Agenda item

Report of the Deputy Leader of the Council

The Deputy Leader referred to the ambitious capital investment programme the Council was embarking on and how, in order to deliver this ambition, the Council was required to have in place a capital framework as an integral part of the annual budget framework.  The Capital Strategy had been developed as an overarching framework that would develop and govern the capital programme and support the delivery of the Council’s growth ambitions.

The Capital Strategy at Appendix A set out the governance with respect to the formation of the capital programme and ensured that due consideration would be given to the affordability, sustainability, risks and rewards and provided a framework for the management and delivery of the capital programme.

In the draft 2019/20 capital programme proposals the Cabinet had allocated £10m for capital programmes and the allocation of this funding, would be driven and governed by the Property Investment Policy and supported by the Capital Strategy.

The draft policies were attached to the report for review by the Growth OSC.  Cabinet had already considered these policies and once the comments from this Committee had been, they would be submitted to Council on 1 March for approval as part of the budget framework proposals for 2019/20.

The Capital Strategy would sit as the overarching strategic framework with the Property Investment Policy (PIP), the Treasury Management Strategy and the Asset Management Strategy and would be intrinsically linked in order to support the delivery of the corporate ambitions.  The Asset Management Strategy was being developed and would be presented to Growth OSC at a future meeting.

The Property Investment Policy (PIP) would have broad objectives and include the following areas within its scope:

·      An option to purchase tenanted property and carry out landlord functions;

·      An option to build or develop property to be let to interested parties;

·      An option to acquire land to be developed or make available for development;

·      An option to develop existing land or property, and

·      An option to undertake any other investments for which it had legal powers

A broader criteria would enable maximum flexibility when assessing potential investment opportunities with a possibility for a wide range of return measures.  The focus on investment opportunities would mainly be within the district of South Kesteven. 

Discussion took place on potential locations and whether these would primarily be within the District or whether there would be flexibility to consider options just outside the District. It was noted that primarily, locations would be considered within the District,  but consideration would be given to locations that overlapped Districts.

Members were reminded that the last year had been transitional and the Council had been working towards different ways of working that would enable the Council to be more self-sufficient. 

Cllr Peter Stephens left the meeting at 11.40am

Reference was made to the investment returns and the yield test measurements and how they were calculated. Also discussed was the lack of office space within the District and the need to create more commercial space as well as social housing.

In response to Members queries, it was noted that the HRA would be used for social housing and that Right to Buy would be a clause but there would be exemptions.

Recommendation:

That following careful consideration of the report together with the appendices, the Growth Overview and Scrutiny Committee recommends to Council that the Capital Strategy and the Property Investment Policy are adopted as set out at Appendix A and B in the report.