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

1 Summary

1.1 The accompanying report sets out for approval the proposed capital programme for 2007/08 to 2010/11, based on the guidelines agreed by Cabinet on 18 December 2006 and the support for capital schemes recently announced or confirmed 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 2007/08 to 2010/11:

1 That the County Council continues to lobby the Government to provide full revenue grant funding for Government supported borrowing allocations or provide its support as capital grants (paragraph 4.4)

2 That unsupported borrowing be used to meet the temporary shortfall of resources in 2006/07, estimated to be £4.864m, to be repaid from forecast surplus capital resources in 2007/08 (paragraph 2.2)

3 That Children's Services schemes and resources totalling £19.496m be deferred from the 2006/07 capital programme to 2007/08 (paragraph 7.2)

4 That additions to the Children's Services capital programme for 2007/08 to 2010/11 financed by unsupported borrowing of up to £26.438m, including £12.690m for 2007/08, be approved in principle, subject to further reports to Cabinet on specific proposals (paragraph 7.15)

5 That the inclusion in the proposed Environment capital programmes for 2008/09 to 2010/11, of schemes costing £4.444m, to be funded from additional external resources that have yet to be identified, be approved subject to those resources being found or equivalent reductions made in the programme (paragraph 8.2)

6 That the proposal to increase the provision in the Policy and Resources capital programme for 2007/08 to 2010/11 for fees on feasibility studies by £0.5m per annum be approved (paragraph 9.2)

7 That the Recreation and Heritage capital programme guideline for 2007/08 be increased by bringing forward £0.1m from the programme for 2010/11, funded in 2007/08 by unsupported borrowing (paragraph 10.1)

8 That it be a recommendation to Council that:

a) the capital programme for 2007/08 be approved as set out in Appendix 5 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 proposals by executive members to retain more than a 25% share of capital receipts

b) the remainder of the capital programmes for 2008/09 to 2010/11 be approved as set out in Appendix 5 for the purpose of undertaking design work (including the preparation of feasibility and design project appraisals)

c) 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

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

(1) up to the sum specified in respect of sites still required for the schemes included in the capital programme for the period 2007/08 to 2010/11 provided that the relevant scheme has been the subject of a feasibility or design project appraisal approved by the relevant executive member

(2) up to the amount included in the 2007/08 programme in respect of advance and advantageous land purchases.

2 Reason

2.1 The full County Council must agree the capital programme for 2007/08 to 2010/11 at its meeting on 21 February 2007. 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 County Council's corporate priorities as the capital programme provides financial resources for:

Hampshire safer and more secure for all

Maximising wellbeing

Enhancing our quality of place.

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 None.

5 Dispensation granted by the Standards Committee

5.1 None.

6 Reason for the matter being dealt with if urgent

6.1 Not applicable.

Approved by: Date:
Councillor T.K. Thornber, C.B.E - Chairman