls clubs, and the astro pitch at Down Grange. The irrigation systems are maintained by the Council and are essential to maintain the quality of the surfaces. With the exception of Down Grange, which was replaced some years ago the irrigation systems are of similar age in excess of 25 years old. The systems are commissioned each year and the maintenance costs are increasing due to the age of the plant. The aim of the project is to replace the irrigation plant with modern equivalents, reducing the ongoing maintenance costs.

4.2.4 Ridgeway Centre – roof replacement £0.22M in 2020/21

The scheme is to replace the roof covering with an alternative material suitable for the pitch of the roof. The works would also involve the replacement of sun pipes and the existing roof ventilation system. The Ridgeway Centre is a Council owned community building built in 2000. The building has for some time suffered from isolated roof leaks. More recently the problems have become worse with multiple leaks. Various repairs have been undertaken. A recent survey of the roof coverings has been carried out which has identified that there is a potential problem with the roof tiles and the pitch of the roof. The recommendation is that the roof tile should be replaced with an alternative roof system. The outcome is to provide a new roofing system that would provide a watertight building for the next 25-30 years, thus maintaining the rental income from the building.

4.2.5 Stratton Park Pavilion – refurbishment and upgrade of external fabric and windows £0.11M in 2020/21 (£0.01M) and 2021/22 (£0.10M). The scheme is to replace the metal framed windows and doors to the building, provide additional security, roller shutters and to re-render or over clad and redecorate the external rendered walls of the pavilion. The pavilion is one of the Councils oldest sports pavilions, built in the early 1970’s. The outcome of the scheme is to improve the security of the building and to keep it operational in the short term, pending its replacement.

4.2.6 Multi-use games areas – replacement and upgrade of floodlighting £0.10M in 2021/22

The proposed scheme is to undertake a planned programme of lighting and control upgrades to the multi-use games areas and ball courts. The Council has seven multi-use games areas or ball courts which are provided with floodlighting for evening use. The lighting at the Tennis Centre and the Fieldgate have been replaced and upgraded to LED lighting. This leaves four sites at Winklebury, Popley, South Ham and Hatchwarren with original Metal Halide floodlights. The benefit of the scheme is to provide modern energy efficient lighting systems at these sites that are less costly to maintain and operate. Modern controls will enable the lighting to be controlled more effective reducing unnecessary electricity consumption.

4.3 Other Priority Schemes £7.08M

Borough Development and Improvement Portfolio

4.3.1 Athletics track and field surface refurbishment at Down Grange £0.35M in 2020/21

The club is one of the largest Community Clubs in the borough and provides wide range of activities for people to take part in athletics. At senior level, the club is also very successful with athletes competing at a high standard within the British Athletics League. This scheme is to replace the athletics track at Down Grange Sport Facility which has now reached 'end of life'. This includes the eight lane track, running areas for all jumping events (High, Triple, Long, Pole Vault) and all running / walking surface areas within the track for Javelin, Discus and Hammer.

4.3.2 Down Grange BMX track £0.08M, (£0.05M in 2020/21 and £0.03M in 2022/23)

This proposal seeks to formalise a popular but informal BMX track created in an area of woodland close to Down Grange House. The works would seek to address identified risks on the site and to manage mature trees that are impacted by the activity.

4.3.3 Town Centre Litter Bins £0.05M (£0.01M in 2020/21 and £0.04M in 2021/22) Replace and increase town centre street furniture litter bins. The current bins are constructed of cast iron material which makes repairs difficult and costly. The new bins will be constructed with durable and sustainable materials and will enable recyclable materials to be separated. Consideration will be given to buying solar street bins which compresses litter as it is deposited in the bin, increasing the litter holding capacity and which should result in a reduction in the need for emptying – saving on time, cutting costs and reducing emissions. Environment and Enforcement Portfolio

4.3.4 Eastlands Car Park Lighting Scheme £0.10M in 2020/21 The scheme involves the replacement of the existing lighting in Eastland’s car park with LED lights, with smart sensors that collect and monitor real time occupancy, light levels, temperatures and energy usage. The existing lighting makes use of energy intensive fluorescent lighting in the main and is largely original to the construction of the building in 1993. Some of the lighting has been replaced and updated as part of the ongoing maintenance of the car park. A full laser survey of the car park has been completed and a detailed design produced with a supporting financial business case. The cost for the works is just under £0.11M and payback is in 4.07 years with a carbon saving of 28.55 tonnes per year (an estimated 2.14 tonnes compared to 30.68 tonnes at present). The payback period is based upon initial energy savings of £0.02M per annum increasing by 8% per annum and will reduce further as there will also be maintenance savings of £0.01M per annum.

Finance and Service Improvement Portfolio

4.3.5 Replacement of Vehicles (Hart shared service) £0.72M (£0.65M in 2020/21, £0.03M in 2021/22 and £0.04M in 2023/24)

Replacement of operational vehicles rolling programme, required to deliver a shared service agreement for the period 1 April 2020 to 31 September 2026 All vehicle purchase costs will be recovered from Hart District Council through the shared service agreement over the life of the contract.

Transformation Programme

4.3.6 The MTFS and Budget Update Report 2020/21 to 2023/24 stated that through good financial management and forward planning the Council has been able to continue to maintain and support the delivery of frontline services. However, in light of the need to provide more efficient services and to raise more income locally, following the significant cut in central government funding, it is necessary for the Council to be able to position itself to be ‘Fit for the Future’ and has embarked on a programme of transformation activity.

4.3.7 Linked to the provision of the Council Plan priorities it is necessary to make use of new information, skills and technology to bring about the success the Council wants to see for the future of the Borough.

4.3.8 Digital Programme £3.71M (£1.65M in 2020/21, £1.06M in 2021/22 and £1.00M in 2022/23)

Making use of the latest technology is an important element in becoming more effective and efficient as a Council. It will not only support more customer centric service provision but is also a key factor in the successful implementation of Smarter Ways of Working. The programme of activity comprises of 4 elements: an improved Customer Digital Platform; an Enterprise Resource Platform; Data and Document Management; and IT Enablers. Table 3 below provides a breakdown of the expected spend across these workstreams.

Table 3 Digital Programme

CAPITAL

2020/21

£M 2021/22

£M 2022/23

£M 2023/24

£M

Total Capital

£M

Customer & Digital Platform

CRM,CMS,Booking, Payment & Forms 0.40 0.30 0.40 0.00 1.10

Telephony & CCM 0.00 0.06 0.00 0.00 0.06

ERP

HR, Finance & Payroll 0.50 0.40 0.60 0.00 1.50

Data & Document Management

Data Architecture & Governance 0.06 0.00 0.00 0.00 0.06

Master Data Management 0.03 0.00 0.00 0.00 0.03

Business Intelligence 0.03 0.00 0.00 0.00 0.03

IDOX EDRMS 0.14 0.00 0.00 0.00 0.14

Planning & Building Control IDOX 0.02 0.00 0.00 0.00 0.02

GIS 0.02 0.00 0.00 0.00 0.02

PMO System 0.01 0.00 0.00 0.00 0.01

IT Enablers

Cyber Security 0.01 0.00 0.00 0.00 0.01

IT Service Management 0.05 0.00 0.00 0.00 0.05

Resources

Management & SME's 0.40 0.30 0.00 0.00 0.70

Total Digital Programme 1.65 1.06 1.00 0.00 3.71

4.3.9 Smarter Ways of Working £2.40M (£1.90M in 2020/21 and £0.50M in 2021/22)

The programme aims to create a smarter working environment that is more flexible in terms of where, when and how employees work. It will make better use of office space, technology and project management creating a modern working environment that supports innovation and flexible approaches to changing needs.

There are 3 main workstreams; People; Workspace; and Technology. The People workstream is a revenue cost and is detailed in the MTFS and Budget Update report. Table 4 below provides a further breakdown in the expected costs of the Workspace and Technology Workstreams.

Table 4 – Smarter Ways of Working Programme (Workspace & Technology)

CAPITAL

2020/21

£M 2021/22

£M 2022/23

£M 2023/24

£M

Total Capital

£M

Technology

End User Devices 0.40 0.00 0.00 0.00 0.40

Meeting Room Technology 0.10 0.00 0.00 0.00 0.10

Desk-Top Architecture 0.13 0.00 0.00 0.00 0.13

Meeting Room AV & Booking System 0.12 0.00 0.00 0.00 0.12

Wireless Access Points & Cabling 0.05 0.00 0.00 0.00 0.05

Total Technology 0.80 0.00 0.00 0.00 0.80

Workspace

Workspace Refurbishment 1.10 0.50 0.00 0.00 1.60

Total 1.90 0.50 0.00 0.00 2.40

It should be noted that the total cost of this element of the transformation programme is expected to be £2.40M however, the cost of the End User Devices is already included within the IT replacement Programme of £0.40M.

It should also be noted that the Smarter Ways of Working programme does not aim to resolve the longer term maintenance and use of the Office Campus. The programme has been designed to ensure that the Council can move forward with its Fit for the Future agenda whilst ensuring value for money in the shorter term and being cognisant of a possible longer term vision.

