URL: https://democracy.rochdale.gov.uk/ieDecisionDetails.aspx?ID=2617

Decision Maker: Cabinet

Outcome: Recommendations Approved

Is Key Decision?: Yes

Is Callable In?: No

Purpose: Outlining proposed Capital Programme 2025/26 to 2029/30

Content: The Cabinet considered a report of the Director of Corporate Services which sought to update on the Council’s Capital Programme 2024/25, which was now £116.903m as described in section.   The Deputy Chief Finance Officer was in attendance to present the information and to address the questions and the comments of the Board Members.   The Senior Officer outlined the Council’s proposed Capital Programme 2025/26 to 2029/30, as a basis for consultation (Section 5.2 of the report) and  outlined to Members the risks of borrowing to finance the Capital Programme and its long term impacts on the longer term financial sustainability of the Council and Treasury Management Strategy (TMS), as discussed in section 5.3 of the report.   Some of the assumed external funding included in the programme was still subject to clarification from Government and other sources and in some cases may involve bids for funds. It was therefore recommended that all approvals were subject to confirmation of funding allocations.   Resolved: 1.    The proposed changes to the Capital Programme 2024/25, which was now £116.903m be noted; 2.    That the Capital Programme for 2025/26 of £176.652m, and provisional programmes for 2026/27 to 2029/30, as a basis for consultation, subject to confirmation of grant funding allocations, as detailed in Appendix 1 of the report be approved; 3.    That it be noted that: a.    The additional revenue cost of new capital schemes and inflation was £0.120m in 2025/26 rising to a future year full year effect of £0.491m by 2029/30; b.    A review of the phasing of the existing Capital Programme and the use of £2.4m of reserves to fund shorter life schemes had resulted in reduced revenue costs of circa £1.16m in 2025/26, with reduced savings across future years. This had resulted in a net revenue cost reduction in 2024/25 of £0.984m, in 2025/26 of £0.330m, and in 2026/27 of £0.042m after taking account of the new scheme costs; 4.    That it be agreed that where new funding was confirmed relating to schemes with a prudential borrowing implication for the Council such as Highways maintenance / pothole funding, this would be used to reduce the Councils borrowing requirement; 5.    That the next steps of the consultation process which would take place over the autumn be approved.   Reason for decision: Cabinet members were required to recommend a balanced 2025/26 Revenue Budget to Budget Council, and provisional budgets for 2026/27 to 2027/28, and the capital programme was a key element of the budget setting process and had a direct impact on revenue budgets. The Council was required to set a balanced budget for 2025/26 by 11th March 2025.   Alternatives considered and rejected: The Council was legally obliged to set a balanced budget. The budget setting process was complex and had to be undertaken in a planned way. It was equally important that assumptions used in the preparation of the budget were agreed, reasonable and consistently applied by all services.   A number of alternative elements of the Capital Programme were considered in the development of the programme, the one which was presented was of the most strategic/community value and was aligned with the Council’s priorities and therefore forms the basis for consultation, on the understanding that any alternatives offered during that process would be considered.  

Date of Decision: December 17, 2024