Appendix 4, Cabinet

For decision · This went to the meeting on Tue 11 Nov 2025. What was decided is in that meeting's minutes.

The revised capital programme totals £672.5m, with £288.7m planned for delivery by 2028/29. p7

The first three years of the programme, covering the Medium Term Financial Plan (MTFP) period to 2028/29, are to be presented for approval, while the years to 2035/36 remain indicative for longer-term planning. p7p64

The programme has been extended by a further year to maintain a 10-year planning horizon, extending funding for ongoing programmes into 2035/36. p37

The remaining total borrowing requirement is £203.4m, of which £73.8m is anticipated by 2028/29. p63

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• p7The updates provide a revised capital programme of £672.5m, of which £288.7m is planned for delivery in the period to 2028/29. The first three years of the programme over the MTFP period to 2028/29 are to be presented for approval, whilst the remaining years to 2035/36 are indicative to represent the longer- term planning for capital investment. A detailed capital programme that reflects all the proposals outlined in this update is provided at Annex A .
• p37B Capital Programme Extension The capital programme has been updated to extend the programme by a further year to maintain a 10-year planning horizon. This extends annual envelopes of funding for ongoing programmes of work and those fully funded by formula grants by one year into 2035/36.
• p63J Capital Programme Borrowing The Capital Strategic Asset Board (CSAB) conducted a capital programme risk review in 2024/25, starting from an assumed base position of removing all core funded projects and providing the capital programme at funded levels only, to provide the maximum level of potential MTFP savings. This reduced the capital programme by £129.2m over the period 2025/26 to 2027/28, and related borrowing costs by £3.9m per annum. The remaining total borrowing requirement following this review and latest update is £203.4m, of which £73.8m is anticipated over the period to 2028/29.
• p644 Impact on the Revenue Medium Term Financial Plan and Treasury Management Capacity 4.1 Decisions on future capital investment should be considered in the context of the impact on the Treasury Management (TM) capacity to fund the investment and the revenue budget position, whereby the cost of funding and Minimum Revenue Provision needs to be included within the MTFP. The proposed capital programme has been prepared to seek reductions in the Council’s borrowing requirement to support the revenue budget position, whilst considering the level of risk associated to removing/reducing investment. 4.2 Current TM modelling for the direct costs of borrowing estimates that for every £10m of additional borrowing, there would be an associated revenue cost of approximately £750,000 per year over the full life of the asset (based on a 30 year asset life), although the value and profile of costs will vary dependent on a number of variables such as timing, internal balances and interest rates. As highlighted at budget setting in February 2024 the current planned programme borrowing requirement will need Treasury Management budget increases outside the current MTFP period.