Issue - meetings

Report of the Assistant Director of Finance (Section 151 Officer)

Purpose of report

To consider the draft Capital and Investment Strategy for 2024-25.

Recommendations

The meeting is recommended:

1.1      To recommend the draft strategy for 2024-25 to Executive.

Resolved

(1)      That the draft Capital and Investment Strategy for 2024/25 be recommended to Executive.

The Assistant Director of Finance and Section 151 Officer submitted a report for the Committee to consider the draft Capital and Investment Strategy for 2024/25. The Strategy must be approved by Full Council annually and must satisfy the requirements of government legislation and CIPFA guidance.

The Portfolio Holder for Finance introduced the report and advised the Committee that the Capital Strategy demonstrated how the council took capital expenditure decisions in line with service objectives and properly took account of stewardship, value for money, prudence, sustainability and affordability.

The Portfolio Holder for Finance advised that there had been a change in the strategy to the Council’s minimum revenue provision which was an amount that had to be set aside by Council’s in respect of any capital borrowing that it had previously incurred each year. The Council had changed from a straight-line basis to an annuity basis.

The Portfolio Holder for Finance explained that the Investment strategy related to non-treasury management investments. Investments covered by this strategy include loans to third parties, purchased of shares (in subsidiaries, businesses etc) and property.

Following questions from the Committee querying if the change in the minimum revenue provision was in line with other local authorities, the Head of Finance advised that there were four recognised methods for minimum revenue and the one chosen was the most appropriate for the Council to use.

Following a question asking why higher value investments like Castle Quay were mis-classified and had been re-classified in the report, the Portfolio Holder for Finance advised that officers would provide a written response to the Committee.

In response to a question from the Committee regarding the Council’s investment in banks and if they were investing in oil and gas, the Portfolio Holder for Finance advised that in stewarding investments, the Council was required to get best value for the tax-payer which had a strong effect on what the Council could invest in. The Portfolio Holder for Finance advised that officers would provide a written response to the Committee following the meeting.

Resolved

(1)      That the draft Capital and Investment Strategy for 2024/25 be recommended to Executive.