Planning, Infrastructure and Natural Environment Portfolio

4.3.10 Eastrop Park Loddon Bridge Replacement £0.07M in 2020/21

The wooden bridge over the River Loddon has reached the end of its life and is essential to enable maintenance access to the north side of the park. The bridge also allows circular access around the park and is the only point of pedestrian access across the river at the east end of the park.

4.4 Section 106 Schemes £0.82M (fully funded from developer contributions)

Borough Development and Improvement

4.4.1 Section 106 – Sport and Recreation £0.16M

Contributions to improve sport and recreation improvements to help meet the needs of residents in the following areas: 2020/21 Swimming pool improvements at Testbourne pool £0.07M and

replacement and improvement to a pavilion at Bramley Football Club £0.09M.

Planning, Infrastructure and Natural Environment

4.4.2 Section 106 Open Space Improvements £0.41M

Open space improvements to help meet the needs of residents by providing additional open space facilities within the following local areas:

2020/21 Pamber Park improvements comprising access, seating bins and buffer planting £0.01M; Within Tadley improvements comprising enhanced kickabout facilities £0.02M;

2021/22 Beggarwood Woodland Park management plan infrastructure

projects £0.08M; Within Grove open space improvements £0.01M; and

2022/23 Old Down and Beggarwood Parks open space improvements

£0.29M.

4.4.3 Play Area Provision Improvements £0.20M

Providing and enhancing equipped play provision to help meet the needs of residents by providing additional play facilities within the following local areas: 2020/21 Oakley Kennet Way play area £0.04M;

Pamber Park enhanced outdoor fitness provision £0.01M; Within Tadley play area improvements £0.02M;

2021/22 Within Chineham play areas equipped play provision £0.05M;

Within Upton Grey installation of multi-use ball wall and the provision of outdoor gym equipment £0.04M; Within Baughurst play area improvements £1,000 allocated;

2022/23 Within Ashford Hill equipped play provision £0.02M; and

Rooksdown equipped play provision £0.02M.

4.4.4 Allotment improvements £0.05M

2020/21 Within Chineham and Rooksdown parish sites to meet the needs of residents within the local area.

5 Removal of Unallocated Capital Provisions and Scheme Savings

5.1 It is proposed that all unallocated capital programme provisions and scheme savings are removed from the updated capital programme, which has resulted in a reduction of £57.57M. The main changes are summarised in Table 5 and relate mainly to the removal of funding for land at Manydown which is no longer required and the removal of funding for other schemes where detailed proposals have yet to be agreed. In addition and as previously reported, the Invest to Grow scheme has ceased due to a lack of suitable investment opportunities being identified.

Table 5 - Removal of Unallocated Capital Provisions and Scheme Savings

2019/20 2020/21 2021/22 2022/23 2023/24 Total

£M £M £M £M £M £M

Environment and Enforcement 0.00 (0.10) 0.00 0.00 0.00 (0.10)

Capital Programme Provisions (31.09) (4.22) (3.02) (3.04) 0.00 (41.37)

Invest to Grow Fund (10.00) (1.10) (5.00) 0.00 0.00 (16.10)

Total Removed (41.09) (5.42) (8.02) (3.04) 0.00 (57.57)

6 Capital Scheme Budget Transfers Between Portfolios

6.1 There are proposals to transfer budgets under delegated powers between portfolios as set out in Table 6 below.

Table 6 – Capital Budget Transfers Between Portfolios

2019/20 2020/21 2021/22 2022/23 2023/24 Total

£M £M £M £M £M £M

Communities, Culture and Partnerships 0.59 0.96 0.66 0.00 0.00 2.21

Borough Development and Improvement 0.00 1.44 0.00 0.00 0.00 1.44

Environment and Enforcement 0.00 0.43 0.00 0.00 0.00 0.43

Regeneration and Property 0.84 10.45 1.35 0.36 0.00 13.00 Planning, Infrastructure and Natural Environment 0.00 0.04 0.00 0.00 0.00 0.04

Capital Programme Provisions (1.43) (4.42) (2.01) (0.36) 0.00 (8.22)

Invest To Grow Fund 0.00

(8.90) 0.00 0.00 0.00 (8.90)

Total Net Budget Transfers 0.00 0.00 0.00 0.00 0.00 0.00

6.2 Further detail of the proposed budget transfers between capital schemes can be seen in Appendix 3.

7 Slippage and Rephasings

7.1 The proposed programme identifies £2.19M of net rephasings from 2019/20 as summarised in Table 7.

Table 7 - Slippage and Rephasings By Portfolio

2019/20 2020/21 2021/22 2022/23 2023/24 Total

£M £M £M £M £M £M

Communities, Culture and Partnerships (0.53) 0.08 (0.28) 0.73 0.00 0.00

Borough Development and Improvement (0.06) (1.47) 0.87 0.61 0.05 0.00

Environment and Enforcement (0.12) 0.01 0.11 0.00 0.00 0.00

Finance and Service Improvement (0.35) 0.33 0.09 (0.07) 0.00 0.00

Regeneration and Property (0.37) (1.10) 1.31 0.09 0.07 0.00 Planning, Infrastructure and Natural Environment (0.76) 0.66 0.10 0.00 0.00 0.00

Total Rephased (2.19) (1.49) 2.20 1.36 0.12 0.00

7.2 The reasons for the rephasings and slippage from 2019/20 are summarised in Appendix 3 and detailed below.

Communities, Culture and Partnerships Portfolio – (£0.53M)

7.2.1 Developers Contributions for Replacement/Refurbishment of Community Facilities (£0.02M)

S106 funds are spent in conjunction with community organisations and further information on timing and deliverability has required some projects to come forward earlier and others to be delayed. A better picture of s106 allocation is being established for more informed forecasting.

7.2.2 Local Infrastructure Fund (S106) – (£0.02M)

This rephasing of LIF (S106) money is due to a change in the delivery programme of the Safer Bramley transport scheme. This is being delivered by HCC who have moved the delivery date to the 2020/21 financial year.

7.2.3 Local Infrastructure Fund (Provisions) (£0.39M)

The projects financed by the Local Infrastructure Fund are delivered, in the majority, by organisations external to the Council which limit control on delivery. This means that timing of the funding can vary and fluctuate depending on the vagaries of these projects, i.e. a change in project managers. There is therefore a need to rephase the provisions to cover projects that the Council are committed to but are occurring in future years.

7.2.4 Norden Community Project (£0.02M)

Appointment of a consultant to commence the place shaping work in Norden was unsuccessful in 2019/20 due to refining of the scope and approval of appropriate budget allocation. Appointment is now underway and the feasibility stage will commence in early 2020/21.

7.2.5 Play Council Site (£0.03M)

Demolition was due to take place in early 2020, it has however been decided to undertake a consultation exercise ahead of the demolition which will delay it until 2020/21.

7.2.6 Top of Town Community Facilities (£0.05M)

Work is ongoing to develop an approach to prioritise and make best use of the funds available and satisfy the needs of the three town centre community centres. Expenditure has been delayed as a result with progression anticipated to be possible in 2020/21.

Borough Development and Improvement Portfolio – (£0.06M)

7.2.7 Communication Improvement and Technology Infrastructure (£0.03M)

This relates to supporting the development of the 5G Living Lab and is reliant on grant funding from the LEP. Confirmation of this funding was delayed until January 2020 meaning after allowing for the procurement process to select industry partners, it is not expected to be spend until 2020/21.

7.2.8 Down Grange Sport Complex (£0.10M)

The significant first phase of work to deliver the new hockey pitch has now been completed in December 2019 and work will begin on phase two in the new year. There has been a few weeks delay in completing phase one due to inclement weather, which has in turn, has delayed the start of phase two.

7.2.9 Leisure Management Aquadrome and Tadley Pool £0.13M Rephased

Some maintenance works at the Aquadrome that were scheduled to take place over the course of 2020/21 have been brought forward to 2019/20 based on need concerning the flumes and roof work as well as additional works relating to the lagoon.

7.2.10 Sport and Recreation Improvements (S106) (£0.04M)

This budget requires planning years ahead and requires partnership working with community organisations to deliver the projects. Some schemes are able to be progressed quickly while others are slowed down due to various external factors, which therefore delays spend for the year. These have been rephased to a future year.

7.2.11 Tadley Pool Fitness Suite (£0.01M)

The project is now complete, although the final retention payment has yet to be made. This is expected to be completed early in 2020/21.

7.2.12 Town Centre Improvements (£0.01M)

This budget was allocated in order to provide bin storage enclosures at the top of town. A meeting with a contractor is taking place in January to progress the works, however at this stage, it is unknown if these will be completed by end of March 2020.

Environment and Enforcement Portfolio – (£0.12M)

7.2.13 Green Initiatives £0.01M

During the course of 2019/20 work was progressed to develop further a number of projects to deliver energy/cost savings measures that had previously been identified. This including supporting sports clubs and community facilities as well as in-house IT infrastructure. These have either been completed or are now being implemented and offering benefits to users as well as reducing the emissions emitted.

