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

Ejner Knudsen, ext 7403 email: [email protected]

1. Summary

1.1 The following decisions are sought:

(i) 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.

(ii) 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 £0.71million in order to maintain the level of spending on highways structural maintenance in real terms.

(iii) 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.

2. Reason

2.1 Cabinet has requested that Executive Members prepare proposals for:

(i) a locally resourced capital programme for the three year period from 2008/09 to 2010/11 within the guidelines of the current capital programme adjusted for inflation; and

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

2.2 Decisions on the Environment capital programme will support the County Council's corporate priorities as indicated in the summary capital programme attached at Appendix 1. A more detailed breakdown of the programme, which will be incorporated into the County Council's published Revenue Budget and Capital Programme booklet, is attached as Appendix 4.

3. Other Options Considered and Rejected

3.1 Taking no action. Not acceptable as there is insufficient funding to complete all of the proposed schemes in the programme approved in February 2007.

3.2 Decreasing the maintenance allocations in order to retain funding for integrated transport schemes. Priority should be given to adequately maintaining the highway asset before considering investment in improvements and additional, unsupported borrowing will be needed to continue the existing maintenance spend level.

3.3 Increasing the level of borrowing to reinstate the reduction in the integrated transport allocations. Cabinet will need to determine if borrowing approvals should be increased beyond the guidelines.

4. Conflicts of Interest Declared by the Decision Maker or Other Executive Member Consulted - None.

5. Dispensation granted by the Standards Committee - None.

6. Reason(s) for the Matter being dealt with if Urgent - None.

Approved by: Date:

Councillor M J Kendal

Executive Member for Environment

1551Decn/AG/EK