The Capital Strategy
About this course
Stitching the Capital Programme, MRP policy, TMSS and Prudential indicators into a single coherent strategy for council approval.
What you'll learn
- What it is
- Ambitions & programme
- Borrowing & MRP
- Affordability
- Governance & approval
Part of these pathways
Related courses
- The Capital Financing Requirement (CFR)
- Balance sheet projections
- ESG & sustainable treasury
- Alternatives to PWLB
- After the S114: capitalisation & EFS
- Devolution & reorganisation: the treasury view
Common questions
What is Annual refresh?
Capital Strategy is refreshed annually alongside the TMSS. Most material changes year-to-year reflect: capital programme updates, financing assumption refresh, member-level priority shifts, regulatory changes.
What is Borrowing rationale?
The Capital Strategy's explanation of why the council needs to borrow — for which schemes, with what affordability, against what alternatives. Strong rationale evidences ¶51 compliance; weak rationale invites audit attention.
What is Cabinet involvement?
Capital Strategy decisions touch every Cabinet portfolio — housing, transport, regeneration, education. The S151 typically leads drafting; the document's recommendation goes to Cabinet collectively before Council approval.
What is Capital Programme?
The detailed list of capital schemes the council plans to undertake — typically a 3-5 year forward programme by service area, with cost estimates, phasing and financing plans. The operational expression of the Capital Strategy.
What is Capital Strategy?
A separate council-approved document, required by the 2021 Prudential Code (Section 5), setting out the council's overall capital ambitions, the financing approach, the affordability of the resulting debt, and the governance framework. Sits above the TMSS and Capital Programme as the strategic narrative document; both flow from it.
What is Commercial investments?
Investments held primarily for financial return. Restricted by Prudential Code ¶51 — authorities must not borrow primarily for financial return. Capital Strategy must set out approach to any existing commercial holdings, including ¶53 review.