Budget and Financial Strategy Appendices 2025-26

Contents

Appendix 1 - Funding Analysis for Special Expenses Areas

Appendix 2 - Revenue Budget Service Summary

Appendix 3 - Capital Programme

Appendix 4 - Use of Earmarked Reserves 2025/26

Appendix 5 - Proposed Pricing Schedules (Car Parking and Garden Waste)

Appendix 6 - Pay Policy Statement

Appendix 7 - Transformation and Efficiency Plan (TEP)

Appendix 8 - Capital and Investment Strategy

Appendix 1 - Funding Analysis for Special Expenses Areas

Funding Analysis for special Expense Areas
Description	2024/25	2025/26	Percentage Change
West Bridgford	-	-	-
Parks and Playing Fields	£486,700.00	£496,000.00	-
West Bridgford Town Centre	£115,100.00	£117,400.00	-
Community Halls	£101,300.00	£131,300.00	-
Contingency	£7,300.00	£16,000.00	-
Revenue Contribution to Capital Outlay	£75,000.00	£100,000.00	-
Annuity Charges	£98,000.00	£110,400.00	-
Sinking Fund	£20,000.00	£20,000.00	-
Total	£903,400.00	£991,100.00	-
Tax Base	15,199.40	15,285.10	-
Special Expense Tax	£59.44	£64.44	9.08%
Keyworth	-	-	-
Cemetery	£9,600.00	£9,600.00	-
Annuity Charges	£4,600.00	£500.00
Total	£14,200.00	£10,100.00	-
Tax Base	3,030.20	3,148.20	-
Special Expense Tax	£4.69	£3.21	(31.56%)
Ruddington	-	-	-
Cemetery and Annuity Charges	£10,400.00	£10,400.00	-
Total	£10,400.00	£10,400.00	-
Tax Base	3,156.40	3,311.30	-
Special Expense Tax	£3.29	£3.14	(4.56%)
Total Special Expenses	£928,000.00	£1,011,600.00	9.01%

Appendix 2 - Revenue Budget Service Summary

Revenue Budget Summary
Description	2024/25 Estimate	2025/26 Estimate	2026/27 Estimate	2027/28 Estimate	2028/29 Estimate	2029/30 Estimate
Chief Executive	£1,523,900	£1,612,700	£1,685,500	£1,895,100	£1,717,600	£1,749,700
Finance and Corporate Services	£4,952,200	£4,892,300	£5,255,400	£5,589,300	£5,999,400	£6,338,500
Development and Economic Growth	£482,400	£469,400	£474,100	£500,200	£502,500	£519,900
Neighbourhoods	£7,823,600	£7,937,100	£8,137,100	£8,833,400	£9,399,300	£9,529,200
Net Service Expenditure	£14,782,100	£14,911,500	£15,552,100	£16,818,000	£17,618,800	£18,137,300
Capital Accounting Adjustments	(£1,894,600)	(£1,894,600)	(£1,894,600)	(£1,894,600)	(£1,894,600)	(£1,894,600)
Minimum Revenue Provision	£1,077,700	£2,148,000	£1,043,000	£809,000	£365,000	£339,000
Transfer to/(from) Reserves	£1,178,000	£1,174,000	£739,000	£174,000	£174,000	£174,000
Total Net Service Expenditure	£15,143,200	£16,338,900	£15,439,500	£15,906,400	£16,263,200	£16,755,700
Funding	-	-	-	-	-	-
Other Grant Income	(£615,800)	(£1,761,000)	(£1,537,000)	(£1,537,000)	(£1,537,000)	(£1,537,000)
Localised Business Rates, includes SBRR	(£5,463,200)	(£6,676,000)	(£3,578,100)	(£3,703,900)	(£3,834,400)	(£3,969,800)
Collection Fund (Surplus)/Deficit	(£32,100)	(£835,000)	-	-	-	-
Business Rates Pool Surplus	(£300,000)	(£400,000)	-
Council Tax Income	-	-	-	-	-	-
Rushcliffe	(£7,418,700)	(£7,727,500)	(£8,063,700)	(£8,451,400)	(£8,853,700)	(£9,318,200)
Special Expenses Areas	(£928,000)	(£1,011,600)	(£1,099,600)	(£1,156,500)	(£1,220,700)	(£1,245,100)
New Homes Bonus	(£1,509,000)	(£1,477,600)	-	-	-	-
Total Funding	(£16,266,800)	(£19,888,700)	(£14,278,400)	(£14,848,800)	(£15,445,800)	(£16,070,100)
Net Budget (surplus) / deficit	(£1,123,600)	(£3,549,800)	£1,161,100	£1,057,600	£817,400	£685,600

Appendix 3 - Capital Programme

Development and Economic Growth

Capital Programme - Development and Economic Growth
Scheme	2025/26 Indicative Estimate	2026/27 Indicative Estimate	2027/28 Indicative Estimate	2028/29 Indicative Estimate	2029/30 Indicative Estimate
The Point Enhancements	£25,000	£400,000	-	-	-
Rushcliffe Tourism/Signage	£70,000	-	-	-	-
6F Boundary Court	-	-	-	£35,000	-
Cotgrave Business Hub	£70,000	-	-	-	-
Manvers Business Park Enhancements	£200,000	£70,000	-	£50,000	-
Bingham Arena	-	-	-	£30,000	-
Streetwise Depot	£100,000	£60,000	-	-	-
Bridgford Park Kiosk	£25,000	-	-	-	-
Colliers Business Park Enhancements	£16,000	£50,000	-	-	-
Walkers Yard 1 a/b and 3	£30,000	-	-	-	-
Highways Verges: Cotgrave/Bingham/Cropwell Bishop	£200,000	-	-	-	-
Wilwell Cutting Bridge	-	£50,000	-	-	-
Devonshire Road Railway Bridge special expense	-	£100,000	-	-	-
West Bridgford Town Centre	-	£500,000	-	-	-
Keyworth Cemetery	£25,000	-	-	-	-
Sub Total	£761,000	£1,230,000	0	£115,000	0

