Archived decisions

Hampshire County Council

Executive Member - Environment

22 January 2008

Environment and Transportation Select Committee

22 January 2008

Proposed Capital Programme 2008/09 to 2010/11

Report of the Director of Environment and County Treasurer

Item 3

Item 7

Contact: Alan Giles, tel 01962 857810 email: [email protected]

1. Summary

1.1 This report presents a recommended capital programme for 2008/09 to 2010/11 (Appendix 1).

1.2 The need for the changes has arisen from a Cabinet decision in December not to take up all of the borrowing allocation for 2007/08 to 2010/11 for integrated transport and structural maintenance. The impact on the integrated transport programme was confined to 2007/08 when the programme was prepared a year ago on the assumption that the link to supported borrowing would be reinstated. This has not been the case, so for future years 2008/09 to 2010/11 the size of the programme will need to be reduced considerably in order to stay within the borrowing limits.

1.3 A reduction in structural maintenance funding arises because of a switch in the settlement from grant to borrowing. This report considers options for protecting the level of structural maintenance spending.

1.4 The Environment capital programme supports the County Council's corporate priorities as indicated in the detailed capital programme attached as Appendix 1.

2. Recommendations

2.1 That Cabinet be asked to consider whether additional unsupported borrowing beyond the Environment capital guideline should be undertaken in order to mitigate the impact on the integrated transport programme, up to a maximum of £14.015 million over 2008/09-2010/11, in accordance with the Local Transport Plan settlement for these years.

2.2 That the non take-up of supported borrowing for structural highway maintenance from 2008/09 to 2009/10, due to a switch from Government grant to unsupported borrowing, be offset by utilising a combination of efficiencies arising from the new highways term maintenance contract, and a reduction of the locally resourced environmental improvements and waste recycling centres capital programmes, to support additional borrowing of £7.1 million, under the prudential borrowing code, with annual financing costs of £0.71 million, in order to maintain the level of spending on maintenance in real terms.

2.3 That the provisional capital programme for 2008/09 to 2010/11, as set out in the report, which assumes no increase in borrowing for integrated transport, be approved for submission to Cabinet.

3. Overview

3.1 The Environment capital programme is mostly funded through the Local Transport Plan (LTP) settlement in the form of supported borrowing and grants. The LTP funding covers integrated transport schemes (tackling safety, congestion, access and environmental problems) and structural maintenance of roads and bridges. In addition, there is substantial external funding (EF) through developers' contributions.

3.2 Most of the rest of the Environment capital programme is funded from local resources within limits set by the Cabinet. These programmes include a further allocation for highway maintenance, as well as funding for environmental improvements, urban regeneration schemes and waste management (household waste recycling centres and facilities management). In some cases there is also additional funding from external sources, such as district councils, parish councils, developer contributions or grants from the South East England Development Agency (SEEDA) or other bodies.

3.3 The guidelines set for the Environment Department are insufficient to meet the existing integrated transport capital programme and current level of highway maintenance expenditure. The shortfall comprises two elements:

      · The non take-up of some £5 million per year of supported borrowing when setting the 2007/08 integrated transport capital programme. Under current guidelines this equates to a further £14 million in the capital programme 2008/09 to 2010/11.

      · The non take-up of £5.4 million of supported borrowing for highway maintenance for 2008/09, with a further £5.1 million in 2009/10 and £1.2 million in 2010/11.

    Integrated Transport

3.4 There are two alternative approaches to dealing with the shortfall in resources. The first is to stay within the issued guidelines by cutting £12.840 million over three years from the existing starts programme. This could be achieved by means of deferring a number of schemes and adjusting the value of others. This would enable the programme to remain within the approved spending limits for the next three years. The second approach is to take up the full LTP allocation, which would need to be funded outside the guideline from the additional grant received by the Council in the formula grant settlement, which will cost approximately £0.5 million extra each year (ie £1.5 million by 2010/11). The first approach is more affordable, but the choices to be made in terms of which schemes to defer are stark. Appendix 3a shows the new proposed capital programme for 2008/09-2010/11 with those schemes recommended for adjustment or deferral indicated. A brief explanation of the schemes recommended for deferral are set out in paragraphs 5.5, 5.6 and 5.7. Appendix 3b shows the historic programme.

