Contact: Jon Pittam, ext 7400, e-mail: [email protected]

1 Summary

1.1 The accompanying report sets out for approval the proposed capital programme for 2005/06 to 2008/09, based on the guidelines agreed by Cabinet on 13 December 2004 and the support for capital schemes recently announced by the Government. The proposals take account of the County Council's capital strategy and the Prudential Code for Capital Finance in Local Authorities including the capital financing position, the level of debt outstanding and the consequences for the revenue budget and council tax.

1.2 The following decisions are sought, based on the recommendations of the Leader and Cabinet to the County Council for the capital programme for 2005/06 to 2008/09:

1 That the Environment capital scheme for Safer Routes to Schools be controlled on an accrued expenditure basis, with effect from 2004/05 (paragraph 5.4 of the main report).

2 That it be a recommendation to Council that:

i) £1.85m be added to the Education capital programme for 2004/05 to provide a new Chiltern Primary School in Basingstoke (paragraph 4.8)

ii) that additional unsupported borrowing of £1.805m be used in 2005/06 and 2006/07 to finance most of the cost of the new Chiltern Primary School, to be repaid from the sale of the former Worting infant school site (paragraph 4.9)

iii) that additional unsupported borrowing of £2.857m be used in 2005/06 and 2006/07 to finance part of the cost of the scheme to provide sports facilities at Crestwood Community School, Eastleigh, which is included in the proposed capital programme for Education for 2005/06, to be repaid from the sale of excess site area at the school (paragraph 4.10)

iv) that £4.9m be added to the Policy and Resources capital programme for 2004/05 for the purchase of a site at Mount Hospital, Bishopstoke and to cover holding costs prior to its disposal for redevelopment, subject to the executive member for Policy and Resources approving the purchase (paragraph 6.8)

v) that additional unsupported borrowing of £4.45m be used in 2005/06 and 2006/07 to finance part of the cost of the Mount Hospital site, with the initial payment of £0.45m being met from the provision in the 2004/05 capital programme for advance and advantageous land purchases (paragraph 6.8)

vi) that the executive member for Social Care be asked to report to a future meeting of Cabinet on the proposed programme for Social Services including the overall use of future capital receipts made available to Social Services to cover:

· £1.32m for Social Services' contribution towards the cost of the improvements already made to residential homes for older people

· £0.375m for the replacement day centre for older people in the Hythe and Dibden area

· £1.7m for the shortfall on the SWIFT social care IT system (paragraph 8.3)

vii) that the requests from the executive member for Social Services to use unsupported borrowing be deferred pending the report referred to in recommendation vi) (paragraph 8.4)

viii) that Cabinet be authorised to determine any further use of unsupported borrowing within the County Council's agreed prudential framework for capital finance

ix) the capital programme for 2005/06 be approved as set out in Appendix 3 of the accompanying report and subject to the conditions set out in section B.3 of the County Council's Financial Procedures and, where appropriate, to the approval of the Executive Member for Policy and Resources to the proposed re-use of capital receipts

x) the capital programmes for 2006/07 to 2008/09 be approved as set out in Appendix 3 for the purpose of undertaking design work (including the preparation of feasibility and design project appraisals)

xi) expenditure on preliminary design and planning work for major transport schemes be permitted when they have achieved a place in the County Council's Local Transport Plan, subject to the cost being met within existing Government allocations

xii) authority be given to incur expenditure on land purchases as follows:

(a) up to the sum specified in respect of sites still required for the schemes included in the capital programme for the period 2005/06 to 2008/09 provided that the relevant scheme has been the subject of a feasibility or design project appraisal approved by the relevant executive member

(b) up to the amount included in the 2005/06 programme in respect of advance and advantageous land purchases.

2 Reason

2.1 The full County Council must agree the capital programme for 2005/06 to 2008/09 at its meeting on 23 February 2005. The Leader will present his budget speech and recommendations at that meeting, including proposals for the capital programme. This report provides the background to the capital programme and proposes the recommendations from the Leader and Cabinet to the County Council.-

2.2 These decisions support all the aims of the corporate strategy as the capital programme provides financial resources for:

Aim 1 - maximising life opportunities

Aim 2 - stewardship of the environment

Aim 3 - achieving economic prosperity

Aim 4 - building strong and safe communities

Aim 5 - improving services

Aim 6 - developing councillors and staff.

3 Other options considered and rejected

3.1 Other options are not available as far as process and timetable are concerned, but the leaders of the opposition parties may wish to present their own recommendations on the capital programme to the County Council as amendments to these proposals.

4 Conflicts of interest declared by the decision maker or a member or officer consulted

4.1 Not applicable.

5 Dispensation granted by the Standards Committee

5.1 Not applicable.

6 Reason for the matter being dealt with if urgent

6.1 Not applicable.

Approved by: Date:

Councillor T K Thornber, C.B.E