Issue - meetings

Report of the Corporate Director of Finance and Resources (S151 Officer). To be presented by the Cabinet Member for Finance & Corporate Services

DECLARATIONS OF INTEREST MADE FOR THIS ITEM:

None

RESOLVED:

That Cabinet:

1.    Noted the proposed Capital Strategy 2026–2036 (Appendix A) and agree to recommend that Full Council approve and adopt the strategy as the Council’s overarching framework for capital investment, financing and governance.

2.    Noted that the Strategy would be reviewed annually alongside the MTFS and TMSS and reported to Cabinet and Full Council.

3.    Endorsed the Capital Framework and governance arrangements.

Reasons for decision

The Capital Strategy set out the Council’s statutory responsibility to define a clear approach for capital investment and financing. The 2026–2036 strategy built on previous iterations to reinforce affordability, prudence and sustainability in line with the CIPFA Prudential Code. It underpinned financial resilience by aligning the Council’s strategic objectives with the Treasury Management Strategy to provide a coherent framework supporting investment in delivering the Borough Vision 2035 outcomes through the Capital Programme.

The Strategy provided a framework for long?term investment, setting out an evidence?led approach to allocating limited capital resources to projects that fulfilled the Council’s legal and health and safety obligations, met contractual commitments and, where affordable, delivered its strategic priorities. It responded to significant financial challenges, including:

Rising inflation and higher interest rates, which had significantly increased the cost of borrowing and future debt?servicing pressures.
Continuing growth in demand for housing, adult social care and temporary accommodation.
Limited government funding, alongside the use of Exceptional Financial Support (EFS), which was used to fund immediate budget pressures but increased long?term revenue commitments through higher capital financing costs and long?term debt for the Council.

In this context, the Capital Strategy set out a disciplined approach to capital investment, prioritising schemes essential for the delivery of statutory services, health and safety compliance and the reduction of long?term revenue pressures. A significant proportion of the capital programme was funded through borrowing, and the year?on?year increase needed to be reversed to protect the Council’s financial sustainability and ensure affordability within prudential limits.

The Strategy brought together the Housing Revenue Account and the General Fund into a single strategic portfolio view for governance and reporting, while fully maintaining statutory and ring?fencing requirements.

It embedded robust business planning, risk management and benefits?realisation arrangements, strengthening transparency and confidence in decision?making. By prioritising affordability while retaining flexibility, the Strategy supported long?term financial sustainability and enabled the Council to respond effectively to changing economic conditions and strategic priorities.

Financing and Affordability

The Capital Strategy, alongside the Treasury Management Strategy Statement (TMSS) and the Medium Term Financial Strategy (MTFS), set the parameters for a financially sustainable capital programme. Borrowing had to remain within approved prudential limits, with the Council prioritising external grant funding, ringfenced Housing Revenue Account resources and capital receipts before undertaking prudent borrowing in accordance with the Prudential Code. The Council remained within its approved prudential limits set out in the Treasury Management Strategy Statement elsewhere on the agenda, but debt levels were high compared to others, and the capital  ...  view the full decision text for item 400

The Cabinet Member for Finance and Corporate Services introduced the report.

The Cabinet Member explained that the Council’s mission was to build a fairer and greener borough. The strategy set out the approach to public investment in local public infrastructure, including parks, roads, leisure centres, libraries and other facilities. The aim was to provide good?quality infrastructure for residents across all neighbourhoods.

It was noted that, since 2022, the Council had improved more than 30 public parks, investing more than £18m. It had refurbished four public libraries, investing nearly £5m. The four public leisure centres had returned to public management, and £4.1m had already been invested in repairs and improvements, with further work planned. These activities were carried out in collaboration with residents to ensure public services and infrastructure met identified needs.

The Cabinet Member highlighted that the Council recognised the need to keep borrowing requirements as low as possible to ensure that debt and associated costs to the Revenue Account and Housing Revenue Account remained sustainable in the medium to longer term. Where possible, alternative funding sources were used. The council’s responsibility was to invest responsibly and safeguard essential local public services. The strategy also set out the council’s intentions for the future of the borough. It translated the Borough Vision 2035 and the Haringey Deal into a practical and affordable programme focused on providing safe and affordable homes, improving public spaces, supporting children and young people, advancing climate objectives, and improving health and wellbeing.

By focusing on three principles—maintaining core services, delivering projects on time, and responding to local priorities—the council aimed to maximise external funding, reduce long?term revenue pressures and ensure effective use of resources. The approach recognised that capital investment was not limited to infrastructure delivery but also supported growth, preventative measures and reduced future revenue pressures. With established governance arrangements and annual review processes, the strategy provided a framework intended to maintain discipline and flexibility and support the development of a fairer and greener borough.

Following questions from Councillor Connor, the following information was shared:

• It was explained that the Council was working to ensure financial sustainability and that the Council would continuously review the Capital programme to ensure sustainability and best value for money. It was explained that there was a rigorous programme to ensure that spend was closely monitored across the Council.
  
  
• It was explained that the Council had some Capital receipts which could be utilised to undertake the proposed Capital programme and that not all Capital projects would be undertaken through borrowing.
  
  
• It was explained that there had been some work in invest to save opportunities, such as investment into Safety Valve, which would work to reduce costs in other areas of the Council.

RESOLVED:

That Cabinet:

1.    Noted the proposed Capital Strategy 2026–2036 (Appendix A) and agree to recommend that Full Council approve and adopt the strategy as the Council’s overarching framework for capital investment, financing and governance.

2.    Noted that the Strategy would be reviewed annually alongside the MTFS  ...  view the full minutes text for item 400