    Highways Maintenance

3.5 Cabinet has expressed the view that it is not acceptable to cut structural highway maintenance in real terms below the existing £29.0 million spend level. Again, there are two alternative approaches to dealing with the shortfall in resources. One option is for the Council to fund the necessary borrowing from the additional formula grant (at a cost of approximately £0.5 million ongoing for 2008/09 and a further £0.5 million ongoing for 2009/10), outside the Department's cash limit. Another option is to fund the ongoing debt charges from revenue resources within the Environment Department by cutting other programmes or activities under the prudential borrowing code. Immediate options include utilising some of the £0.680 million efficiencies arising from the Term Highways Contract tendering process, reducing locally resourced capital expenditure for waste management (say £0.3 million) and ROUA (say £0.2 million), and/or cutting the Quality of Place programme (still within the highway maintenance base budget for 2008/09 at £0.6 million).

3.6 This report contains the proposed revised programme for 2008/09 to 2010/11 for both the LTP and locally funded schemes.

4. Resources

      Local Transport Plan (supported borrowing and grant)

4.1 On 27 November 2007 the Government Office for the South East provided the County Council with details of the local transport capital settlement for the three years 2008/09 to 2010/11.

4.2 The total block allocations for the County Council are £30.351 million for 2008/09, £32.019 million for 2009/10 and £34.748 million for 2010/11. These sums comprise £13.441 million, £13.418 million and £13.356 million for integrated transport and £16.910 million, £18.601 million and £21.392 million for maintenance. All of the maintenance allocations and two-thirds of the integrated transport allocations are now being provided as supported borrowing paid within the formula grant settlement, with only one-third of the integrated transport allocation being paid as direct capital grant. Additional one-off specific grant funding in the amount of £250,000 has also been provided for specific maintenance works at A33 Long Bridge in 2008/09.

4.3 Although the overall totals for the block allocations show increases compared to the transport settlement figure of £29.646 million in 2007/08, the level of grant support within the total has reduced significantly compared to 2007/08, when a grant of £9.694 million was received. Overall, there is a total loss of grant funding of approximately £14.3 million during the new three year capital programme period, compared with the assumed level of grant support when the current 2007/08 to 2010/11 programme was prepared in January 2007.

4.4 The letter also confirmed a specific road safety grant allocation totalling £2.745 million for 2008/09, over and above the main LTP settlement of £30.351 million, with similar sums being provided for 2009/10 and 2010/11. Safety cameras and their funding had previously been integrated into the LTP system in 2006, alongside other road safety measures towards which the Department for Transport is providing additional funding. Local authorities are able to use this grant to support whichever mix of road safety measures will make the greatest contribution to reducing road casualties. Analysis of the casualty statistics has indicated a sharp upturn in the number of killed and seriously injured casualties since April 2007. Should this trend continue next year there is a likelihood that the PSA2 stretch target will be missed. It is therefore important to maintain investment in this area and analysis of the statistics will seek to focus on the cause of this emerging trend.

4.5 Of the £2.7 million road safety grant, some £1.6 million may be needed to support the Safer Roads Partnership, leaving £1.1 million available to support road safety capital schemes (or other capital or revenue projects) in 2008/09. This sustains the level of grant at 2007/08 values, used to support our capital programme. However, the Safer Roads Partnership has yet to set its budget for 2008/09 and so these figures remain indicative only at this stage.

4.6 In common with a number of other counties on the revenue support grant floor, the County Council is no longer taking up all of its approved borrowing allocations for capital expenditure, as there is no additional Government support towards its deemed borrowing allocation through the formula grant system. This means that the Government's decision to allocate more resources as supported borrowing and less as grant, effectively amounts to a significant cut in funding for the County Council. Consequently the Environment service's published capital programme guidelines for supported borrowing show a total reduction of £10.2 million in 2008/09, £9.8 million in 2009/10 and £5.8 million in 2010/11 compared to the notional amounts included in the local transport settlement.

4.7 The current capital guidelines for the next three years for expenditure being supported from Government grants and supported borrowing approvals are as follows:

            £'000

        2008/09 21,553

        2009/10 23,388

        2010/11 30,093

4.8 Proposals for the new three year LTP capital programmes for integrated transport for the 2008/09 to 2010/11 period, set out in this report, have been prepared in accordance with the above guidelines, with options on which schemes could be considered for deferral to stay within these guidelines, or for which additional borrowing above the guideline could be utilised. The structural maintenance programme for the same period is protected at its current level, but this is above the guideline. However, options have been put forward to fund the difference, either from within the Environment Department or from corporately supported borrowing.

