Capital and Investment Strategy 2022 to 2023

2.1.1
The Council’s aims and priorities are set out in the Corporate Plan, the latest version of which covers the period 2020 to 2023, although the underpinning service delivery plans are refreshed annually.

The key priorities set out in the Corporate Plan are:

• Strengthening our communities
• Protecting the vulnerable
• Improving our environment
• Increasing prosperity

2.1.2
Of course, all that the Council does is set within a legislative context, so meeting its statutory obligations is a key component determining the actions it takes. In the context of the capital strategy, examples of the statutory requirements are the need to provide sufficient school places, to maintain the highway infrastructure to certain standards and to provide suitable disposal facilities for waste.

2.2.1
The population of Buckinghamshire has grown on average by 0.7% each year for the last two decades. In real terms, there were 68,740 more people in the county in 2020 than there were at the turn of the millennium. Population in the county is expected to continue to grow for the next two decades and the Council needs to take account of these changes in planning its future service provision. The Council in partnership with other agencies, the Local Enterprise Partnership, in particular, has responsibility for facilitating the infrastructure to promote economic growth.. The latest available ONS data predicts that the population will rise from 545,925 in 2020 to 567,303 by 2033 (Source: ONS 2018 MYE Sub National Population Projections). Analysis of current planning permissions and local plan sites indicate housing growth of up to 32,000 additional dwellings in Buckinghamshire between 2020 to 2033 which, if delivered to expected timeframes, would lead to population increases well beyond those currently predicted by the ONS. This level of development not only has implications for new infrastructure but also for the wear and tear on existing infrastructure.

2.2.2
Beyond the current confirmed plans for housing growth there are many pressures in the system to go further as indicated by the Government figures mentioned in the previous paragraph. The Government has been keen to push forward housing growth through the concept of Garden Towns and the Council has agreed with Homes England Housing Infrastructure Fund (HIF) forward funding of just over £172m to create the infrastructure to support the development of the Aylesbury Garden Town. The Council also has HIF funding of £12m for the Princes Risborough expansion area and £7.5m for Abbey Barn Lane.

2.2.3
Notwithstanding the overall growth in the population the nature of the population is also changing. Buckinghamshire already has one of the highest rates of increase in people aged over 85 of all county areas in the country. The diversity of the ethnic and socio-economic make-up of Buckinghamshire is also increasing. These changes are likely to increase the demand on a range of public services, particularly care services. This too will need to be factored into the longer-term planning of service provision. Although there is anticipated to be an overall increase in children over the next decade, the birth rate has dropped in the last 2 years, although an overall increase in school places is expected over the next decade due to the anticipated housing growth, which adds to the challenge of the timing of school place provision.

2.2.4
The location of Buckinghamshire also creates a unique set of circumstances which impacts on economic development and other infrastructure demands which are likely to have capital implications. The high-speed rail line (HS2) will run through the county and have significant knock-on impacts as it is developed. The proximity of the south of the county to London and Heathrow Airport is likely to place an increased burden on transport infrastructure. The north of the county lies at the heart of plans to link Oxford and Cambridge with the East-West Railway.

2.3.1
As well as changes to the profile of the population, developing the economy needs to reflect changes to the way we work and better still to reflect the way we will work in the future. The pace of change in technological advancement appears to get ever faster, so keeping up with these changes presents a range of challenges

2.3.2
The Council has a role in putting in place, or at least facilitating, enabling infrastructure. A good example of this currently might be the increasingly developing market in electric vehicles that will require a more comprehensive network of charging points. However, as is often the case with emerging technologies there are a number of different options available, so identifying which particular solution to support is a key challenge if capital investment is not to be wasted.

2.3.3
By contrast the economic development role the Council plays may need to facilitate experimentation, such as creating space for start-up businesses in emerging technologies. The very nature of this means that there is likely to be a fair degree of failure and the Council needs to determine the degree of risk it is prepared to take and the mitigations that can be put in place.

2.3.4
The Buckinghamshire Integrated Care Partnership is part of the wider Buckinghamshire, Oxfordshire and Berkshire West Integrated Care System. The partnership provides an opportunity for the Council to collaborate with the Clinical Commissioning Group (CCG) and Buckinghamshire Healthcare NHS Trust in particular to deliver improvements to the health and care system, including digital and technological developments, that benefit the residents of Buckinghamshire and deliver excellent value for money for the local health sector and the Council.

2.3.5
An earmarked reserve has been established for the implementation of new systems. The revenue contribution funding that would have been used to fund the new ERP system replacing SAP is being used to establish this reserve, but it is important to recognise that most system solutions are cloud based these days, and the implementation costs of these are revenue in nature not capital. By creating this earmarked reserve, it will allow the Council the flexibility to use the optimum systems solution regardless of whether it is a revenue or a capital solution as the reserve can be a revenue contribution to capital if a capital solution needs to be implemented.

2.4.1
The Coronavirus pandemic has had a significant impact on the national and local economy and a necessary change to the working arrangements of the residents of Buckinghamshire, with people working from home wherever possible, including a significant proportion of the Council’s own staff. As part of the transition to the new unitary Council, there was an expectation that the properties held by the 5 councils would be able to be rationalised. The Work Smart programme is providing the framework for future office working for the Council and ensuring the technological infrastructure is in place to support significant homeworking and office collaboration. The future needs and requirements of the Council will be set out in the Council’s accommodation strategy, which will enable the Council to either sell surplus properties to produce capital receipts or to repurpose to generate a revenue rental income.

2.4.2
All public sector bodies are under financial pressure as well as there being a need to offer the public a more coherent means of accessing services, and the One Public Estate (OPE) project aims to achieve the rationalisation of publicly held assets. The Council will work closely with its strategic partners to look for opportunities to utilise our collective assets to improve public services and generate savings.

2.4.3
The financial pressures on local authorities, caused in large part by huge cuts in Government grant funding, but also significant increases in demand for services, lead to the exploration of alternative sources of income. The increase in surplus assets provides an opportunity for the Council to invest in the repurposing of assets in order to be able to generate additional income and help the Council to shape the post-Covid recovery in Buckinghamshire from a regeneration and economic recovery perspective. Any additional surplus assets may also provide opportunities to deliver other important objectives such as an increase in affordable and key worker housing in Buckinghamshire. It is important however, that sufficient capital receipts are realised to enable the capital programme to be funded and the close monitoring of delivery will be important.

2.4.4
Recovery and Growth Deal’ devolution bid to Government. Outlined in the bid are the key priorities for Buckinghamshire Council and its partners in Buckinghamshire’s recovery from the coronavirus pandemic. Although there is no guarantee that the bid will be successful, it forms a blueprint for other external funding should it become available.