Contact: Jon Pittam, (01962 847400), [email protected]

Rea Mattocks, (01962 847200), [email protected]

Adrian Thorne, (01962) 847526, [email protected]

1 Summary

1.1 The following decisions are sought:

1 That the capital programme for 2007/08 to 2010/11 as set out in Appendix 1 be approved for submission to the Cabinet

2 Reasons

2.1 Cabinet has requested that executive members prepare proposals for:

· a locally-resourced capital programme for the four-year period from 2007/08 to 2010/11 within the guidelines of the current capital programme adjusted for inflation

· capital schemes supported by Government grants or supported borrowing in 2007/08 and those expected to be supported in 2008/09, 2009/10 and 2010/11, subject to limits restricting the take-up of Government supported borrowing allocations.

2.2 Decisions on the capital programme will support the County Council's corporate priorities, as indicated in the detailed capital programme attached at Appendix 1.

3 Other options considered and rejected - none

4 Conflicts of interest declared by the decision maker or other executive member consulted

None

5 Dispensation granted by the Standards Committee

None

6 Reasons for the matter being dealt with if urgent

Not applicable

Approved by: Date:

Councillor Patricia Banks

Executive Member for Adult Social Care

Contact: Jon Pittam, (01962 847400), [email protected]

Rea Mattocks, (01962 847200), [email protected]

Adrian Thorne, (01962) 847526, [email protected]

1 Summary

1.1 This report proposes the capital programme for 2007/08 to 2010/11 (shown as Appendix 1).

1.2 Decisions on the capital programme will support the County Council's corporate priorities, as indicated in the detailed capital programme attached at Appendix 1.

2 Locally resourced capital programme

2.1 The following guideline limits were confirmed by Cabinet at its meeting on 18 December 2006 for the locally resourced programme for Adult Services.

		£000
	2007/08	2,161
	2008/09	2,266
	2009/10	1,012
	2010/11	666

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 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.

2.4 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 priorities. 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 or existing capital resources in the years in which cost is incurred.

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

· use of executive member's share of capital receipts obtained in 2005/06 as allocated by the Cabinet in June 2006 (if not already used for the 2005/06 programme)

· anticipating their share of capital receipts obtained in 2006/07 provided the receipt has actually been received

3 Proposed capital programme 2007/08 to 2010/11 - locally resourced schemes

3.1 The Adult Services capital programme for locally resourced schemes is principally in accordance with, and continues to prioritise, those elements reported to Cabinet in July 2006 including the following:

· A minimum future programme to cover statutory requirements for fire and health and safety on Adult Services' buildings,

· Various IT systems and projects needed to meet government requirements and targets and

· Other smaller amounts in relation to inescapable demand factors (such as the community equipment stock) or extra care housing (which is financially advantageous in the longer term).

3.2 The detailed programme is shown in Appendix 1 and expenditure for 2007/08 is summarised in the table below:

3.3 These schemes link to the Corporate Strategy of maximising well being through the continuation of the programmes for investment in Adult Services' establishments: to maintain standards, to improve information management, and to introduce extra care housing.

3.4 At present no capital receipts have been received in 2006/07 that can be used to fund additional schemes as described in paragraph 2.5. However, as part of the overall modernisation programme of Adult Services, capital receipts are likely to be received from the disposal of surplus properties and approval will be sought to use these receipts when finally received to support the Adult Services' capital programme.

4 Proposed capital programme 2007/08 to 2010/11 - schemes supported by Government allocations

4.1 Cabinet agreed on 25 September 2006 to extend the restrictions on the use of Government supported borrowing allocations from 2007/08 to the remaining three years of the proposed capital programme. This decision was taken because the mechanism within the revenue grant system which previously provided funding for the marginal cost of additional supported borrowing has not been restored by the Government for 2007/08. Cabinet set the following provisional limits for the use of supported borrowing for Adult Services.

		£000
	2007/08	241
	2008/09	0
	2009/10	0
	2010/11	0

4.2 Schemes funded by capital grants from the Government may be added to the above limits. The anticipated capital grants for each of the four years of the programme are summarised below.

		£000
	2007/08	1,737
	2008/09	0
	2009/10	0
	2010/11	0

4.3 The supported borrowing of £241,000 relates to ongoing Government support for mental health capital expenditure in relation to responsibilities under the mental health national service framework. This expenditure is linked to the Corporate Strategy of maximising well being.

4.4 Adult Services will also receive two capital grants to the value of £1,737,000 in 2007/08.

4.5 A grant of £367,000 is for the improvement or acquisition of systems for improving information management. A business case for an electronic social care record system is in the process of being developed and it is intended that this is to be funded from this grant in 2007/08 and locally resourced funding in 2008/09. This will be subject to obtaining the appropriate approval for the business case once finalised. This expenditure is linked to the Corporate Strategy of maximising well being.

4.6 A grant of £1,370,000 is for improving the care home environment for older people. This is a one off grant and arrangements for utilising this grant need to be developed with partners in health, social care, the voluntary and independent sectors. These arrangements will need to ensure that grant conditions are fulfilled but also need to ensure that the corporate priorities in relation to the extra care housing programme receive the appropriate level of funding either directly or indirectly.

5 Capital programme summary

5.1 On the basis of the position outlined above, the total value of the capital programmes submitted for consideration for the four years to 2010/11 are:

6 Revenue Implications

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

6.2 The total revenue implications for the four years of the starts programme, including capital charges, represent a real term increase of 0.3% over the 2006/07 original budget of this service.

6.3 These figures exclude any revenue impact from the grant for improving the care home environment for older people. This impact will depend on the nature of the expenditure plans that are finally agreed with the relevant partners. The figure also excludes any revenue implications for the electronic social care record system. These will depend on the optimum solution selected and is also likely to generate revenue savings in other areas which will be fully quantified in the business case.

6.4 Part of the current expenditure costs, £149,000, will be incurred in 2007/08. These costs will be met from within the budget limit set for the service's revenue budget.

7 Impact assessment

7.1 The proposals in this report are derived from the departmental service plans and are in accordance with the budget strategy and the County Council's financial management policy. An impact assessment of the financial management policy has been carried out and the proposals in this report are not considered to be discriminatory.

Recommendations

1 That the capital programme for 2007/08 to 2010/11 as set out in Appendix 1 be approved for submission to the Cabinet

.

Section 100 D - Local Government Act 1972 - background documents

The following documents discuss facts or matters on which this report, or an important part of it, is based and have 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.

TITLE FILE

Financial Management Policy Impact Assessment

http://intranet.hants.gov.uk/ctequalities/ctequalitiesimpactassessment.htm

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