Neighbourhoods

Capital Programme - Neighbourhoods
Neighbourhoods	2025/26 Indicative Estimate	2026/27 Indicative Estimate	2027/28 Indicative Estimate	2028/29 Indicative Estimate	2029/30 Indicative Estimate
Vehicle Replacement	£2,511,000	£496,000	£2,075,000	£603,000	£1,288,000
Support for Registered Housing Providers	-	-	£1,617,000	£1,617,000	£1,617,000
Hound Lodge - enhancements	-	£395,000	-	-	-
Discretionary Top Ups	£56,000	-	-	-	-
Disabled Facilities Grants	£1,040,000	£840,000	£840,000	£840,000	£840,000
Toot Hill Sports Centre Enhancements	£100,000	-	-	-	-
Cotgrave and Keyworth Leisure Centre - enhancements	£1,200,000	-	£125,000	-	-
East Leake Leisure Centre - enhancements	-	£75,000	£50,000	-	-
Rushcliffe Arena Enhancements	-	£50,000	£175,000	-	£35,000
Edwalton Golf Courses enhancements	-	£100,000	-	-	-
Car Park Resurfacing	£18,000	-	-	-	-
Play Areas - Special Expense	£100,000	£100,000	£100,000	£75,000	£75,000
West Park enhancements - Special Expense	£425,000	-	-	-	-
Gresham Sports Pavilion	-	£150,000	-	-	-
Rushcliffe Country Park - enhancements	-	£25,000	-	£25,000	-
Rushcliffe Country Park - play area	£25,000	-	-	-	-
Lutterell Hall - Special Expense	-	-	£125,000	£75,000	-
Edwalton Community Facility - Special Expense	£840,000	-	-	-	-
Warm Homes Grants	£750,000	£1,800,000	-	-	-
Sub Total	£7,065,000	£4,031,000	£5,107,000	£3,235,000	£3,855.00

Finance and Corporate Services

Capital Programme - Finance and Corporate Services
Finance and Corporate Services	2025/26 Indicative Estimate	2026/27 Indicative Estimate	2027/28 Indicative Estimate	2028/29 Indicative Estimate	2029/30 Indicative Estimate
Information Systems Strategy	£368,000	£120,000	£230,000	£230,000	£230,000
Contingency	£150,000	£100,000	£100,000	£100,000	£100,000
Sub Total	£518,000	£220,000	£330,000	£330,000	£330,000

Capital Programme - Total
Programme Total	2025/26 Indicative Estimate	2026/27 Indicative Estimate	2027/28 Indicative Estimate	2028/29 Indicative Estimate	2029/30 Indicative Estimate
Total	£8,344,000	£5,481,000	£5,437,000	£3,680,000	£4,185,000

Project Appraisal Forms

Project Name: The Point Enhancements

Cost Centre: 0360

Reference: 1

Project Lead: Property Services Manager

Request for Project from: Property Services Manager

Detailed Description:

£25,000 provision has been slipped from 2024/25 to 2025/26 for improvements to automatic entrance doors and controls, which are at end of useful life.

£400,000 has been included in 2026/27 for replacement of office comfort heating and cooling systems which are end of useful life. Operational reliability will become less predictable and obtaining replacement parts will become increasingly difficult and expensive.

Location: The Point, West Bridgford

Director: Development and Economic Growth

Contribution to the Council's aims and objectives

Corporate Priorities:
Efficient Services – operational efficiency of existing equipment is less certain and more expensive compared to modern technology.
The Environment – replacement equipment is more energy efficient reducing carbon emissions.

Strategic Commitments:
Responsible income generation and prudent borrowing where deemed appropriate, to facilitate the delivery of services.
Ongoing appraisal and alignment of resources linked to growth aspirations.
Bringing new business to the Borough and nurturing our existing businesses, helping them to grow and succeed.
Working to achieve a carbon neutral status for the Council’s operations.

Community Outcomes: Upgrade works will enhance the efficiency of the premises, improve reliability of equipment and maximise the comfort of users whilst maximising use of resources.

Environmental Outcomes: Committing to enhancing the operational and thermal performance of the facility will ensure that ongoing carbon emissions are mitigated which aligns with corporate ambitions to be net zero by 2030.

Other Options Rejected and Why: Do not carry out upgrade works – this would put at risk operational certainty of the facility, negatively impact customer/tenant comfort and safety and fail to minimise operational costs. Effective maintenance and replacement are essential to uphold property asset values and ensure high levels of occupation/income.

Procurement route proposed and stage: External door upgrade – detailed design will commence early 2025 with site installation
during Summer of 2025. Procurement will be via restricted process.
Office heating/cooling equipment – detailed cost estimates and design will commence early 2026 with site installation during the Summer of 2026 – procurement will be via open tender or Framework.