      Developer Contributions (external funding)

4.9 The Environment Department receives contributions from developers towards the cost of highway infrastructure needs associated with the proposed developments. These are held until appropriate capital schemes can be developed. At 1 April 2007 the Department held £31.4 million of developer contributions of which £7.5 million is anticipated to be spent in 2007/08 (with a starts programme of £12.1 million). A further £8.1 million is planned to be spent in 2008/09 (with starts of £7.4 million), although the precise figure will vary as schemes are developed and new contributions are received each year.

      Local Resources

4.10 Capital guideline figures were set by Cabinet at its meeting on 17 December 2007 for the locally-resourced programme for the Environment Department. Technical adjustments are made to these guidelines to reflect the latest winter maintenance costs and major schemes preparation work. The adjusted guideline figures are:

            £'000

        2008/09 14,684

        2009/10 15,058

        2010/11 14,963

4.11 The guidelines have been adjusted to reflect a 2.5% increase for inflation in 2009/10 and 2010/11 to make the allocations consistent with the LTP settlement which is on a cash basis. This is in line with the non-pay inflation assumption for the revenue budget, and is added to the guidelines prior to the start of the relevant financial year.

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

4.13 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:

      (i) virement from the Executive Member's revenue budget; and

        (ii) 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.

4.14 In addition, Executive Members may also propose schemes funded from:

        (i) use of Executive Member's share of capital receipts obtained in 2006/07 as allocated by the Cabinet in June 2007 (if not already used for the 2007/08 programme); and

        (ii) anticipating their share of capital receipts obtained in 2007/08 provided the receipt has actually been received.

4.15 Adjustments totalling £585,000 to the local capital provision for highways maintenance are required to cover the transfers to the revenue budget in respect of the development of future major schemes (see paragraph 5.13), and to cover base budget variations for higher routine highways maintenance inflation during 2007/08 and increased provision for winter maintenance.

4.16 It is proposed that the sum of £376,000 being this service's 25% share of 2006/07 capital receipts be allocated to structural maintenance.

4.17 The following table sets out the proposed locally funded programme for 2008/09, taking into account the above adjustments:

                £'000

      Structural maintenance of non principal roads 12,491

      Environmental improvements 1,053

      Waste facilities management 66

      Household waste recycling centres 1,074

      Total 14,684

5. Integrated Transport Programme 2008/09-2010/2011

      LTP Funded Programme

5.1 The resources currently available for the capital programme, for the three years of 2008/09-2010/11, are insufficient to fund all of the schemes that were originally proposed in 2007. It should be noted that even if all of the borrowing approvals were taken up, the overall spends value of the total capital programme for the four years 2007/08-2010/11 would still exceed the resources available due to the retention of schemes in the programme last year, awaiting the outcome of lobbying Government on restoring the supported borrowing link, together with a certain level of historic over-programming to ensure no annual credit approvals were lost as a result of scheme slippage.

5.2 This section contains proposals for rescheduling beyond 2010/11 or changing the scope of integrated transport schemes for 2008/09-2010/11 to remain within the Cabinet's capital guidelines. However, some schemes could be reinstated if additional borrowing allocations are agreed by Cabinet and Council in February.

5.3 Appendix 1 contains the revised proposed capital programme for 2008/09-2010/11. All of the schemes remaining in the programme have been reviewed and, where necessary, their scope adjusted to reflect factors such as:

      (i) well advanced stage of scheme development;

      (ii) contribution to LTP targets;

      (iii) LTP spend will free up developer funding; and

      (iv) likelihood of scheme completing in that year.

5.4 In some cases (Minor Schemes and Traffic Management) the allocation is recommended for increase, in order to provide some compensation to local communities and Members for other scheme deferrals.

5.5 Schemes recommended for deferral from 2008/09 year are:

      Schemes Starts Value and Reason

            Quality Bus Partnerships £0.6 million. A significant amount of investment in QBPs has taken place over the past five years and the highest impact schemes implemented. This is a proposed deferral for one year, to 2009/10, when the programme resumes.