7.2.14 Town Centre Car Park Improvements (£0.13M)

The planned improvement works for Vyne Meadow car park have been postponed to 2020/21 as following a procurement exercise, no contractors were able to undertake this work prior to the end of March 2020. Finance and Service Improvement Portfolio – (£0.35M)

7.2.15 ICT Replacement Programme (£0.35M)

There was an underspend on the capital budget for the corporate print room as the decision was made, following guidance from the supplier, that the black and white printer did not need replacing at this point. However, the budget is still required to replace the black and white printer in future years. There has been limited in year spend against the desktop and laptop elements of the capital programme mostly due to the processes and investigations relating to the Councils Smarter Ways of Working project to ensure that any equipment purchased is future proofed for those works. Other savings across the budgets are due to effective procurements and changes in requirements for replacement technologies. The rephasing of the budgets will allow the IT Services to reduce future bids for additional capital. Regeneration and Property Portfolio – (£0.37M)

7.2.16 AMP Works (various sites) (£0.35M)

The AMP budget covers multiple properties, with 13 projects included in this year’s programme. The proposed rephasing relates to four projects:

i. Tadley Community Centre - roof lights. The Centre has had issues with water ingress and it was suspected that this was from the roof lights. Further inspections have been ongoing to assess the condition of the roof areas and it is now felt that the problem is with other areas of the roof. Some works are planned for this year but further works involve a change in the design of a section of the roof which will require planning consent. Consultation is underway with the Association on the design options. This will delay the main bulk of the works and a proportion of the budget is proposed to be re-phased to 2020/21.

ii. Maidenwell Pavilion Refurbishment - The works involve the updating of key plant within the building and the refurbishment of the changing facilities and showers. Following further investigations external advice is required in terms of replacement plant to ensure that the new installation is suitable for the future use of the pavilion and is energy efficient. The design element has delayed progress on the scheme. The pavilion is mainly used during the winter for hockey and as a result would have impacted on the use of the facility the revised programme is to complete the design and procurement in 2019/20 and carry out the works in spring/summer 2020/21.

iii. Anvil/Haymarket - Other Works - A total budget of £0.75M is included in the capital programme as a contingency for essential works to the Anvil/Haymarket Theatre. The figure was based on condition survey information and was spread over four financial years. £0.10M in 2019/20. It is therefore proposed to rephase the budget over future years.

iv. Anvil - Fire Alarm - The works involve the replacement of the fire alarm system at the Anvil. Previous fire risk assessments carried out for the Anvil Trust recommended that a new more comprehensive alarm system should be installed. The works will cause disruptions to the programming of performances and the Trust. The works will require a long lead in time. Works will require significant planning and the earliest any works could take place would be in 2021/22.

7.2.17 Basing View – Plot J – Norden House £0.03M Rephased

The demolition of Norden House is due to take place in 2020/21, the demolition contractor has been appointed and it has been identified that some preparatory work will be undertaken in 2019/20 resulting in a requirement to draw some additional budget in to 2019/20.

7.2.18 Basing View Hotel – Plot W (£0.38M)

The enabling works final costs are forecast to be less than originally budgeted. The final account is however still to be finalised which does not need to be submitted by the enabling works contractor until May 2020. Whilst the Council has requested that the final account is issued earlier, a rephasing of the unspent budget is proposed.

7.2.19 Basing View – Plot K/K1 £1.00M Rephased

The original 2019/20 budget was set based on a best estimate of projected cashflows over the life of the scheme. However, following receipt of the latest cashflow from Muse Developments (the Council’s development partner for the project) the budget allocation has been adjusted between years accordingly. The total overall budget for the scheme remains unchanged.

7.2.20 Down Grange Depot Enhancements £0.02M Rephased

Enhancements to the Depot at Down Grange are programmed for 20/21. The tender process will now be run in January therefore professional fees will be required in 2019/20 with works now likely to start in the Spring 2020.

7.2.21 Invest to Grow – Bear, Eagle, Lion Court and Former Oil Depot Site £0.02M Rephased

The works relate to the internal upgrades of the units. Works can only be carried out when the units become vacant. Works were planned this financial year to Unit 4, which had become vacant when the tenant went into administration. Based on previous units it was anticipated that costs for the upgrades to the unit would be in the region of £0.05M. Due to the condition of the unit and the specific alterations carried out by the vacating to tenant the costs were higher than anticipated. The rephasing is to bring the remaining budget forward to 2019/20 to cover the additional costs.

7.2.22 Re-Letting Works (£0.06M)

Budget to be used for undertaking minor improvements or refurbishments of vacant units prior to or to achieve new lettings. Spend is largely reactive and depends on opportunities arising through vacancies. There is £0.11M in the budget for 2019/20. Based on current spend to date and work planned for the remainder of the year, part of the budget is being re-phased to future years.

7.2.23 Manydown Development (Provisions) (£0.64M)

Funding for Manydown Garden Communities (MGC) LLP - due to the delays in signing the partnership contract with Urban and Civic and the delays in getting planning approved MGC LLP has not had the required outgoings and level of financial support originally envisaged when the budgets were set. The required forward loan funding has been reset against latest forecasts. Funding for Devco (loan notes) have been rephased in accordance with discussions deferring £0.50M from 2020/21 to 2021/22 Planning, Infrastructure and Natural Environment Portfolio – (£0.76M)

7.2.24 Allotment Improvements (£0.11M)

Improvement works at existing allotments have been put on hold pending the outcome of capital requests for further allotment funding in 2020/21. This will enable a more detailed options appraisal to be undertaken taking into account of the overall funding available over the next three years.

7.2.25 Play Area Improvements (£0.42M)

All projects are progressing and public consultation has now been completed. It is anticipated that the Open Space projects will be completed before the end of March. However, there is a need to undertake the design and build tender process for play equipment at Beggarwood and Popley, which will be completed by the end of February, and therefore the works will not be completed before the end of March 2020.

7.2.26 War Memorial Park Skate Park Replacement (£0.23M)

It has become necessary to rephase the Skate Park project, as well as the delivery of the play refurbishment programme within War Memorial Park. The early feasibility and consultation stages of the skate park project took longer than anticipated, due to high levels of interest, discussions and meetings with users. In order to make the right decision and meet the expectations of residents, users and members it was important that the consultation was given sufficient time. This caused some delays to programme, which have been significantly extended during quarter three due to technical and nuisance issues on another project site, Hanmore Road Play area in Chineham. The Council is now at the tender stage, and having discussed the scheme with potential contractors, whilst all were very interested in tendering for the project, none were in a position to be able to deliver before the end of the financial year. Skate Park construction is a specialist field, and at the current time, due to the trend in skateboarding, demand for new parks is very high and as such the companies concerned are working to significant lead in periods. As the skate park and play projects were designed to be delivered in tandem, this situation has impacted on the play area refurbishment programme. It is likely that both will now be delivered in the first quarter of 2020/21.

8 Capital Resources Available

8.1 The Capital Programme Strategy (Appendix 4) and the Council’s Investment Strategies, set out a framework for capital investment and limits for delivery of this programme and indicators which can be used to monitor the level of risk being taken with capital and investment activities.

The resources which can be used to fund the capital programme are as follows:

Council Resources - capital receipts from the sale of assets;

Central Government Grants and from other bodies;

Capital contributions from third parties;

Direct Revenue Financing (from revenue reserves);

Council Resources – internal borrowing; and

External Borrowing.

8.2 The current level of available resources is shown in Table 8 below:

Table 8 - Available Resources

Balance 31/03/19

Estimated Receipts/ Contributi

ons 2019/20- 2023/34

Funding Current

Cap Prog

Removal Unallocated Capital

Provisions / Scheme Savings

Estimated Balance 31/03/24

Resource £M £M £M £M £M

Capital Receipts 74.54 5.67 (74.24) 33.24 39.21

Other Capital Grants and Contributions 0.55 10.04 (9.14) 0.00 1.45 S106 Developer Contributions 9.38 6.32 (15.21) 8.13 8.62

RRCP - General/AMP 9.46 5.48 (5.05) 0.00 9.89 RRCP - Green Initiatives 0.65 (0.12) (0.52) 0.10 0.11

RRCP - Local Infrastructure Fund 4.10 1.30 (3.64) 0.00 1.76 RRCP - Housing Reserve - Manydown 2.32 0.34 0.00 0.00 2.66

RRCP - Basing View 0.12 0.00 0.00 0.00 0.12 Efficiency, Transformation and Digital Revenue Reserve

2.71 3.00 0.00 0.00 5.71

Internal Borrowing (Invest To Grow Fund) 25.00 0.00 (25.00) 16.10 16.10 External Borrowing (M3 LEP) 0.00 2.20 (2.20) 0.00 0.00

Total Available Resources 128.83 34.23 (135.00) 57.57 85.63

8.3 The gross new capital receipts, grants and contributions assumed in the financial forecasts total £22.03M during 2019/20 to 2023/24 and include the anticipated receipts linked to disposal of a site at Priestley Road, sale of vehicles, capital loan repayments, LEP grants in respect of Basing View development sites, government grants to fund disabled facilities grants and S106 developer contributions.