Project Management Office support required?: No

Start date: to be determined

Completion date: not stated

Capital Cost (total): £425,000

Year 1: £25,000
Year 2: £400,000

Capital Cost Breakdown

Works: £23,000
Equipment: £396,000
Other: not stated
Fees: £6,000

Revenue cost per annum

Year 1: 2025/26 - Not quantifiable at this stage, but should see revenue spend on repairs reduce
Year 2: 2026/27 - same as 2025/26
Year 3: 2027/28 - same as 2025/26
Year 4: 2028/29 - same as 2025/26
Year 5: 2029/30 - same as 2025/26

Proposed Funding

External: not applicable
Internal: Investment Properties Reserve

Useful Economic Life: 15 years

New or Replacements: Replacements

Depreciation per annum: not applicable

Capital Financing Costs: £17,000 per annum as opportunity cost of lost interest.

Residual Value: not applicable

Category of Asset: Investment Property

IFRS New Lease Checklist Completed: not applicable

VAT Treatment Assessed: not applicable

Approval Required from: Council Budget Setting

Project Name: Rushcliffe Tourism and Signage

Cost Centre: 0512

Reference: 2

Project Lead: Head of Economic Growth and Property

Request for Project from: Request from Cabinet (Cabman)

Detailed Description:

RBC will work with Nottinghamshire County Council (NCC) and National Highways to install ‘Welcome to Rushcliffe’ signage on key routes into the Borough.

Locations have been identified for 8 signs (3 on National Highways roads and 5 on NCC roads). Final sign design is yet to be agreed but options have been explored and high-level costs obtained from NCC and National Highways.

Location: Across the Borough

Director: Development and Economic Growth

Contribution to the Council's aims and objectives

Corporate Priorities:
Quality of Life
Sustainable Growth
Strategic Commitments:
Working to create great communities to live and work in
Improvements to tourism and the visitor economy to sustain economic development and growth.

Community Outcomes: Tourism and the visitor economy is a key priority within the Council’s new economic growth strategy and the installation of signage assists with this, helping to promote the Borough as a destination for residents and visitors.

Environmental Outcomes: Not applicable

Other Options Rejected and Why: The option not to install signage and promote tourism was rejected as it would not align to the new economic growth strategy.

Procurement route proposed and stage: High level costs provided by NCC and National Highways. Neither quote includes potential traffic management as this will only be available when site assessments have been carried out.

Indicative costs for preferred signage style have also been sought but these could change.

Project Management Office support required?: No

Start date: to be determined

Completion date: not stated

Capital Cost (total): £70,000

Year 1 - 2025/26: £70,000
Year 2: not applicable

Capital Cost Breakdown

Works: £33,000
Equipment: £3,800 (signs)
Other: Nothing included for possible traffic management which would increase costs significantly. Approximately £33,200 allocated.
Fees: None

Revenue cost per annum

Year 1: 2025/26 - not stated
Year 2: 2026/27 - likely some ongoing cleaning or maintenance
Year 3: 2027/28 - not stated
Year 4: 2028/29 - not stated
Year 5: 2029/30 - not stated

Proposed Funding

External: Not applicable
Internal: Organisation Stabilisation Reserve/Potential to use new UKSPF allocation.

Useful Economic Life: 25 years

New or Replacements: New

Depreciation per annum: £2,800

Capital Financing Costs: £2,800

Residual Value: Not applicable

Category of Asset: Equipment

IFRS New Lease Checklist Completed: Not applicable

VAT Treatment Assessed: Not applicable

Approval Required from: Council Budget Setting

Project Name: Manvers Business Park Enhancements

Cost Centre: 0206

Reference: 3

Project Lead: Property Services Manager

Request for Project from: Property Services Manager

Detailed Description:

£200,000 2025/26 reprofiled from 2024/25. Existing roof coverings, fascias and rainwater goods to early phases of the development are in excess of 20 yrs old and showing signs of deterioration. Proposal is to refurbish roof coverings to extend life by application of accredited/warranted liquid roofing compounds and upgrade fascias and rainwater goods.

£70,000 2026/27 to improve the EPC rating - upgrade LED lighting/extractor fans

Location: Manvers Business Park, Cotgrave

Director: Development and Economic Growth

Contribution to the Council's aims and objectives

Corporate Priorities:
Deliver economic growth to ensure a sustainable, prosperous and thriving local economy.
Transforming the Council to enable the delivery of highly efficient high-quality services.
Strategic Commitments:
Maintain commercial viability of existing business units and protect income stream.
Capital enhancement works to roof areas will improve the visual appearance of the site and extend the useful life of the structure, whilst also minimising likelihood of reactive maintenance work.
The energy efficiency improvements will ensure that the premises comply with forecast MEES standards, a requirement for letting.
Examine the future viability of all Council owned assets including property and equipment.
Improve efficiency and reliability of service and reduce operating costs.

Community Outcomes: Capital enhancement works to roof areas will improve the visual appearance of the site.
The Borough is more attractive and prosperous if business units are well maintained helping to sustain on-going employment opportunities and protect thriving local businesses.

Environmental Outcomes: Improvements to the EPC rating will support the Council's aim to be carbon neutral by 2030.

Other Options Rejected and Why:

Do not carry out refurbishment works – this would result in further deterioration of the fabric and shortening of the life span of the roof covering to a point where wholesale replacement would become necessary. Visual impact of poorly maintained assets would reflect poorly on tenant/customer perception and ultimately rental yields. Effective maintenance and replacement are essential to uphold property asset values and ensure high levels of occupation/income. Failure to achieve relevant MEES standard will render the premises unlettable.

Procurement route proposed and stage:

Proposed roofing scheme cost estimate review to be carried out early in 2025. This will be followed by detailed design and site delivery in late Spring – procurement will be either open tender or via Framework route.
Energy efficiency enhancements – budget review in early 2026 followed by scheme design in Spring 2026.