            South Winchester Park & Ride £6.1 million. Archaeological investigations will still take place in 2008/09. The construction phase, which was planned to start in 2009/10, accounts for £4.6 million of this expenditure. The start of this phase would need to move beyond 2010/11, unless alternative funding sources can be identified, such as windfall regional funding, contributions from external beneficiaries, or additional borrowing is funded through the budget process. Planning permission expires in July 2010 and therefore a start on site is highly desirable before that date.

            Access and Air Quality £200,000. This proposal only exists as an aspiration with no clear scheme yet identified.

            Newgate Lane, Fareham £1.5 million. Part of the larger Access to Gosport proposals. Around half of the £4 million originally programmed within the LTP would be spent by 2010/11. Work is advancing on a bus rapid transit scheme which would serve the abandoned tram scheme route, which it is anticipated will be supported through regional funding or other Government funding streams.

5.6 Schemes recommended for deferral from 2009/10 year are:

      Schemes Value and Reason

            Pedestrian Crossings £150,000. This is to allow the demand for these to be considered against other traffic management schemes.

            Other Access Schemes £2.1 million. This relates to Town Centre Access Plans. Details of the schemes are not yet developed.

            Brookvale Basingstoke £50,000. This is an urban regeneration scheme (ROUA) which will continue at a slightly reduced scale without LTP funding.

            South Winchester P&R Bus Priority £1 million. Complements car park construction.

            Community Safety Initiative £60,000. Match funding for local street lighting proposals which has been underspent in recent years.

            Archers Road Footbridge, Eastleigh £1.5 million. The bridge remains safe to use and the access improvements this would achieve could be deferred.

5.7 Schemes recommended for deferral from 2010/11 year are:

      Schemes Value and Reason

            Access to Hamble/AQMA £200,000. No firm proposals have yet been developed. Could be deferred.

5.8 Scope for reducing or deferring other schemes

      The report to Executive Member for Environment (Revised 2007/08 Capital Programme) contains details of the changes to the 2007/08 programme. A number of schemes have been delayed from the 2007/08 programme and will be completed in 2008/09. There is some scope to adjust the spend on some other schemes programmed for 2008/09 to 2010/11.

5.9 Appendices 3a and 3b contain a comprehensive list of the current integrated transport programme from 2007/08 to 2010/11 and highlight those schemes recommended for deferral and major changes in scheme value or spending profile. The figure in the `Budgets, Total £' column contains the total value of the scheme (starts value), including any previous expenditure. The figures in the `LTP Spend Profile, 2008-2011' contain the actual LTP spend anticipated or proposed for that year, similarly for the contributions in the next columns. Note that the sum of the LTP and contributions funding over 2008-2011 may be less than the total Starts Value, due to spends in previous years or expected in later years (ie after 2010/11).

      Developer Funded Programme

5.10 Schemes wholly or partly funded by developers' or other contributions are included in the programme. The programme totals £7.4 million in 2008/09. Schemes have only been named where there is reasonable confidence on funding security and programme dates. The exercise to accelerate the use of developers' contributions is progressing well and additional schemes will be added to the programme as appropriate.

      Major Schemes

5.11 A number of major schemes are being prepared for possible bids for Government funding, including Chickenhall Lane Link Road, Eastleigh and Access to Gosport.

5.12 The A3 Bus Priority Corridor scheme, which was accepted as a major scheme by the Government on 28 October 2003, will be substantially complete by the end of 2007/08. A bid for funding to cover residual costs of the scheme in 2008/09 has been submitted, the result of which is still awaited.

5.13 Proposals are included in the report on the Revenue Budget 2008/09, 2009/10 and 2010/11, elsewhere on this agenda, for a contribution of £1 million, spread over the next three years, towards the development of future major schemes. Technical adjustments to the locally resourced capital programme are included to enable the sum of £300,000 per annum, rising to £400,000 in 2010/11, to be transferred to the revenue budget to support feasibility and early design work for major schemes, which if successful would be capitalised.

      Asset Management

5.14 Guidance from Government for the 2006-2010 LTP stipulated a requirement for the development of a Transport Asset Management Plan to support the LTP. The preparation and implementation of this plan will affect LTP and Corporate Assessment scoring in the future.

5.15 A Transport Asset Management Plan was therefore produced and issued with LTP2 in April 2006. This is primarily a document that identifies the development work that needs to be done in order to create an asset management approach within the Environment Department. This work is proceeding well and Hampshire is recognised as one of the leading authorities in the country with regard to asset management development.