8.4 Funding for the capital programme has previously been heavily reliant on capital receipts from the sale of council owned land and property. These receipts have always had a degree of uncertainty regarding their amount and timing. Looking forward, there are no new significant capital receipts due to be received by the Council in the period to 2023/24. A review of existing operational land and buildings could identify one-off capital receipt opportunities and/or reduce revenue costs. The Council will continue to review the existing capital programme to ensure that all expenditure is essential and is supported by robust business cases.

8.5 Councils can opt to use new capital receipts generated from the sale of property, plant and equipment to March 2022 to fund transformation costs that lead to future efficiency savings. Currently the Council has no significant future capital receipts identified that would qualify under this initiative.

8.6 The Medium Term Financial Strategy includes a provision to make an annual ongoing revenue contribution to capital of £4.00M by 2023/24 (£8.50M over the MTFS period).

8.7 Other sources of new capital income include new capital receipts, Community Infrastructure Levy (CIL), Section 106 developers’ contributions, external grants, use of New Homes Bonus Grant or use of other earmarked capital receipts. Subject to business cases, further use of invested capital receipts or borrowing may also be future options, but both would impact directly on the revenue budget as additional savings will be required to replace the lost investment income and the repayment of a principal sum in respect of borrowing.

8.8 The Council introduced the Community Infrastructure Levy in July 2018. This is expected to be an important source of funding for future capital infrastructure with estimated annual income over the next 10 years averaging £2.00M to £3.00M per year. However, no significant income has been received at this early stage, as the levy is only payable on commencement of development. As part of future budget strategy processes there will be an annual opportunity for the Council to consider, consult and agree how CIL funding is allocated to meet priority community infrastructure needs resulting from development e.g. expanded or new facilities for sport, education, transport or community facilities in line with the Regulation 123 list. This could be to address infrastructure needs due to the impact of neighbouring new development or to provide additional strategic infrastructure.

9 Overall Updated Capital Programme And Funding

9.1 Details of the updated capital programme by portfolio and the use of resources to finance the capital programme for 2019/20 to 2023/24 is shown in Tables 9 to 10 below and Appendix 1.

Table 9 - Updated Capital Programme By Portfolio

2019/20 2020/21 2021/22 2022/23 2023/24 Total

£M £M £M £M £M £M

Communities, Culture and Partnerships 2.05 2.01 1.15 0.79 0.00 6.00

Borough Development and Improvement 0.83 0.80 1.13 1.17 0.05 3.98

Environment and Enforcement 1.03 1.24 0.47 0.07 0.00 2.81

Finance and Service Improvement 1.38 5.21 2.20 1.50 0.68 10.97

Regeneration and Property 19.23 26.36 3.26 2.30 0.07 51.22

Homes and Families 1.51 2.09 1.51 1.46 1.50 8.07 Planning, Infrastructure and Natural Environment 0.77 2.05 1.53 0.71 0.34 5.40 Capital Programme Provisions 0.00 0.00 0.00 0.00 0.00 0.00

Proposed Capital Programme 26.80 39.76 11.25 8.00 2.64 88.45

Table 10 - Use of Capital Resources

2019/20 2020/21 2021/22 2022/23 2023/24 Total £M £M £M £M £M £M %

Capital Receipts 17.93 17.61 3.98 2.60 1.14 43.26 48.91%

Capital Grants and Contributions

4.60 1.95 1.30 1.30 1.33 10.48

11.85%

S106 Developer Contributions

1.61 2.18 2.37 1.69 0.05 7.90

8.93%

RRCP - General/AMP 0.92 2.00 1.49 1.41 0.12 5.94 6.72%

RRCP - Green Initiatives 0.15 0.07 0.20 0.00 0.00 0.42 0.47%

RRCP - Local Infrastructure Fund Reserve 1.59 1.70 0.35 0.00 0.00 3.64 4.11% Efficiency, Transformation and Digital Revenue Reserve 0.00 3.15 1.56 1.00 0.00 5.71 6.46%

Internal Borrowing (Invest To Grow Fund) 0.00 8.90 0.00 0.00 0.00 8.90 10.06%

External Borrowing (M3 LEP for Eli Lilly building) 0.00 2.20 0.00 0.00 0.00 2.20 2.49%

Total Use of Resources 26.80 39.76 11.25 8.00 2.64 88.45 100.00%

9.2 The capital programme is largely resourced from within the Council’s own funds, capital receipts and external grants and contributions received as follows: financed from revenue reserves (17.76%), capital receipts (48.91%), along with Section 106 developer contributions and other capital grants and contributions (20.78%), internal borrowing (10.06%) and external borrowing (2.49%).

9.3 After financing the proposed capital programme to 2023/24 and making revenue contributions to capital allowed for in the Medium Term Financial Strategy, it is estimated that the resources available to fund the future essential rolling capital programme and asset management plan works and Local Infrastructure Fund schemes will include:

£9.00M of unallocated Revenue Reserves for Capital Purposes

£1.76M unallocated Local Infrastructure Fund Reserve

10 Capital Programme Strategy and Capital Programme Board

10.1 In accordance with the Prudential Code for Capital Finance in Local Authorities, the Council produces a Capital Programme Strategy to ensure that all of the priorities within the Council Plan are accounted for in the prioritisation and allocation of resources to the capital programme.

10.2 It is a requirement that the strategy is reviewed and approved annually by Council. The updated Capital Programme Strategy is attached as Appendix 4 for approval.

10.3 In order to oversee and co-ordinate the preparation, review and implementation of this strategy, it is proposed to establish a Capital Programme Board (CPB). The Board will oversee and endorse the Capital Programme Strategy, receive new bids for prioritisation and format a multi year capital programme taking into account projected available resources for submission to Cabinet and Council. The Board would also oversee and monitor in-year requests for changes and scheme progress as well as receive capital monitoring reports.

10.4 Through doing so, and taking a long term view, the Board should ensure that both individual projects and the programme as a whole is affordable and fits with the Council’s vision, priorities and outcomes as laid out in the Council Plan and other inter linked plans and strategies.

11 Legal Implications

11.1 There are no legal implications other than the requirement to update the capital programme and approve strategies prior to the start of each financial year.

12 Financial Implications

12.1 There are no direct financial implications of this report. This report principally deals with capital programme expenditure and the implications are set out in the main body of the report. However, the revenue implications arising from borrowing to support the capital programme are considered as part of the revenue budget and MTFS and Budget Update Report. In addition any revenue consequences arising from new capital schemes are considered as part of the approval process for each individual scheme and where appropriate, will be included in the revenue budget.

13 Risk Management

13.1 The risks associated with the activities relating to this report are assessed throughout the report and appendices to this report.

14 Climate Change Implications

14.1 This proposal should have a positive carbon impact.

14.2 A proportion of the capital funding is for proposed improvement works, usually resulting in improved energy efficiency and a reduced carbon footprint, for example, lower heating or lighting requirements.

14.3 However, it is vital that individual schemes also consider how to maximise the funding available to achieve carbon reduction, where possible. This is particularly the case with any new projects receiving funding. Mitigating and adapting to climate change is being increasingly embedded within Council decision-making but we will continue to work to ensure spending decisions take account of the carbon impact.

15 Equalities Implications

15.1 An equality impact assessment has been undertaken to consider the impact of the proposals for new capital funding requests on the protected characteristics groups and the implications for the Public Sector Equality Duty (Equality Act 2010).

15.2 This assessment concluded that the proposed new capital schemes and extensions of existing capital rolling programme schemes will be positive for a range of communities and groups. For example, maintaining and improving community and sports facilities will support people’s health and wellbeing and work to improve the environment (e.g. Council vehicles) and green spaces will be positive for all local communities. The proposed work to enhance play park provision will also benefit children, young people and their families. If approved, the changes being proposed should be monitored and communicated through a range of channels.

16 Consultation and Communication

16.1 There is no formal consultation required however Senior Leadership Team, Heads of Services and Project Managers have been consulted in preparing the reasons for variations contained in this report.

16.2 Once the capital programme has been approved by councillors, communication will take place using channels such as press releases, social media, the Council’s website and engagement with stakeholders, including parish councils and partner organisations.

17 HR Implications

17.1 There are no HR implications.

18 Alternative options considered

18.1 The update of the capital programme is undertaken within the resource constraints imposed on it. No new schemes can be added unless specific additional resources are identified. Alternative options for new capital spending are considered as part of the budget setting process in the light of the funding available and the overall financial position.

Date: 27 February 2020

Decision taken by: Council

Lead officer Executive Director of Finance and Resources (S151 Officer) – Sue Cuerden

Report author Head of Financial Services – Phillip Hood 01256 845660 Email [email protected]

Version Council Report

Dated 11 February 2020

Status Open

Confidentiality

It is considered that information contained within this report (and appendices) do not contain exempt information under the meaning of Schedule 12A of the Local Government Act 1972, as amended, and therefore can be made public.