Project Management Office support required?: No

Start date: to be determined

Completion date: not stated

Capital Cost (total): £270,000

Year 1 2025/26: £200,000
Year 2 2026/27: £70,000

Capital Cost Breakdown

Works: £182,000
Equipment: £64,000
Other: not applicable
Fees: £24,000

Additional Revenue cost or saving per annum

not stated

Proposed Funding

External: not applicable
Internal: Investment Property Reserve

Useful Economic Life: 15 years

New or Replacements: Replacement

Depreciation per annum: not applicable

Capital Financing Costs: £10,800 per annum

Residual Value: not applicable

Category of Asset: Investment Property

IFRS New Lease Checklist Completed: not applicable

VAT Treatment Assessed: not applicable

Approval Required from: Council Budget Setting

Project Name: Streetwise Depot Operational and Energy Efficiency Enhancements

Cost Centre: 0208

Reference: 4

Project Lead: Property Services’ Manager / Streetwise Manager

Request for Project from: Property Services’ Manager / Streetwise Manager

Detailed Description:

£100,000 reprofiled from 2024/25 to 2025/26 for improvements to vehicle wash facilities, in addition to enhancement of PPE store and alterations to improve pedestrian safety.
£60,000 2026/27 for building fabric thermal improvements to enhance energy efficiency and reduce operational heating costs.

Location: Bingham

Director: Development and Economic Growth / Neighbourhoods

Contribution to the Council's aims and objectives

Corporate Priorities:
Efficient Services – improvements planned will help to control operational costs.
The Environment – improvements will help to minimise environmental operational impacts
Strategic Commitments:
Ongoing appraisal and alignment of resources to support efficient service delivery.
Reviewing service delivery approach to ensure compliance with environmental standards.
Working to achieve a carbon neutral status for the Council’s operations

Community Outcomes:

Residents believing that the Council delivers Value for Money.
Council has a clear road map to achieving carbon neutral status.

Environmental Outcomes:

Planned improvement to vehicle wash will ensure compliance with environmental standards.
Fabric thermal enhancements will help to minimise site energy usage, carbon emissions and wider carbon management ambitions.

Other Options Rejected and Why:

Doing nothing – in terms of the vehicle wash facility, this would potentially leave the Council open to challenge in terms of environmental legislation. In terms of rationalising storage and pedestrian safety, it could give rise to operational difficulties and potential Health and Safety issues. In terms of thermal fabric insulation, it would impact the Council’s commitment to be carbon neutral by 2030 in its own operations.

Procurement route proposed and stage:

Scheme design for vehicle wash, storage and pedestrian safety has begun, procurement will take place early 2025 and site works in Spring 2025 – procurement will be via individual works packages and restrictive tender.
Scheme design for thermal fabric improvements will commence early in 2026 with site delivery Summer 2026. Procurement will be via restrictive tender or Framework.

Project Management Office support required?: No

Start date: not stated

Completion date: not stated

Capital Cost (total): £160,000

Year 1 2025/26: £100,00
Year 2 2026/27: £60,00

Capital Cost Breakdown

Works: £146,000
Equipment: not applicable
Other: not applicable
Fees: £14,000

Additional Revenue cost or saving per annum

Year 1: 2025/26: not applicable
Year 2: 2026/27: not applicable
Year 3: 2027/28 - Gas consumption will be reduced from this point onwards but unable to predict at this point
Year 4: 2028/29: not applicable
Year 5: 2029/30: not applicable

Proposed Funding

External: not applicable
Internal: Climate Change Reserve and Capital Receipts

Useful Economic Life: 15 years

New or Replacements: New and replacement

Depreciation per annum: £10,600

Capital Financing Costs: £6,400 per annum

Residual Value: not applicable

Category of Asset: Operational Land and Buildings

IFRS New Lease Checklist Completed: not applicable

VAT Treatment Assessed: not applicable

Approval Required from: Council Budget Setting

Project Name: Colliers Business Park Enhancements

Cost Centre: 0210

Reference: 5

Project Lead: Property Services Manager

Request for Project from: Property Services Manager

Detailed Description:

£16,000 reprofiled from 2024/25 to 2025/26 for enhancements to site perimeter security for Phase 2 units.
£50,000 2026/27 – energy efficiency and roof covering improvements to Phase 1 units.

Location: Colliers Business Park, Cotgrave

Director: Development and Economic Growth

Contribution to the Council's aims and objectives

Corporate Priorities:
Deliver economic growth to ensure a sustainable, prosperous and thriving local economy.
Transforming the Council to enable the delivery of highly efficient high-quality services.
Strategic Commitments:
Maintain commercial viability of existing business units and protect income stream.
Capital enhancement works to roof areas will improve the visual appearance of the site and extend the useful life of the structure, whilst also minimising likelihood of reactive maintenance work.
The energy efficiency improvements will ensure that the premises comply with forecast MEES standards, a requirement for letting.
Examine the future viability of all Council owned assets including property and equipment.
Improve efficiency and reliability of service and reduce operating costs.

Community Outcomes: Capital enhancement works to roof areas will improve the visual appearance of the site. Perimeter security improvements will help to safeguard against criminal activity. The Borough is more attractive and prosperous if business units are well maintained helping to sustain on-going employment opportunities and protect thriving local businesses.

Environmental Outcomes: The energy efficiency improvements will support the Council’s aim to be carbon neutral by 2030.