6. Highway Maintenance and Bridge Programme 2008/09

      Overview

6.1 Highway maintenance is funded from two basic sources, revenue and capital, although the capital programme element is funded from both the LTP (borrowing and grant) and local resources (revenue contributions to capital). The current total level of spend, with a 2.5% inflation allowance for 2008/09, is £55.556 million. This is summarised below, and further broken down into spend types in Appendix 2.

              £m

        Revenue programme 26.596

        Capital programme 28.960

              55.556

6.2 To maintain capital spending of £28.960 million in real terms, a further £4.025 million of spend is needed above the guideline in 2008/09 and £3.064 million in 2009/10. Due to a switch to grant funding in other departments in 2010/11, there is no shortfall in that year. It may be possible to borrow some of the additional guidelines for 2010/11 early (ie in 2009/10). The following table sets out the position.

    2008/09

    2009/10

    2010/11

    £000

    £000

    £000

    Spend needed to maintain assumed current levels

    28,960

    29,684

    30,426

    Less assumed locally resourced

    -12,115

    -12,433

    -12,658

    Less share of 2006/07 capital receipts

    -376

    -

    -

    Less borrowing guideline

    -11,494

    -13,487

    -20,183

    Transfers for transport studies

    -700

    -700

    -800

    Less LTP grant

    -250

    -

    -

     

     

     

    Balance needed to maintain current assessed spend

    4,025

    3,064

    -

    Additional spend available in 2010/11

    -

    -

    3,215

6.3 The shortfall in funding could be funded in a number of ways:

        - Additional corporately supported borrowing

        - Bringing the headroom in supported borrowing from 2010/11 into 2008/09 or 2009/10.

        - Finding up to £0.403 million in 2008/09 and up to a further £0.307 million in 2009/10 of ongoing revenue resources from within the Environment Department, to finance additional borrowing under the prudential code.

6.4 There are a number of options which could release ongoing revenue resources to fund up to £0.710 million of debt charges (on a total of £7.089 million of spend). These could be taken individually or in combination and in part or in total up to the appropriate level.

        - 2% efficiencies identified during the Term Highways Contract tendering process (up to £0.680 million - all within the capital workstream of the contract)

        - Permanent reduction to HWRC locally resourced capital programme (up to £0.300 million)

        - Permanent reduction to locally resourced environment capital programmes (say £0.200 million ROUA)

        - Non-continuation of the Quality of Place programme (notionally funded from locally resourced highway maintenance) (up to £0.600 million)

6.5 The proposed 2010/11 capital programme allocation for highways structural maintenance currently makes allowance for the higher borrowing guideline of £3.2 million available in that year, although the actual use of this additional resource will need to be reviewed nearer the time. This would need to take into account other competing priorities for expenditure in that year including the integrated transport programme.

      Revenue Funded Programme

6.6 Whilst outside the scope of a capital programme report, the revenue funded programme of £26.596 million is vital context to decisions on the capital funded programme. All street lighting expenditure, including column replacement, is funded from within this budget. Current anticipated increases in street lighting energy costs (£0.3 million), the forecast shortfall on the street lighting PFI annual payment for investment and maintenance (£0.6 million) and future energy increases of up to £1.2 million may need to be absorbed within the highway maintenance revenue and capital budgets over a period of five years.

      Capital Funded Programme

6.7 A standstill capital programme for structural maintenance for 2008/09 has been set at £28.960 million, comprising £25.215 million for highway maintenance and £3.745 million for bridges. Of this, £12.115 million is from local resources, £0.376 million from capital receipts added to local resources, and £12,194 million from borrowing guidelines. A further £4.025 million will be funded from borrowing financed by the Environment Department's revenue budget. Apart from this, the programme is in line with the existing provision in the current three year capital programme, having been increased by £0.3 million per annum to reflect the technical transfer from the locally resourced capital programme to fund some major scheme preparation costs from the revenue budget (there has been a corresponding reduction to locally resourced maintenance).

6.8 The 2008/09 programme also includes a sum of £0.250 million for maintenance works at A33 Long Bridge for which there is a specific capital grant. A need for major works at the old A35 Holmsley bridge (over the C10, formerly a railway) has recently been identified. Initial estimates are of the order of £2 million and further feasibility work will be carried out. The earliest date for works is likely to be 2010/11. Further details of the proposed highways maintenance programme for 2008/09 will be presented to the Executive Member for Environment in March 2008.