Appendix 1

Updated Capital Programme 2019/20 to 2023/242019/20 2020/21 2021/22 2022/23 2023/24 Total

£M £M £M £M £M £M

Communities, Culture and Partnerships

CSPO vehicles 0.00 0.03 0.00 0.00 0.00 0.03

Developers Contributions for Replacement/Refurbishment of Community Facilities 0.43 0.13 0.40 0.42 0.00 1.38

Play Council Site 0.00 0.03 0.00 0.00 0.00 0.03

Local Infrastructure Fund (S106) 0.02 0.02 0.00 0.00 0.00 0.04

Local Infrastructure Fund 1.59 1.70 0.35 0.00 0.00 3.64

Norden Community Project 0.01 0.05 0.20 0.20 0.00 0.46

Top of Town Community Facilities 0.00 0.05 0.20 0.17 0.00 0.42

Communities, Culture and Partnerships Total 2.05 2.01 1.15 0.79 0.00 6.00


Communication Improvement and Technology Infrastructure 0.00 0.05 0.04 0.00 0.00 0.09

Down Grange Sports Complex 0.52 0.00 0.10 0.00 0.00 0.62

Sport & Rec Improvements (S106) 0.17 0.28 0.39 0.56 0.05 1.45

Tadley Pool Fitness Suite 0.00 0.01 0.00 0.00 0.00 0.01

Leisure Management Aquadrome and Tadley Pool 0.14 0.10 0.60 0.61 0.00 1.45

The Vyne School AGP (S106) 0.00 0.00 0.00 0.00 0.00 0.00

Town Centre Improvements 0.00 0.01 0.00 0.00 0.00 0.01

Athletics Track and Field Surface Refurbishment at Down Grange 0.00 0.35 0.00 0.00 0.00 0.35

Borough Development and Improvement Total 0.83 0.80 1.13 1.17 0.05 3.98

Environment and Enforcement

Future Cemetery Provision 0.00 0.43 0.00 0.00 0.00 0.43

Green Initiatives 0.11 0.07 0.20 0.00 0.00 0.38

Kempshott Public Conveniences 0.00 0.02 0.00 0.00 0.00 0.02

Parking And Access Schemes 0.21 0.23 0.23 0.07 0.00 0.74

Tadley Public Conveniences 0.00 0.02 0.00 0.00 0.00 0.02

Town Centre Car Park Improvements 0.38 0.35 0.00 0.00 0.00 0.73

Waste Contract Vehicle Financing 0.33 0.00 0.00 0.00 0.00 0.33

Town Centre Litter Bins 0.00 0.01 0.04 0.00 0.00 0.05

Eastlands Car Park Lighting Scheme 0.00 0.11 0.00 0.00 0.00 0.11

Environment and Enforcement Total 1.03 1.24 0.47 0.07 0.00 2.81

Finance and Service Improvement

ICT Replacement Programme 0.36 0.82 0.38 0.26 0.27 2.09

Replacement Financial System 0.24 0.00 0.00 0.00 0.00 0.24

Digital Programme 0.00 1.65 1.06 1.00 0.00 3.71

Smarter Ways of Working 0.00 1.50 0.50 0.00 0.00 2.00

Replacement of Council Owned Vehicles 0.78 0.60 0.23 0.24 0.36 2.21

Replacement of Vehicles (Hart shared service) 0.00 0.64 0.03 0.00 0.05 0.72

Finance and Service Improvement Total 1.38 5.21 2.20 1.50 0.68 10.97

Regeneration and Property

Basing View Hotel (Plot W) 0.01 0.38 0.00 0.00 0.00 0.39

Basing View - Plot J - Norden House 0.63 0.17 0.00 0.00 0.00 0.80

Basing View Plot K - K1 9.15 14.42 0.00 0.00 0.00 23.57

AMP Works (various sites) 1.16 1.09 1.01 1.58 0.00 4.84

Basing View Regeneration Plot O 0.01 0.00 0.00 0.00 0.00 0.01

Basing View - Subway Refresh 0.00 0.05 0.00 0.00 0.00 0.05

Chineham House 0.24 0.00 0.00 0.00 0.00 0.24

Council Offices 0.00 0.02 0.00 0.00 0.00 0.02

Down Grange Depot Enhancements 0.02 0.28 0.00 0.00 0.00 0.30

Wade Road Mess Facilities 0.05 0.00 0.00 0.00 0.00 0.05

Wade Road Wash Down Facility 0.07 0.00 0.00 0.00 0.00 0.07

Invest to Grow - Bear, Eagle, Lion Court and Former Oil Depot Site 0.07 0.00 0.00 0.00 0.00 0.07

Property Investment Strategy 7.57 8.90 0.00 0.00 0.00 16.47

Re-Letting Works 0.05 0.10 0.10 0.10 0.07 0.42

Manydown Development 0.20 0.95 2.15 0.62 0.00 3.92

Regeneration and Property Total 19.23 26.36 3.26 2.30 0.07 51.22

Homes and Families

Environmental Renewal Schemes 0.11 0.11 0.11 0.00 0.10 0.43

Home Improvement Financial Assistance 1.40 1.40 1.40 1.46 1.40 7.06

Low Cost Home Ownership Scheme 0.00 0.58 0.00 0.00 0.00 0.58

Homes and Families Total 1.51 2.09 1.51 1.46 1.50 8.07


Allotment Improvements 0.01 0.15 0.00 0.00 0.00 0.16

Street Lighting 0.10 0.00 0.00 0.00 0.00 0.10

Infrastructure / Asset Renewals 0.10 0.10 0.10 0.10 0.10 0.50

Open Space Improvements (S106) 0.11 0.39 0.95 0.29 0.00 1.74

Play Area Improvements 0.43 1.06 0.48 0.29 0.24 2.50

War Memorial Park Skate Park Replacement 0.02 0.23 0.00 0.00 0.00 0.25

Eastrop Park Loddon Bridge Replacement 0.00 0.07 0.00 0.00 0.00 0.07

Down Grange BMX Track 0.00 0.05 0.00 0.03 0.00 0.08

Planning, Infrastructure and Natural Environment Total 0.77 2.05 1.53 0.71 0.34 5.40

Grand Total 26.80 39.76 11.25 8.00 2.64 88.45

Appendix 2

Variations To Current Approved Capital Programme

2019/20 2020/21 2021/22 2022/23 2023/24 Total

£M £M £M £M £M £M

Removal of Provisions

Capital Programme Provisions

Future Borough Development Schemes (Provisions) 0.00 (2.16) 0.00 0.00 0.00 (2.16)

Future S106 Schemes (Provisions) 0.00 (2.06) (3.02) (3.04) 0.00 (8.12)

Manydown Development Investment (Provisions) (31.09) 0.00 0.00 0.00 0.00 (31.09)

Total Removal of Provisions (31.09) (4.22) (3.02) (3.04) 0.00 (41.37)

Scheme Savings


Green Initiatives 0.00 (0.10) 0.00 0.00 0.00 (0.10)

Invest to Grow Fund

Invest to Grow Fund (10.00) (1.10) (5.00) 0.00 0.00 (16.10)

Total Scheme Savings (10.00) (1.20) (5.00) 0.00 0.00 (16.20)

Additional New One-Off Schemes


Athletics Track and Field Surface Refurbishment at Down Grange 0.00 0.35 0.00 0.00 0.00 0.35


Town Centre Litter Bins 0.00 0.01 0.04 0.00 0.00 0.05

Eastlands Car Park Lighting Scheme 0.00 0.11 0.00 0.00 0.00 0.11


Eastrop Park Loddon Bridge Replacement 0.00 0.07 0.00 0.00 0.00 0.07

Down Grange BMX Track 0.00 0.05 0.00 0.03 0.00 0.08


Digital Programme 0.00 1.65 1.06 1.00 0.00 3.71

Smarter Ways of Working 0.00 1.50 0.50 0.00 0.00 2.00

Replacement of Vehicles (Hart shared service) 0.00 0.65 0.03 0.00 0.05 0.72


AMP Works (various sites) 0.25 0.20 0.09 0.13 0.00 0.66

Total Additional New One-Off Schemes 0.25 4.57 1.72 1.15 0.05 7.74

Additions to the Rolling Programme


ICT Replacement Programme 0.00 0.00 0.00 0.00 0.27 0.27

Replacement of Council Owned Vehicles 0.00 0.00 0.00 0.00 0.36 0.36

Homes and Families

Environmental Renewal Schemes 0.00 0.00 0.00 0.00 0.10 0.10

Home Improvement Financial Assistance 0.00 0.00 0.00 0.00 1.40 1.40


Infrastructure / Asset Renewals 0.00 0.00 0.00 0.00 0.10 0.10


Total Additions to the Rolling Programme 0.00 0.00 0.00 0.00 2.47 2.47

Additions to Section 106 Schemes


Sport & Rec Improvements (S106) 0.00 0.16 0.00 0.00 0.00 0.16


Allotment Improvements 0.00 0.05 0.00 0.00 0.00 0.05

Open Space Improvements (S106) 0.00 0.03 0.09 0.29 0.00 0.42


Total Additions to Section 106 Schemes 0.00 0.29 0.19 0.33 0.00 0.82

Appendix 3 Current Capital Programme Budget Transfers, Rephasing and Slippage

2019/20 2020/21 2021/22 2022/23 2023/24 Total

£M £M £M £M £M £M

Budget Transfers

Communities, Culture and Partnerships

Developers Contributions for Replacement/Refurbishment of Community Facilities 0.00 (0.04) 0.00 0.00 0.00 (0.04)