Other Options Rejected and Why:

Procurement route proposed and stage: x

Project Management Office support required?: No

Start date: to be determined

Completion date: not stated

Capital Cost (total): £66,000

Year 1 2025/26: £16,000
Year 2 2026/27: £50,000

Capital Cost Breakdown

Works: £23,000
Equipment: £37,500
Other: not applicable
Fees: £5,000

Additional Revenue cost or saving per annum

not stated

Proposed Funding

External: not applicable
Internal: Investment Property Reserve

Useful Economic Life: 15 years

New or Replacements: Replacement

Depreciation per annum: not applicable - investment property

Capital Financing Costs: £2,600 per annum

Residual Value: not applicable

Category of Asset: Investment Property

IFRS New Lease Checklist Completed: not applicable

VAT Treatment Assessed: not applicable

Approval Required from: Council Budget Setting

Project Name: West Bridgford Town Centre Regeneration

Cost Centre: 0665

Reference: 6

Project Lead: Head of Economic Growth and Property

Request for Project from:

Included in the Economic Growth Strategy which was endorsed by Cabinet in October 2024.

Detailed Description:

£500,000 included in 2026/27 to support the pedestrianisation of Central Avenue in West Bridgford.
The project will require additional funding from other sources as costs will exceed the £500,000.

Location: West Bridgford Town Centre

Director: Development and Economic Growth

Contribution to the Council's aims and objectives

Corporate Priorities:
Quality of Life
Sustainable Growth
The Environment
Strategic Commitments:
Working with our partners to create great, safe, and clean communities to live and work in.
Recognising opportunities to create vibrant town centres which are attractive and accessible to all, as well as providing a pleasant retail experience.
Improving accessibility and specifically pedestrianising Central Avenue in West Bridgford are key priorities and actions included in the Economic Growth Strategy.

Community Outcomes:

Our town centres are about more than economic growth, they play a fundamental role in good quality of life in the Borough. Giving residents access to amenities and services as well as providing space for community and leisure activities.
This project, if delivered, will support and enhance West Bridgford town centre, helping support local businesses as well as improving the environment for local residents.

Environmental Outcomes: Pedestrianising the Avenue will reduce vehicle movement in the centre of Bridgford and it is intended will encourage more people to travel in on foot or bikes.

Other Options Rejected and Why: The scope of the work to Central Avenue is yet to be agreed and will include some options: e.g. leave as is; restrictions on bus movements; full pedestrianisation etc. The preferred option will depend on the outcome of studies and consultation that needs to be carried out ahead of any work.

Procurement route proposed and stage: This has not been progressed yet, an service level agreement with Nottinghamshire County Council to enable them to award to ViaEM may be an option.

Project Management Office support required?: If the project progresses, PM support may be required, and this will be discussed with the team as the detail is worked up.

Start date: to be determined

Completion date: not stated

Capital Cost (total): £500,000

Year 1 2025/26: not applicable
Year 2 2026/27: £500,000

Capital Cost Breakdown

Works: not applicable
Equipment: not applicable
Other: £500,000 grant
Fees: not applicable

Revenue cost or saving per annum

not stated

Proposed Funding

External: not applicable
Internal: Organisation Stabilisation Reserve

Useful Economic Life: 30 years

New or Replacements: New

Depreciation per annum: not applicable

Capital Financing Costs: £20,000 per annum

Residual Value: not stated

Category of Asset: Revenue Expenditure funded from Capital Under Statute

IFRS New Lease Checklist Completed: not applicable

VAT Treatment Assessed: not applicable

Approval Required from: Council Budget Setting

Project Name: Vehicle Replacement

Cost Centre: 0680

Reference: 7

Project Lead: Fleet and Vehicle Infrastructure Manager / Service Manager Neighbourhoods

Request for Project from: Rolling Vehicle Replacement Programme. Government Directive for Glass Recycling.

Detailed Description:

The authority owns vehicles ranging from large refuse freighters to small vans and items of mechanical plant. As these vehicles and plant age and become uneconomic to maintain and run, they are replaced on a new for old basis. Although there is a programme for replacements for the next ten years, each vehicle or machine is assessed annually, and the programme continually adjusted to take account of actual performance. This provision will be used to acquire new vehicles and plant, undertake refurbishments to extend vehicle life and value and to purchase second-hand vehicles and plant as and when appropriate. There is beginning to be a concentration of
focussing on newer cleaner technology as we replace existing fleet vehicles in line with the Council’s Carbon management agenda, exploring alternatives such as electric and hydrogen cell technology as well as alternative fuel use to look at cutting down on emissions whilst ensuring the vehicles remain operationally viable and offer value for money.
The 2025/26 provision includes £1,710,000 for Glass Recycling comprising £460,000 vehicles and £1.250,000 containers.

Location: Eastcoft Depot

Director: Neighbourhoods

Contribution to the Council's aims and objectives

Corporate Priorities:
Quality of Life
Efficient Services
The Environment
Strategic Commitments:
Working with our partners to create great, safe, and clean communities to live and work in.
Ongoing appraisal and alignment of resources linked to growth aspirations.
Reviewing our policies and ways of working to protect natural resources, and to implement environmentally beneficial infrastructure changes. To reduce waste and increasingly reuse and recycle to protect the environment for the future.
Working with key partners to respond to any proposals from the new Environment Act and any changes or directives from central government regarding what wastes should be collected and how.
Delivering a high-quality waste and recycling collection service.
Delivering a high-quality street cleansing, grounds maintenance and arboriculture service.
A commitment to look at cleaner vehicles in line with our commitment to protect the environment, in particularly alternative fuel vehicles.
Working to achieve a carbon neutral status for the Council’s operations
The replacement of vehicles is critical to the performance of the front-line services. Regular vehicle and plant replacement with new updated engines help to meet climate change and national indicator targets for emissions and helps maintain a cleaner air
quality within the Borough.