7. Other Locally Resourced Capital Programmes 2008/09 to 2010/11

      Environmental Improvements

7.1 This programme comprises the Regeneration of Older Urban Areas Initiatives (ROUAi), the Country Towns Initiative and the Hampshire Villages Initiative. Each initiative is unique in the way schemes are initiated, developed and delivered but all share the common aim of environmental enhancement, partnership working and sustainable development. The new starts allocation for 2008/09 is £1.053 million, although this may need to be reduced to fund the financing costs for highways maintenance prudential borrowing.

7.2 The 2009/10 provision for environmental improvements includes an additional sum of £0.377 million which has been carried forward from underspendings arising from completed ROUAi schemes included in previous years' capital programmes.

      Waste Management

7.3 Waste management capital spend covers two areas:

                      £000

        - Facilities management at landfill sites 66

        - Household Waste Recycling Centres 1,074

                      1,140

7.4 The Household Waste Recycling Centre network continues to be a popular frontline public service. These sites receive 4.5 million visitors a year, depositing 250,000 tonnes of waste and achieving an average recycling rate over 60%. During 2008 a new HWRC will be constructed at Andover to replace the smaller existing facility and work will continue on feasibility studies for improving HWRCs across the network, particularly redevelopment proposals for Casbrook, Gosport and Hartley Wintney, pending the level of resources finally allocated in 2008/09, which may need to be reduced to fund the financing costs for highways maintenance prudential borrowing.

8. Capital Programme Summary

8.1 On the basis of the position outlined above, the total funding available in support of the capital programmes submitted for consideration for the three years to 2010/11 is:

    Schemes funded from:

    2008/09

    £000

    2009/10

    £000

    2010/11

    £000

    - Local resources

    14,684

    15,058

    14,977

    - Government approvals

    21,553

    23,388

    30,093

    - Prudential borrowing

    4,025

    3,064

    -

    40,262

    41,510

    45,070

    - Developer contributions

    7,417

    5,050

    10,300

    - Request for extra borrowing

    4,772

    4,657

    4,586

    Total funding

    52,451

    51,217

    59,956

8.2 The following table summarises the proposed 2008/09 capital programme over the main categories of expenditure:

                £'000

      Structural maintenance of roads and bridges 28,960

      Integrated transport schemes 12,305

      Environmental improvements 1,053

      Waste management 1,140

      Total 43,458

      Note: the above figures include developers' contributions but exclude the costs of land for programme schemes which are dealt with outside the guidelines. They also exclude integrated transport schemes in excess of the guideline pending a decision by Cabinet on whether to take up the full LTP supported borrowing allocation, and payments on earlier years' integrated transport starts programmes.

9. Revenue Implications

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

              Full Year Cost

            Current Capital

            Expenditure Charges

            £'000 £'000

      Schemes within the guidelines

      2008/09 9 313

      2009/10 12 329

      2010/11 9 319

      Additional schemes under prudential framework

      2008/09 0 124

      2009/10 0 94

      2010/11 0 0

      Schemes supported by Government allocations

      2008/09 172 929

      2009/10 203 1,092

      2010/11 266 1,436

      Total 671 4,636

      The revenue implications of the 2010/11 programme assumes spending the borrowing guideline on structural maintenance at £3.215 million above current levels in real terms.

9.2 The total revenue implications for the three years of the starts programme, including capital charges, represent a real-term increase of 3.9 % over the 2007/08 original budget of this service.

9.3 Should additional unsupported borrowing beyond the Environment capital guideline of £14.015 million over 2008/09 to 2010/11 within the integrated transport programme, in accordance with the LTP settlement, be undertaken, further revenue implications estimated to be in the region of £0.75 million in a full year would follow.

10. Impact Assessments

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

11. Conclusion

11.1 This report complies with Cabinet's request to prepare proposals for a three year capital programme for 2008/09 to 2010/11 locally resourced and supported by Government grants and approvals.

LINK(S) TO CORPORATE STRATEGY

Yes

No

Hampshire safer and more secure for all

√

Maximising well-being

√

Enhancing our quality of place

√

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.

TITLE

LOCATION

None

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