Local Infrastructure Fund 0.59 1.00 0.66 0.00 0.00 2.25

Communities, Culture and Partnerships Total 0.59 0.96 0.66 0.00 0.00 2.21


Leisure Management Aquadrome and Tadley Pool 0.00 1.44 0.00 0.00 0.00 1.44

Borough Development and Improvement Total 0.00 1.44 0.00 0.00 0.00 1.44


Future Cemetery Provision 0.00 0.43 0.00 0.00 0.00 0.43

Environment and Enforcement Total 0.00 0.43 0.00 0.00 0.00 0.43


Basing View - Plot J - Norden House 0.01 0.20 0.00 0.00 0.00 0.21

Basing View Hotel (Plot W) (0.01) 0.00 0.00 0.00 0.00 (0.01)

Manydown Development 0.84 1.35 1.36 0.36 0.00 3.91

Property Investments Strategy 0.00 8.90 0.00 0.00 0.00 8.90

Regeneration and Property Total 0.84 10.45 1.36 0.36 0.00 13.01



Planning, Infrastructure and Natural Environment Total 0.00 0.04 0.00 0.00 0.00 0.04

Capital Programme Provisions

Basing View Regeneration - Other (Plot J Norden House) 0.00 (0.20) 0.00 0.00 0.00 (0.20)

Future Cemetery Provision (Provisions) 0.00 (0.43) 0.00 0.00 0.00 (0.43)

Leisure Management Aquadrome and Tadley Pool Provisions 0.00 (1.44) 0.00 0.00 0.00 (1.44)

Local Infrastructure Fund (Provisions) (0.59) (1.00) (0.66) 0.00 0.00 (2.25)

Manydown Development (Provisions) (0.52) (1.35) (1.36) (0.36) 0.00 (3.59)

Manydown Development Investment (Provisions) (0.32) 0.00 0.00 0.00 0.00 (0.32)

Capital Programme Provisions Total (1.43) (4.42) (2.01) (0.36) 0.00 (8.23)

Invest to Grow Fund 0.00 (8.90) 0.00 0.00 0.00 (8.90)

Total Budget Transfers 0.00 0.00 0.00 0.00 0.00 0.00

Rephasing and SlippageCommunities, Culture and Partnerships

Developers Contributions for Replacement/Refurbishment of Community Facilities (0.02) (0.36) 0.03 0.35 0.00 0.00

Local Infrastructure Fund (0.39) 0.70 (0.31) 0.00 0.00 (0.00)

Local Infrastructure Fund (S106) (0.02) 0.02 0.00 0.00 0.00 0.00

Norden Community Project (0.02) (0.05) (0.13) 0.20 0.00 0.00

Play Council Site (0.03) 0.03 0.00 0.00 0.00 0.00

Top of Town Community Facilities (0.05) (0.26) 0.13 0.18 0.00 0.00

Communities, Culture and Partnerships Total (0.53) 0.08 (0.28) 0.73 0.00 (0.00)


Communication Improvement and Technology Infrastructure (0.03) (0.02) 0.05 0.00 0.00 0.00

Down Grange Sports Complex (0.10) 0.00 0.10 0.00 0.00 0.00

Leisure Management Aquadrome and Tadley Pool 0.13 (1.34) 0.60 0.61 0.00 0.00

Sport & Rec Improvements (S106) (0.04) (0.13) 0.12 0.00 0.05 0.00

Tadley Pool Fitness Suite (0.01) 0.01 0.00 0.00 0.00 0.00

Town Centre Improvements (0.01) 0.01 0.00 0.00 0.00 0.00

Borough Development and Improvement Total (0.06) (1.47) 0.87 0.61 0.05 0.00


Green Initiatives 0.01 (0.12) 0.11 0.00 0.00 0.00

Town Centre Car Park Improvements (0.13) 0.13 0.00 0.00 0.00 0.00

Environment and Enforcement Total (0.12) 0.01 0.11 0.00 0.00 0.00


ICT Replacement Programme (0.35) 0.33 0.09 (0.07) 0.00 0.00

Finance and Service Improvement Total (0.35) 0.33 0.09 (0.07) 0.00 0.00


AMP Works (various sites) (0.36) 0.00 0.52 (0.16) 0.00 0.00

Basing View - Plot J - Norden House 0.03 (0.03) 0.00 0.00 0.00 0.00

Basing View Hotel (Plot W) (0.38) 0.38 0.00 0.00 0.00 0.00

Basing View Plot K - K1 1.00 (1.00) 0.00 0.00 0.00 0.00

Down Grange Depot Enhancements 0.02 (0.02) 0.00 0.00 0.00 0.00

Invest to Grow - Bear, Eagle, Lion Court and Former Oil Depot Site 0.02 (0.02) 0.00 0.00 0.00 0.00

Re-Letting Works (0.06) 0.00 0.00 (0.01) 0.07 0.00

Manydown Development (0.64) (0.41) 0.79 0.26 0.00 0.00

Regeneration and Property Total (0.37) (1.10) 1.31 0.09 0.07 0.00


Allotment Improvements (0.11) 0.11 0.00 0.00 0.00 0.00

Play Area Improvements (0.42) 0.32 0.10 0.00 0.00 0.00

War Memorial Park Skate Park Replacement (0.23) 0.23 0.00 0.00 0.00 0.00

Planning, Infrastructure and Natural Environment Total (0.76) 0.66 0.10 0.00 0.00 0.00

Total Rephasing and Slippage (2.19) (1.49) 2.20 1.36 0.12 0.00

Appendix 4

Basingstoke and Deane

Borough Council

Capital Programme Strategy

February 2020

CONTENTS

1 Introduction to the Capital Programme Strategy

2 Aims of the Strategy

3 Aligning the Capital Programme Strategy with Council Priorities and Corporate Programme Board

4 Governance Arrangements and Monitoring

5 Financial Policies

5.1 New Homes Bonus

5.2 Community Infrastructure Levy (CIL)

5.3 Property Investment Strategy

6 Wider Contextual Drivers

6.1 Regeneration

6.2 Affordable Housing

6.3 Local Plan

6.4 Manydown

6.5 Climate Emergency

6.6 Public Spending Pressures

6.7 Technology

6.8 Customer Demand and Demographic Pressures

6.9 Economic Development

6.10 Commercialisation


Annexes

1 Capital Programme Board (CPB) – Terms of Reference

2 Guidance on Capital Scheme Approval Reports

Introduction to the Capital Programme Strategy

The purpose of this strategy is to provide an important link between the ambitions set

out in the Council’s longer term vision and Council Plan and the important investment in

infrastructure that will help turn that vision into a reality.

The strategy looks at how the Council will finance, allocate and manage capital

investment into services that are vital to supporting the development of a successful

and vibrant place.

The economic climate is challenging. However, the Council is committed to investing

now for the longer term. Financing that commitment is made possible by the Council’s

unique finances and the Council’s track record of strong financial resilience and

management.

Through this strategy the Council will aim to make every capital investment count by co-

ordinating and prioritising all available funding to achieve the Council’s goals.

This strategy sets out the measures to ensure the best results. These include:

A Balanced Programme of Capital Investment - It is recognised that

smaller scale projects can have a significant impact on the quality of life

and quality of services in the borough, so the programme is designed

and managed to achieve a balanced portfolio of capital investment that

covers on-going rolling programmes as well as large scale strategic

projects; and

Long Term Capital Investment and Planning - The Council has for a

number of years had a five year rolling programme that provides greater

certainty for financial and resource planning. This is particularly critical

for the largest projects with long lead-in and delivery periods. For the

largest projects longer term forecasts up to 20 years have been

developed to assist with the planning of financing and resources. There

will be a constant flow of projects being completed as well as new

projects entering into the programme, all designed to achieve the

Council’s goals.

Aims of the Strategy

The overarching aim of the Capital Programme Strategy is to provide a framework

within which the Council's capital investment plans will be prioritised and delivered.

These plans are driven by the Council Plan and the borough’s Horizon 2050 Vision

which was adopted by the Council and partners in March 2019.

Achieving the Council’s Vision within this context requires significant up front capital

investment and co-ordination. That investment has to be well planned, co-ordinated

and focused on the most important priorities.

With this capital investment strategy the Council is taking a strategic approach to

securing and directing additional capital investment in the Council’s assets to turn the

Vision into a reality.

The climate emergency, maintaining and enhancing the borough’s natural environment,

and sustainability are key issues in the borough’s Horizon 2050 Vision . It consists of

eight themes developed through extensive consultation and engagement with residents,

partners and stakeholders. The themes are:

• Homes and housing;

• Healthy, safe and inclusive communities;

• Natural environment;

• Sustainability;

• Transport;

• Education;

• Economy and entrepreneurship; and

• A borough with heritage and distinction.

