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 2008/09 to 2010/11, based on the guidelines agreed by Cabinet on 17 December 2007 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 were made, based on the recommendations of the Leader and Cabinet to the County Council, for the capital programme for 2008/09 to 2010/11:

1 That the possible need to use prudential borrowing of £4.8m in 2009/10 and £0.7m in 2010/11 to meet the temporary shortfalls of resources, to be repaid from forecast surplus capital resources in 2011/12, be noted and reassessed when the capital programme is next reviewed (paragraph 2.2 of the main report)

2 That Children's Services schemes and resources totalling £13.0m be deferred from the 2007/08 capital programme to 2008/09 (paragraph 7.2)

3 That the take-up by Children's Services of the Government's allocations for the Primary Capital Programme over the three-year period of 2008/09 and 2010/11 be subject to a further report to Cabinet when the Government has decided whether its support will be in the form of capital grants, borrowing allocations or the private finance initiative (paragraph 7.10)

4 That additions to the Children's Services capital programme for 2008/09 to 2010/11 financed by prudential borrowing of up to £25.7m, including £10.4m for 2008/09, be approved in principle, subject to further reports to the Executive Member for Policy and Resources on specific proposals (paragraph 7.17)

5 That the proposal to increase the Environment capital programme for structural maintenance by £7.1m (£4.0m in 2008/09 and £3.1m in 2009/10), financed by additional prudential borrowing with the resulting loan charges met from the Environment revenue budget, be approved (paragraph 8.2)

6 That the Environment capital programme for 2009/10 be increased to incorporate Winchester Park and Ride and associated bus priority works at a cost of £7.1m, requiring additional borrowing of £6.8m after allowing for advance works already programmed and the use of external contributions. Schemes to the value of £6.4m will be deferred as set out in table 16 of the report, representing the balance of borrowing allocations which the County Council is unable to afford from unsupported or prudential borrowing.

7 Additional borrowing of £4.4m for schools' projects (Children's Services £3.0m and Policy and Resources £1.4m) spread over 2008/09 and 2009/10, was approved

8 That Policy and Resources capital programme for 2008/09 be increased by £1m for IT Services hardware replacement and investment to facilitate the migration of the data centre to Ashburton Court, improvements to the Hantsnet infrastructure and to provide additional data storage capacity, to be repaid through the IT Services trading account within five years (paragraph 9.7)

9 That it be a recommendation to Council that:

a) the capital programme for 2008/09 and the provisional programmes for 2009/01 and 2010/11 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 on the responsibilities for managing the capital programme 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) 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

c) a scheme costing £3m for a potential Basingstoke Discovery Centre be added to the Policy and Resources capital programme for 2008/09, to be released to Recreation and Heritage once a detailed project appraisal, business case and funding package has been agreed by the executive members for Policy and Resources and Recreation and Heritage (paragraph 10.3)


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

(i) up to the sum specified in respect of sites still required for the schemes included in the capital programme for the period 2008/09 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

(ii) up to the amount included in the programmes for 2008/09 to 2010/11 in respect of advance and advantageous land purchases.

2 Reason

2.1 The full County Council must agree the capital programme for 2008/09 to 2010/11 at its meeting on 21 February 2008. 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 other Executive member 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