Community Outcomes:

To address climate change and the need to reduce carbon emissions. The introduction of new euro standard engines will lower emissions. The new vehicles will also reduce maintenance costs on the vehicles they replace however it should be noted that the
remainder of the fleet ages and therefore the fleet profile and maintenance costs overall remain stable.
Glass Recycling – the addition of a kerbside glass recycling service should see a high take up from residents and increased resident satisfaction with waste and recycling services. Data suggest that take up rates are high for such services, preventing the need to travel and visit recycling bring sites and increasing recycling rates

Environmental Outcomes:

The Council is actively looking at newer cleaner technologies and is committed to working with others to consider options and procure newer vehicles that will help commit to our carbon management plan. Whilst larger HGV electric vehicles may not be an
option for Rushcliffe due to the range and geographical nature of our Borough, we continue to explore the use of and practicalities of alternative fuel such as the use of Hydro generated Vegetable Oil (HVO) following a trial in late 2021 and are considering
the impact of the trial with potential 90% reduction in emissions and the operational logistics and infrastructure arrangements as well as the costs of fuelling our vehicles utilising HVO. Smaller fleet vehicles such as small vans, etc could be replaced by electric
vehicles which are readily available, and this option will be considered as and when such vehicles are due for replacement in line with the replacement programme.
Glass Recycling – it is likely we will see an increase on overall tonnage collected and further diversion of glass from the residual waste bin. Glass is colour separated and fully recycled back into glass bottles and jars and an increase in the overall recycling rate will also be seen.

Other Options Rejected and Why:

An historic review was undertaken to consider the leasing and hiring in of vehicles. Due to the level of capital resources, it was concluded that it was uneconomical to do either of these two options but as resources are reduced, these options may need to
be revisited again. However, there are also distinct advantages in direct purchase:

The authority has control over the maintenance of the vehicles.
It is difficult to change the terms and conditions of a lease.
High performing vehicles can have their lifespan lengthened.
Poor performing vehicles can have their lifespan shortened.

Not being tied into lengthy lease/hire contracts means the service can react and adapt to change quickly.

It should be noted that the transition of Streetwise back to an in-house service sees some vehicles used, tied into current lease arrangements which continue to be assessed for outright purchase.

The Council now actively looks at the possible purchase of secondhand vehicles and will refurbish vehicles to extend their life and value.

Glass Recycling – whilst the Council has previously collected glass from a range of bring sites, the new Simpler Recycling legislation places a statutory service for collection of glass from the kerbside.

Procurement route proposed and stage:

Vehicles likely to be procured through existing vehicle procurement frameworks as part of the wider Nottinghamshire Transport Group contracts. Containers required will be through frameworks in place working in conjunction with Nottinghamshire County Council procurement team.

Project Management Office support required?: No

Start date: Ongoing

Completion date: Ongoing

Capital Cost (total): £3,007,000

Year 1 2025/26: £2,511,000
Year 2 2026/27: £496,000

Capital Cost Breakdown

Works: £0
Equipment: £3,007,000
Other: £0
Fees: £0

Revenue cost or savings per annum

Year 1: 2025/26 £40,300
Year 2: 2026/27 £129,400
Year 3: 2027/28 £157,000
Year 4: 2028/29 £185,700
Year 5: 2029/30 £189,000

As each vehicle replaces an existing vehicle, there is no increase in the overall revenue costs. Whilst newer vehicles can lead to less expenditure on breakdown and repair, older vehicles will cost more. The overall fleet profile remains relatively constant and therefore service budgets remain the same. However, with property growth and the potential impact on waste collections as a result of the Environment Act, there is the likelihood moving forward that additional revenue expenditure may be incurred, and this will need to be considered for future budget years. The introduction of mandatory weekly food waste collections (due October 2027) will have a significant effect on the number of vehicles required and whilst we have an indicative figure and potential central government funding this is likely to change as and when the implementation date gets closer.

Glass Recycling revenue costs for vehicles only estimated to be 2025/26 £5,500, 2026/27 £27,200 and then £37,200 for future years. These figures are included in the additional revenue costs section above. All of the costs are expected to be covered by EPR Government Grant.

Proposed Funding

External: not applicable
Internal: Capital Receipts, Vehicle Replacement Reserve, and Simpler Recycling Reserve

Useful Economic Life: Various

New or Replacements: New and replacements

Depreciation per annum: Various

Capital Financing Costs: £96,000 per annum in year 1 plus £20,000 per annum in year 2 as opportunity cost of lost interest on outlay of capital resources.

Residual Value: Various

Category of Asset: Vehicle and plant

IFRS New Lease Checklist Completed: not applicable

VAT Treatment Assessed: not applicable

Approval Required from: Council Budget Setting

Project Name: Hound Lodge Enhancements

Cost Centre: 0308

Reference: 8

Project Lead: Property Services Manager / Strategic Housing Manager

Request for Project from: Property Services Manager

Detailed Description:

Hound Lodge provides temporary accommodation for families who find themselves unintentionally homeless; providing accommodation in this circumstance is a statutory function of the Council. The building has existed in broadly its current form since the 1990s when the Council acquired and carried out conversion works which included the addition of a single storey rear extension. The original areas of the building are circa 100 years old.