Whilst the vision provides a road map to inform policy making, to plan for the future

development of the borough and to make Basingstoke and Deane a great place to live,

the Council Plan lays the foundation for delivery of the vision.

The Council’s capital investment programme will focus on the four main Council Plan

themes of:

• Strengthening communities;

• Protecting and enhancing our environment;

• Improving safety; and

• Planning for the future.

The capital programme will also include projects to deliver additional income, improved

asset management and efficiency savings in accordance with the multi strand approach

set out in the Council’s Medium Term Financial Strategy.

Aligning the Capital Programme Strategy with Council Priorities and Corporate Programme Board

Alongside the approval of the capital programme by Council in February 2020, it is

proposed to also establish a new Capital Programme Board (CPB). The Board will

oversee and co-ordinate the preparation, review and implementation of the Council’s

Capital Programme Strategy which must be approved by Council and reviewed

annually.

The Board will receive new bids for prioritisation and format a multi year capital

programme taking into account projected available resources for submission to Cabinet

and Council. The Board would also oversee and monitor in-year requests for changes

and scheme progress as well as receive capital monitoring reports.

Through doing so, and taking a long term view, the Board should ensure that both

individual projects and the programme as a whole is affordable and fits with the

Council’s vision, priorities and outcomes as laid out in the Council Plan and other inter

linked plans and strategies.

When considering initial proposals for new schemes, the CPB will ensure that only after

a positive contribution to one or more of the objectives has been demonstrated, will a

project be recommended for resource allocation by the Council.

The terms of reference for the CPB are noted in Annex 1.

The following principles will enable the Council to make sound capital investment

decisions based on scrutiny and the evaluation of projects and programmes:

All capital programmes and projects will be subject to comprehensive but

proportional appraisal in line with the Government 5 Case Business

Model and related HM Treasury Green Book guidance. In accordance

with this, a capital project sponsor must be able to demonstrate that a

rigorous process of options appraisal has been followed, requiring

evidence of need, cost, risk, outcomes and methods of financing. Capital

investment proposals which will result in a revenue cost saving or

efficiency are encouraged;

The appraisal process will be universally applied, rigorous, transparent

and focus on a clear decision;

All projects will be appraised and approved before any expenditure is

committed (other than preliminary expenditure necessary for preparation

of a business case);

Scrutiny at every gateway stage will include consideration of necessity,

value for money, viability, affordability and achievability; and

All major projects will be subjected to a post project review that focuses

on the benefits achieved, all obligations being met and lessons that can

be learned.

Annex 2 further details the scheme approval reports process.

Achieving high quality results from capital investment is the most important aspect of

the Capital Programme Strategy. The increased scale of capital investment over the

coming years requires a shift in the quality of project management, planning and

delivery. In recognition of this a new corporate Project Management Office (PMO) has

been established. The Vision of the PMO is:

Align programmes and projects with strategic direction;

Create best practice for consistent programme and project management

throughout the organisation;

Effectively prioritise and manage programmes and projects to a

successful completion;

Collaborative provision of resource, capability and resilience through

centralisation; and

Enhance reporting capability through modernisation of processes.

Governance Arrangements and Monitoring

Governance should not be unnecessarily bureaucratic, but must put the right controls in

place to manage a multi-million pound programme of projects. An effective and

proportionate governance structure will enable the Council to make timely and

responsive decisions based on sound business cases. It will follow principles of risk

management, escalation of issues and regular reporting.

The Council’s governance arrangements are set out in the Constitution, Contract

Standing Orders and Financial Regulations and Financial Procedures. These set out

roles and responsibilities and the decision making process.

Financial monitoring of the capital programme – this will be undertaken monthly with

quarterly reporting to the Strategic Leadership Team, Performance Panel and Cabinet.

The Audit and Accounts Committee reviews the Annual Statement of Accounts of the

Authority.

Monitoring delivery at key stages – this will be undertaken by the CPB and cover

tracking and reporting progress towards delivery of outcomes as well as the realisation

of the benefits and lessons to be learned, during and after completion of the projects.

This process will be part of an emphasis on continuous improvement and embedded

into a gateway approval system.

Financial Policies

The Council’s financial policies are set out in the Medium Term Financial Strategy.

Those which relate to the capital programme are as follows:

5.1 New Homes Bonus

The first £0.25M of new homes bonus in each year will be used to support the revenue

budget. New homes bonus income received in excess of £0.25M will be allocated as

follows:

• 20% of the new homes bonus will be allocated to a Local Infrastructure Fund

Reserve to provide enhanced funding for community infrastructure;

• 55% of the New Homes Bonus will be allocated to the Housing Reserve -

Manydown to provide funding for the development of Manydown; and

• 25% of the new homes bonus will be allocated to the Stability and Resilience

Reserve.

The first £0.25M of any allocation to the Housing Reserve - Manydown will be

reallocated to the Efficiency, Transformation and Digital Reserve.

5.2 Community Infrastructure Levy (CIL)

CIL income can be spent on “the provision, improvement, replacement, operation or

maintenance of infrastructure to support the development of its area”.

In aligning CIL spending with Council Plan priorities, project approval will be based on

the following eligibility criteria and sufficient CIL funding being in place:

Included in the Infrastructure Development Plan and covered by the

scope of the Regulation 123 list;

Have a local or wider community benefit, particularly those areas which

may be impacted by nearby developments;

Linked to the delivery of homes or jobs in the borough and with clear

delivery plans; and

Able to either lever in funds that would not otherwise be available or

provide funding for those that would not otherwise be delivered.

The agreed policy for the allocation of CIL is as follows:

25% to parishes with a neighbourhood plan;

15% to areas with no plan including town areas (capped at £100.00 per

Council Tax dwelling);

Town area allocation to be considered alongside with LIF to maximise

benefits of funding;

5% allocation to cover administration costs; and

70% to 80% for strategic schemes identified on Regulation 123 list to

support development.

Further information can be obtained from the original reports linked below:

https://democracy.basingstoke.gov.uk/ieListDocuments.aspx?CId=131&MId=1017


Applies to capital expenditure only within budget allocation agreed by council.

Property Investment Strategy:

All investments will need to demonstrate a positive risk based financial

return in excess of the medium term cash investment return as currently

invested capital receipts (the interest on which is supporting the base

budget) will be used to fund the schemes approved under the strategy;

All investments will require a robust business case to ensure that the

investment is affordable, sustainable and provides value for money; and

The investment must meet other agreed criteria set out in the Property

Investment Strategy.

https://democracy.basingstoke.gov.uk/ieListDocuments.aspx?CId=131&MId=1017

Wider Contextual Drivers

In respect of capital investment there are a number of global, national and local

contextual drivers, which, together with the Council’s vision set the scene for this

strategy. These drivers are:

6.1 Regeneration

There is a need to transform and improve some of the borough’s infrastructure and built

environment. The Council wants its neighbourhoods to be places to be proud of and the

town centre needs to be an attractive place to do business. Investing in infrastructure

will transform the borough and boost economic productivity and competitiveness. Work

on developing a regeneration strategy is in progress.

6.2 Affordable Housing

The Council’s Housing and Homelessness Strategy identifies requirements for

affordable housing delivery up to 2024. This is supported by the Council’s equity loan

scheme to enable people to purchase existing properties on the open market and for

new properties the Help to Buy South Scheme is operated by Radian Housing.

6.3 Local Plan

The Local Plan is a statutory document which all Local Planning Authorities must

produce (and review every five years) to guide development in their area. It includes a

spatial strategy, allocating land for future growth to meet needs, in addition to more

detailed policies to guide decisions on planning applications. The plan covers all types

of development, from housing to employment, schools, roads, parks, shops and

community facilities. The current adopted Local Plan covers the period 2011-2029 but is

now being reviewed in line with national planning requirements. The updated Plan will

cover the period up to at least 2038 and the published timetable outlines an adoption

date for the new plan of 2023. As the council’s primary planning document, the Local

Plan will build upon other council strategies to direct growth and change to appropriate

locations and therefore achieve sustainable development to create places people want

to live, work and locate their businesses.

6.4 Manydown

Development of land at Manydown is a key strategic scheme for the Council in

delivering the Local Plan and communities for the future. Manydown provides the

opportunity to attract external funding into the borough for delivery of improved

infrastructure, make ecology improvements and use land not for development as local

carbon off-setting.

6.5 Climate Emergency

The Council has committed to its activities being carbon neutral by 2025 and the entire

borough being carbon neutral by 2030. Capital investment plans will be important in

delivering this e.g through electric vehicles, more efficient building, grants for green

initiatives etc. The Council will also be actively looking at opportunities to invest capital

in revenue generating green energy schemes or similar and also the opportunities to

draw in external grant funding. Particular opportunities may exist with large warehouse

roofs where the generated electricity can supply the occupants rather than going into

the grid.

6.6 Public Spending Pressures

Locally the Council aims to ensure that the maximum benefit is obtained from capital

investment in terms of achieving Council Plan priorities. Capital investment also

provides the opportunity to generate additional income and to make savings through

invest to save schemes.

