Purpose

The CIPFA Prudential Code for Capital Finance
and the Treasury Management code require all local authorities to
prepare a Capital Strategy. It puts a regulatory framework around
capital decisions and sets out how the Council will manage the
investment and financing of capital resources in support of the
Corporate Strategy.

Sitting under the Capital Strategy is the Treasury Management
Strategy which sets the limits and method of investing the
council’s surplus funds taking into account the statutory
restrictions on local authority investments and borrowings. This
report also set limits and establish procedures for any borrowings
that may be required.

Content

RESOLVED

That the Full Council be
recommended to approve the Capital Strategy 2026-2027 as detailed
in
Appendix A of report FIN724.

Reasons for the
Recommendations

The Capital Strategy 2026-27 (the Strategy)
sets out how the Council will determine capital spend and use
capital resources to achieve Corporate Objectives and support
service delivery. It forms an essential part of the Council’s
integrated revenue, capital and balance sheet planning. This
includes the appraisal process for determining investment decisions
and the process for identifying and prioritising funding
requirements.

The Strategy is based on the Chartered
Institute of Public Finance and Accountancy (CIPFA) Prudential Code
for Capital Finance and Treasury Management Code.

The Strategy follows the current approved
strategy with the following amendments:

·      
Asset Disposal - reference added to the Asset Disposal Strategy
developed as a separate and specific strategy
·      
Any assets identified through the asset verification exercise
undertaken for statutory accounts will be treated as a disposal for
accounting purposes (this is an accounting entry which does not
generate a receipt).

The detailed Strategy is attached at
Appendix A.