Contact: Paul Carey-Kent, Deputy County Treasurer ext 7525, e-mail:
[email protected]
David Ward, Assistant Director ext 7529, e-,mail: [email protected] and
Annal Nayyar, Head of Finance ext 7526, e-mail: [email protected]

1 Summary

1.1 This report proposes the capital programme for 2006/07 to 2009/10 (shown as Appendix 1). It deals with allocating the amounts available under the capital guidelines. It does not consider the requirements for substantial capital spend on IT and older persons' building issues, which will need to be funded separately, primarily through capital receipts and will be the subject of a separate report in due course.

2 Introduction

2.1 The following guideline limits were set by Cabinet at its meeting on 19 December 2005 for the locally resourced programme for Adult Services.

		£000
	2006/07	656
	2007/08	656
	2008/09	656
	2009/10	656

2.2 The guidelines include an addition of 2.5% for inflation, in line with the non-pay inflation assumption for the revenue budget.

2.3 Executive members have been requested to identify how cashable efficiency savings of up to 1.25% are being achieved. The target for savings relating to this service's locally resourced capital programme are:

	£000
2006/07	8
2007/08	8
2008/09	8
2009/10	8

2.4 Executive members may vary the guidelines between years provided their total four-year guideline is not exceeded and bunching of payments in any one year or front-loading is avoided.

2.5 Executive members may propose supplementing their capital guidelines under the `prudential framework' agreed by Cabinet at its meeting on 24 November 2003, thereby integrating more closely decisions on revenue and capital spending in support of Corporate Aims. The additions may include:

· virement from the executive member's revenue budget

· temporary unsupported borrowing, to provide bridging finance in advance of capital receipts or other contributions, with the cost of servicing the unsupported borrowing in the interim being met from the executive member's revenue budget.

2.6 In addition, executive members may propose additional schemes funded from:

· use of executive member's share of capital receipts obtained in 2004/05 as allocated by the Cabinet in June 2005 (if not already used for the 2005/06 programme)

· anticipating their share of capital receipts obtained in 2005/06 provided the receipt has actually been received.

3 Capital programme 2006/07 to 2009/10 - locally resourced schemes

3.1 The Adult Services underlying annual capital cash limit is £656,000. £82,000 the of this is specifically made available by the Cabinet to aid the development of the supported housing programme. The remainder of the programme consists principally of funding schemes within local resources consists of `block' allocation at the minimum level necessary to deal with the most urgent Health and Safety and other statutory requirements.

3.2 Other major schemes will have to be financed by other means such as Policy and Resources Built Estate programme, use of capital receipts, joint working with Health , credit approvals linked to the Public Service Agreements, Private Finance Iniatives or the new prudential framework referred to above.

4 Capital programme 2006/07 to 2009/10 - schemes supported by Government approvals

4.1 Two schemes will be supported by government approvals for 2006/07 they are: Information management (£376,000) which links to Aim 5 of the Corporate Strategy of `Improving Services' and Mental Health Supported Capital Expenditure which links to Aim 1 `Maximising Life opportunities'. The support for both of these schemes continues into 2007/08.

5 Private finance initiative schemes

5.1 Discussions have taken place with regard to the possibilities of schemes suitable for PFI projects. No schemes have been identified at this stage.

5.2 Reports will be brought to the Executive member for Adult Services and to the Adult Social Care Policy Review Committee if any scheme is proposed.

6 Capital Programme Summary

6.1 On the basis of the position outlined above, the total value of the capital programmes submitted for consideration for the four years to 2009/10 are:

7 Revenue Implications

7.1 The revenue implications of the proposed capital programme are as follows:

8 Recommendation

The recommendations are included in the covering decision sheet.

Section 100 D - Local Government Act 1972 - background papers

The following documents disclose facts or matters on which this report, or an important part of it, is based and has been relied upon to a material extent in the preparation of this report.

NB the list excludes:

1. Published works.

2. Documents which disclose exempt or confidential information as defined in the Act.

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