The building requires enhancement not only to improve how it can be operated and managed in terms of residents, but also from an energy consumption and efficiency perspective

Location: West Bridgford

Director: Development and Economic Growth / Neighbourhoods

Contribution to the Council's aims and objectives

Corporate Priorities:
Quality of Life – the enhancements will create a more comfortable living environment for residents.
Efficient Services – the enhancements will help to minimise operational energy/utility costs.
The Environment – the enhancements will help to mitigate carbon emissions.
Strategic Commitments:
Protecting our residents’ health and facilitating healthier lifestyle choices.
Providing high quality facilities which meet the needs of our residents.
Creating opportunities for young people to realise their potential.
Protecting the most vulnerable in our communities.

Community Outcomes: x

The Council fulfils its statutory duties for the provision of suitable temporary accommodation and avoids the need to use B& B accommodation at an additional cost.
Residents of the Borough continue to receive the council services they require.

Environmental Outcomes: x

Committing to reviewing and enhancing the operational and thermal performance of the facility will ensure that ongoing carbon emissions are mitigated which aligns with corporate ambitions to be net zero by 2030.

Other Options Rejected and Why:

Not reviewing and enhancing the operational and thermal performance of the facility will allow current shortcomings to continue, this in turn will put strain on resources and limit the Council’s overall ambitions to achieve net zero by 2030.

Procurement route proposed and stage:

Detailed scheme design and the obtaining of any statutory approvals will take place through 2025/26; the procurement and delivery of the improvements will take place through 2026/27 – any interruptions to space heating etc will be targeted to take place outside of heating season. Procurement will either be via open tender or Framework.

Project Management Office support required?: No

Start date: to be determined

Completion date: not stated

Capital Cost (total): £395,000

Year 1 2025/26: not applicable
Year 2 2026/27: £395,000

Capital Cost Breakdown

Works: £173,000
Equipment: £205,000
Other: not applicable
Fees: £17,000

Revenue cost per annum

Year 1: 2025/26: not applicable
Year 2: 2026/27: not applicable
Year 3: 2027/28 Gas consumption will be reduced from this point onwards, but unable to predict at this point
Year 4: 2028/29: not applicable
Year 5: 2029/30: not applicable

Proposed Funding

External: not applicable
Internal: Capital Receipts £110,000 and Climate Change Reserve £285,000

Useful Economic Life: 25 years

New or Replacements: New and replacement

Depreciation per annum: £15,800

Capital Financing Costs: £15,800 per annum in lost interest

Residual Value: not stated

Category of Asset: Operational Land and Buildings

IFRS New Lease Checklist Completed: not applicable

VAT Treatment Assessed: not applicable

Approval Required from: Council Budget Setting

Project Name: Cotgrave Leisure Centre and Keyworth Leisure Centre - Enhancements

Cost Centre: x

Reference: 9

Project Lead: Team Leader Leisure Contract, Sport and Health / Communities Manager

Request for Project from: Team Leader Leisure Contract, Sport and Health / Communities Manager

Detailed Description:

The scheme was approved as part of the 23/24 Budget Setting Report - appraisals 6 and 7.
£1,000,000 has been reprofiled from 2024/25 to 2025/26 to complete the works at Cotgrave and undertake the enhancement works at Keyworth.
An additional £200,000 has been included in the 2025/26 Capital Programme for additional works at Keyworth. It is planned to extend the scope of refurbishment works to include regrouting of pool tiles in both pools, additional cosmetic refurbishment to walls in the pool hall and the pool surrounds currently not in scope, replacement pool covers and a new pool hoist alongside enhanced graphics, vinyls and café fit out to enhance the finished centre.

Location: Cotgrave Leisure Centre and Keyworth Leisure Centre

Director: Neighbourhoods

Contribution to the Council's aims and objectives

Corporate Priorities: x
Quality of Life
Efficient Services
The Environment
Sustainable Growth
Strategic Commitments:
Protecting our residents’ health and facilitating healthier lifestyle choices.
Provide high quality community facilities which meet the needs of our residents and contribute towards the financial independence of the Council.
Ensuring well maintained facilities to support growing populations and increased usage
Creating opportunities for young people to realise their potential.
Ongoing appraisal and alignment of resources linked to growth aspirations.
Working to achieve carbon neutral status for the Council’s operations.

Community Outcomes:

To ensure the provision of high-quality community facilities which meet community need.
To protect our residents’ health and facilitate healthier lifestyle choice.

Environmental Outcomes

Material selection, wherever possible locally sourced, carbon efficient production, longevity of materials will be considered when selecting finishes.
Upgrades to lighting and mechanical building elements will look to use low energy technology wherever feasible.

Other Options Rejected and Why:

Do not carry out refurbishments works – this would result in further deterioration of the fabric/fixtures/finishes which will potentially increase revenue maintenance/operating costs and with worsening visual appearance, diminish customer experience / satisfaction.
This may also lead to loss of customers resulting in a less efficient service and not be in line with the commitments made in the Leisure Strategy refresh which was adopted by Cabinet in December 2022.

Procurement route proposed and stage:

The contractor is already appointed and delivering decarbonisation ad refurbishment works at Cotgrave leisure centre whilst completing the design and pricing of Keyworth leisure centre refurbishment works. The Keyworth works are currently costed at £586,000. Any additional works funded by the additional £200,000 will be logged as contract variation, with quotes and cost verified by the council’s employed Cost Management (Quantity Surveyor) Consultant.

Project Management Office support required?:

The scheme is being delivered through internal project management through the Team Leader, Leisure Contract, Sport and Health and external project Management Consultants. The cost of these services is already accounted for.

