Issue - meetings

To submit the report of the Director of Function (Resources)/Section 151 Officer.

It was resolved to recommend the Capital Strategy 2026-2031 to the Full Council.

The report of the Director of Function (Resources)/Section 151 Officer incorporating the Capital Strategy 2026-2031 was presented for the Executive’s consideration.

Councillor Robin Williams, Deputy Leader and Portfolio Member for Finance, Corporate Business and Customer Experience presented the report, noting that the revised CIPFA Prudential Code requires all local authorities to produce a capital strategy. The strategy sets out the Council’s long term investment requirements arising from the Council Plan and other linked strategies together with the capital investment required to deliver those objectives.

The capital expenditure requirement over the next five years is presented through three scenarios –

·                Base case which utilises known funding

·                Ambitious case which utilises a level of unsupported borrowing that may become affordable if the Council’s revenue budget position improves

·                Ideal case which is the investment required to achieve all the Council’s objectives and bring all existing assets to an acceptable condition

Councillor Robin Williams acknowledged that many Council buildings are ageing and that some need significant investment. While such investment would be desirable, it is dependent on the level of future Welsh Government capital funding. The proceeds from the sale of assets will continue to be re-invested in the estate.

The Director of Function (Resources)/Section 151 Officer  reported that the key purpose of the strategy is to manage expenditure and borrowing levels. The borrowing and revenue implications of each scenario are set out in the strategy -  the base case maintains steady costs, whereas the ideal case results in significantly higher and unaffordable costs. The ambitious case represents the preferred position but is dependent on securing additional  Welsh Government grants. Unsupported borrowing remains an option, but the associated costs would fall on Anglesey taxpayers. The Council therefore needs to aim for a level of expenditure between the base and ambitious cases, as base case expenditure alone is  insufficient to maintain existing assets.

The Executive acknowledged that asset management can be complex and noted that while in some cases, asset life can be extended, buildings must be maintained to avoid higher long-term costs. With capital funding and grants reducing, borrowing is increasingly necessary. Executive Members welcomed the level of detail in the strategy, particularly the three case scenario models, which clearly illustrate the challenges facing the Council from a capital spending perspective.

The Chief Executive highlighted the interrelationship between the capital strategy, the Council Plan and other strategic plans. He explained that work is underway to identify the annual funding required to sustain the services linked to those plans. A gap remains between the resources available and what is required. While the Council has been successful in securing grants, consideration will need to be given to reviewing the Council’s estate to streamline the number of buildings and locations. These are long-term decisions, complicated by conditions attached to many buildings, and cannot be taken quickly.

It was resolved to recommend the Capital Strategy 2026-2031 to the Full Council.