6.7 Technology

This continues to rapidly evolve, profoundly affecting many parts of our lives -

technology is changing the way people communicate and the way customers can

access information and the Council’s services. Technology also enables the Council to

provide some services more efficiently and effectively.

A fundamental review has been undertaken of the Council's use of technology, with the

objective of positioning this not merely as an essential tool for the delivery of services,

but rather an intrinsic part of the Council's future ‘DNA'.

The Council aims for its customers to have an increased and better ability to self-serve,

online, at a time that suits them, while ensuring that the requisite support is available for

customers who do not have the skills or means to interact with us digitally.

The Council’s Digital Programme will enable the Council to operate a leaner structure,

whilst also delivering savings in third party spend (with contractors and suppliers) and

assets (such as property and office accommodation). These will be through enabled

reductions in facility requirements, customer contact structures, consolidation of back

office and corporate service functions and retirement of old IT legacy.

6.8 Customer Demand and Demographic Pressures

Demographic changes are driving up the overall demand for services and customers’

expectations are high including expectations of services and the quality of the place in

which they work and do business.

6.9 Economic Development

The Council is working with key partners including the M3 LEP, HCC, business

organisations, private sector partners, local schools and colleges, government

departments and training providers to generate economic growth in the borough.

The current focus is on supporting the attraction and retention of businesses, providing

property solutions for business, sector development and facilitating businesses' support

services to maximise the potential of the borough through the enhanced cultural, retail

and hospitality offer, improving productivity, and ensuring that all residents can benefit

from, and contribute to growth. The Economic Development team has an active

programme for working with developers and occupiers to ensure that residents of the

city are given the opportunity to gain employment created by major development

schemes. It also levers significant external funding for labour market interventions.

6.10 Commercialisation

Local authorities face a difficult financial climate with ever decreasing funding from

Central Government. This has necessitated Councils looking at innovative ways to

generate regular revenue streams so they can reduce reliance on Central Government

funding.

To enable the Council to continue to deliver the same very high level of resident satisfaction the Council will focus on opportunities that may exist to become more commercial in their approach.

This will include defining what being commercial means for the Council along with a full update of the Commercialisation Strategy working with managers to deliver cost effective services across the organisation.

Training and support will be provided to officers to ensure that they are more commercially aware and that this approach is extended into our contract management to building strong and resilient relationships with our suppliers and clients.

Through a commercialisation academy, opportunities to develop new income streams will be identified which support the Medium Term Financial Strategy, whilst continuing to drive efficiency in existing services.

The current key area of focus is to deliver a commercial vision and maximising income from existing and potential advertising revenue streams. The income created from this activity should not only contribute to the MTFS but also finance the necessary structure required to deliver the outcomes of this work in the longer term.

Along side this consideration is being given to further development of options for ‘trading services’ with other local authority partners.


Many Local Authorities have made the decision to expand their investment property portfolios, which provides an important and substantial revenue income stream, in order to generate a higher level of income by acquiring additional properties.

The Council's Property Investment Strategy was approved by Council in February 2017. This has now successfully committed the investment of over £32.51M which will deliver additional income of £2.30M per annum. In addition to new investment the strategy covers a review of existing property investments and the development of a revolving fund approach to new investment which will be considered by the Capital Programme Board.

Further diversified investment in property has also been achieved through investment in the CCLA Property Fund and forms part of the Treasury Management Strategy.

Annex 1

Capital Programme Board (CPB) – Terms of Reference

When considering initial proposals for new schemes, the CPB will ensure that only after

a positive contribution to one or more of the objectives has been demonstrated, will a

project be recommended for resource allocation by Cabinet.

The CPB will be chaired by the Cabinet Member for Finance and Service Improvement

and lead officers responsible for the strategic direction of capital investment for the

council.

The CPB will consider the best approach to delivering capital schemes in order to

enable funding to be better aligned with other partners and funding sources and ensure

a borough wide approach is taken.

All applications/bids for external capital grant funding will be presented to the CPB

ensure they are in line with agreed priorities and outcomes and that all capital and

revenue consequences have been considered.

Capital resources will also be managed by the CPB and it will review and evaluate all

capital bids for resources along with need for external borrowing and levels of voluntary

‘Minimum Revenue Provision' (MRP). It will then recommend to Cabinet/Council a

prioritisation of resources to ensure alignment with other spending plans and the

maximisation of benefits to the council and achievement of council outcomes, priorities

and Executive commitments

The CPB will recommend the use of both non-ring fenced and ring-fenced resources

and also the general prioritisation of resources so that Cabinet/Council can make well

informed final decisions on the utilisation of resources.

The CPB will also undertake an annual review of the individual capital schemes which

are included in the capital programme to:

Ensure that schemes still meet strategic priorities and outcomes via a

capital appraisal process;

Review their continued relevance in the context of a dynamic and

constantly developing organisation;

Consider the progress of schemes including any reasons for delayed

starts or variations to approved budgetary allocations and re-phasing of

planned expenditure; and

Identify any unutilised or underutilised resources.

It will consider any reallocation of resources.

The Capital Programme Board will made up of the follow members:

Cabinet Member for Finance and Service Improvement (Chair);

Leader of the Council;

Chief Executive;

Executive Director Finance and Resources (S151 Officer);

Executive Director Borough Development (Deputy Chief Executive);

Cabinet Members (as relevant to schemes to be considered);

Head of Financial Services; and

Head of Property and Assets

By Invite:

Executive Director for Borough Services;

Heads of Service; and

Project/Programme Managers

Annex 2

GUIDANCE ON CAPITAL SCHEME APPROVAL REPORTS

In future all additions to the council’s capital programme will require a robust business case that identifies the total cost of the scheme, that it is affordable, and funding requirement identifying any specific funding sources i.e. grant funding.

It should be noted, that if the need to borrow is identified as part of funding the scheme, the council has legal maximum limits on its ability which are agreed by council annually as part of the Treasury Management Strategy.

Process of Approval

All proposed schemes to be considered for capital investment must follow a two stage process.

Stage one: Outline Business Case

A high level option appraisal should be undertaken covering, justification and links to council priorities, options, achievability, risks and a financial summary, agreed with the Chief Financial Officer, demonstrating a positive return on investment. This should be completed in consultation with the relevant Executive Director and Portfolio Holder; and

The scheme request will then be reviewed by the Capital Programme Board. Once reviewed, the Capital Programme Board will then recommend whether a further detailed business case is required in order for the scheme to be fully assessed.

Stage two: Detailed Business Case

All schemes progressing to stage two must be supported by a detailed business case using the standard template maintained by the Corporate Programme Management Office. The business case must cover the following;

Business need

A summary of what the scheme is and why it is required.

Scheme objectives

Description of how the scheme will contribute to the council priorities;

Outline the main benefits to be produced by the scheme;

Define the key success factors and how success will be measured; and

Outline main stakeholder groups and their contribution to the scheme. Option appraisal

Outline all options considered, the general approach taken (refer to Council’s option appraisal guidance) and identify the preferred option;

Include financial and non-financial benefits; Outline the risk assessment and mitigation (link to corporate risk

policy); and Provide a sensitivity analysis showing the effect of changes in critical

factors.

Achievability

Provide a high level plan for achieving the desired outcome with key milestones;

Should demonstrate the period of time over which the scheme will be implemented; and

Provide outline contingency plans.

Financial Summary

Identify the whole life cost of the scheme including both revenue and capital costs and how any recurring revenue cost implications will be met; and

Provide financial analysis that demonstrates the preferred option provides a positive return on investment and that where external borrowing is proposed, how would this be repaid from scheme benefits.

Key Assessment Criteria

The assessment will involve consideration of the business case areas using the following criteria;

Non-Financial Areas

How well does the proposal meet council priorities?; Are key stakeholders supportive?; Have a range of options been considered?; Have innovative approaches been considered?; Have alternative delivery options been considered?; Can the scheme be delivered with the council’s current capability and

capacity?; Can the risks be managed?; and Does the scope or timescale need to change?

Financial Assessment

The preferred option must demonstrate a positive return on investment and be affordable. Higher scheme returns may need to be required depending on the risk assessment and level of benefits, both financial and non financial;

A reasonable assessment of whole life costs of the scheme should be used in the evaluation but avoid spurious accuracy;

How sensitive are the key assumptions; and Consider alternative funding sources.

Scheme sign off and approval

The proposed process for assessing and gaining formal approval for new schemes is as follows;

The Business Case must have been approved by the Executive Director and Portfolio Holder;

The resource sections of the business case must have been cleared with the relevant corporate service area e.g. legal;

The financial summary in the detailed business case must be signed off by the Chief Financial Officer;

The Capital Programme Board will assess the business case and make a recommendation to Cabinet and Council as relevant;

If the capital programme contains a scheme budget (or a general budget) then approval to spend will be subject to the virement delegations set out in 2.13 of the Financial Procedures; and

If there is no funding in the approved capital programme then a Council decision would be required.

Post scheme review and ongoing monitoring

A post scheme review should be completed in accordance with best practice and Capital Programme Board will agree which of these reviews it wishes to see.