Issue - meetings

Report of the Cabinet Member for Finance and Assets

The Cabinet Member for Finance and Assets introduced her report, saying that the Capital, Investment and Treasury Management Strategies would provide the funding for the ambitious multi-million pound strategy set out in the budget approved in February, and ensuring that council tax payers’ money is spent and invested wisely for maximum return.  She said it is the real heart and soul of how the council manages money and services, from regenerating our favourite assets to EV charging points and safe cycle parking.

She went on to say that the housing capital programme proposed a £104.7m investment between 2024-25 and 2028-29, to increase the supply of social and affordable housing in Cheltenham, in addition to the £35m already spent on this.  Although a huge sum, she said there will always be a housing list, but the council will use every penny of the housing revenue account wisely and do all it can to deliver houses – as always in investing in Cheltenham for Cheltenham. 

She urged Member to approve the strategies, and thanked officers of the finance and assets team for making the detail of the work a reality and delivering one of the most innovative and inventive financial strategies of any council of the country.

Questions

A Member thanked the Cabinet Member and officers for the report, noting that the Capital Strategy states that capital expenditure will be funded from external resources, and capital receipts from the disposal of surplus assets where possible, with borrowing only used if no other funding source is available, and debt repayment and interest costs covered without additional pressure on the revenue budget.  He said Table 2 of the Capital Strategy shows £171m of capital expenditure being financed by debt over the next three years, and Table 7 shows financing costs for the same period falling from £4.6m to £4.2m, a reduction which, given current and future interest rates,  can only be achieved if a substantial portion of planned investment is financed from external resources and capital receipts. 

He asked for assurance that in reality, the majority of planned investment will be financed from external resources and capital receipts rather than the amount of new debt shown in Table 2, and asked if the Cabinet Member agreed that while a prudent level of borrowing to fund investments in acceptable, it would be inappropriate to borrow to meet interest payments.

The Cabinet Member for Finance and Assets said she would stand behind the finance team’s decades of experience in investment planning, and said that with some substantial assets in its portfolio, the council will do all it can to finance within its means through asset disposals and redeployments. .

In response to further questions, the Cabinet Member for Finance and Assets confirmed that:

-       the county council receives 74% of council tax income, understandable as it delivers very expensive services such as social services, education and highways, but unfortunate in that it means that CBC has no jurisdiction over some things, such as potholes and paving.  ...  view the full minutes text for item 10