Capital and Investment Strategy 2022 to 2023

4.1
Given both the Capital Investment Objectives and the Corporate Priorities described above the following list, whilst not necessarily exhaustive, describes key areas where one might expect to see investment directed.

• Investments that facilitate growth, economic development and regeneration in Buckinghamshire, such as Aylesbury Garden Town, Wycombe area regeneration, Princes Risborough growth areas, East West Rail etc
  
• New infrastructure such as roads and schools to support the growth in housing.
  
• Structural Maintenance of Highways Infrastructure.
  
• Structural Maintenance of Properties in which the Council has a continuing interest, including schools within the local authority family of schools.
  
• Meeting the statutory requirement to provide school places for all primary and secondary age children.
  
• Investment to increase availability of specialised accommodation to meet needs of increasing numbers of highly vulnerable adults and children.
  
• Assets which facilitate community involvement in services which meet corporate objectives.
  
• ICT Infrastructure, both to facilitate modern service delivery from the Council and within the local community, for example Broadband connectivity across the community, mobile phone coverage, gigabit connectivity to support the local economy.
  
• The re-design/re-configuration of assets or services that permit lower on-going revenue costs or halt a trend of increased revenue costs.
  
• New or enhanced existing assets that allow a secure revenue income stream to the Council.
  
• Assets that help the Council meet sustainability targets, such as reduced energy consumption/CO2 emissions, reduced waste disposal via landfill and flood defence.
  
• Assets which facilitate easier access to services, including the Council’s website.
  
• Assets which facilitate service improvements if these are identified corporate priorities and are financially sustainable on an on-going basis.
  
• Assets that facilitate the release of other assets, where the net effect is an increase in value to the Council.

4.2
Given that resources are limited it would not be expected that investments will be made in the following, although there might be exceptional circumstances that dictate otherwise.

• Assets which facilitate service improvements, but that are not corporate priorities.
  
• Assets which result in increased revenue expenditure unless meeting other key priorities.
  
• Assets that lead to an adverse environmental impact created by the Council unless this is unavoidable in achieving a statutory requirement, or Corporate Plan objective.
  
• Assets where the risk exposure exceeds the likely benefits.

4.3.1
Financial Investments can fall into three categories, as defined by the Statutory Guidance issued under section 15(1)(a) of the Local Government Act 2003: Specified Investments; Loans and Non-specified Investments

4.3.2
Specified and non-specified investments are only likely to be undertaken on either a short, or a long-term basis as part of managing the council’s cash flows and are therefore covered by the Treasury Management Strategy rather than here.

4.3.3
Loans may also be used for treasury management purposes, but where they are used in support of service delivery objectives this is covered by the Loans and Guarantees Financial Instruction.

4.4.1
For the purposes of this strategy a non-financial investment is a non-financial asset held by the authority primarily or partially to generate a surplus. This might be through an anticipated appreciation in the capital value of the asset, or by way of delivering a regular income stream, or a combination of both. However, in the current financial climate the emphasis is likely to be on assets that generate a regular income stream.

4.4.2
Although the Council remains open minded to consider a range of opportunities the high likelihood is that non-financial investments will involve property assets, however, it will not involve the investment in property assets purely for yield. Due to the consolidated portfolio inherited by Buckinghamshire Council, the impact that the Coronavirus pandemic will have on future office capacity requirements and the need to mitigate the revenue impacts on post-coronavirus income levels, the Council will look to repurpose some of its portfolio to produce an income stream and meet its corporate objectives, especially in respect of regeneration, affordable housing and economic development.

4.4.3
In addition, on occasions the Council may choose to purchase land or property for strategic reasons rather than just for a return and therefore expected rates of return may be narrower than a pure investment. This might be to protect existing service provision but will most likely be linked to its community leadership role in accommodating and facilitating regeneration, economic development and housing growth. This will require well documented business cases and formal decisions.