Start date: 2023

Completion date: 2025

Capital Cost (total): £5,521,000

Previous year: £4,321,000
Year 1 2025/26: £1,200,000
Year 2 2026/27: not applicable

Capital Cost Breakdown - to be determined

Works: not stated
Equipment: not stated
Other: not stated
Fees: not stated

Revenue cost or saving per annum

not stated

Proposed Funding

External: Government Grants - £1.875,000 and Section 106/Community Infrastructure Levy - £1,149,000
Internal: Capital receipts - £1,576,000 and Reserves - £921,000

Useful Economic Life:

Tiling ad poolside works 25 years
Hoist and pool covers 10 years
Café fit out and vinyl’s 7 years

New or Replacements: New and replacement

Depreciation per annum: will vary

Capital Financing Costs: £100,000 per annum as opportunity cost of lost interest on use of own resources.

Residual Value: not applicable

Category of Asset: Operational Land and Buildings, Equipment and Plant

IFRS New Lease Checklist Completed: not applicable

VAT Treatment Assessed: not applicable

Approval Required from: Council Budget Setting

Project Name: East Leake Leisure Centre Enhancements

Cost Centre: 0686

Reference: 10

Project Lead: Team Leader Leisure Contracts, Sport and Health

Request for Project from: Team Leader Leisure Contracts, Sport and Health / Communities Manager

Detailed Description:

This scheme is a ring-fenced sum to be drawn on and used to enhance East Leake Leisure Centre when the Private Finance Initiative) (PFI arrangement ends. Whilst the PFI requires the centre to be handed back with a determined lifespan remaining on assets, mechanical & electrical installations and fixtures and fittings, it is anticipated that some cosmetic enhancement to aid with rebranding from the incumbent operator Mitie to bring the centre in line with other RBC leisure facilities will be required. The precise use of the funds will be better understood as the PFI dilapidation and handover surveys are completed in Summer 2026 and there is clarity on the standard of assets being handed back. Works may include decoration, flooring, replacement lighting, new signage, enhanced audio-visual equipment and public realm items to improve the attractiveness of the centre.

Location: East Leake

Director: Neighbourhoods

Contribution to the Council's aims and objectives

Corporate Priorities:
Quality of Life
Efficient Services
The Environment
Sustainable Growth
Strategic Commitments:
Protecting our residents’ health and facilitating healthier lifestyle choices.
Provide high quality community facilities which meet the needs of our residents and contribute towards the financial independence of the Council.
Ensuring attractive and well-maintained facilities to support growing populations and increased usage
Creating opportunities for young people to realise their potential.
Ongoing appraisal and alignment of resources linked to growth aspirations.
Working to achieve carbon neutral status for the Council’s operations.

Community Outcomes:

To ensure the provision of high-quality community facilities which meet community need. ensure the provision of high-quality community facilities which meet community need.
To protect our residents’ health and facilitate healthier lifestyle choice.

Environmental Outcomes:

Material selection, wherever possible locally sourced, carbon efficient production, longevity of materials will be considered when selecting finishes.
Upgrades to lighting and mechanical building elements will look to use low energy technology wherever feasible.

Other Options Rejected and Why:

Do not carry out any enhancement and accept the centre exactly as passed back – this would fail to optimise ability to rebrand to the community and modernise the offer to attract new customers, thus limiting the financial success of the centre. Failure to invest may be detrimental to the visual appearance and diminish customer experience/satisfaction.

Procurement route proposed and stage:

Once the works packages are known the services/products will be procured either as a series of small lots/individual items, or as a single enhancement package, in line with the council’s procurement policy and financial regulations, through seeking 3 quotes or
tender as appropriate.

Project Management Office support required?: No - These works will be managed by the Team Leader Leisure Contracts, Sport and Health.

Start date: August 2026

Completion date: not applicable

Capital Cost (total): £75,000

Year 1 2025/26: not applicable
Year 2 2026/27: £75,000

Capital Cost Breakdown

to be determined

Revenue cost per annum

not stated

Proposed Funding

External: not applicable
Internal: Regeneration and Community Projects Reserve

Useful Economic Life: 10 years

New or Replacements: New and replacement

Depreciation per annum: £7,500

Capital Financing Costs: £3,000 per annum

Residual Value: not stated

Category of Asset: Operational Land and Building

IFRS New Lease Checklist Completed: Checked

VAT Treatment Assessed: not applicable

Approval Required from: Council Budget Setting

Project Name: Rushcliffe Arena Enhancements

Cost Centre: 0415

Reference: 11

Project Lead: Communities Manager

Request for Project from: Communities Manager

Detailed Description:

Scheme to remove the Studio 3(Former Bowls Hall) parapet wall to make the space more inclusive and functional for events. The former bowls green is covered with wood flooring, leaving a gully around the perimeter and a parapet wall around the entire hall with only 4 access points in the four corners of the space which is less than ideal for inclusion and event set up. Since the decision to stop providing bowls due to declining demand, the space has gone from strength to strength, hosting fitness classes, Extreme Air, boxing events and
Council activity such at the Celebrating Rushcliffe Awards and Council Elections.

The business case has now been proven, and bowls will not return. Therefore, to improve the user experience even further, the removal of the parapet wall would allow flat level access throughout the space and improve functionality for users. To provide flat level access removing the parapet wall may also require some door alterations to the access doors and emergency exits which is yet to be determined at this time and requires detailed surveys to define the scope of the scheme.

Location: Rushcliffe Arena, West Bridgford

Director: Neighbourhoods

Contribution to the Council's aims and objectives

Corporate Priorities:
Quality of Life
Efficient Services
The Environment
Sustainable Growth
Strategic Commitments:
Protecting our residents’ health and facilitating healthier lifestyle choices.
Provide high quality community facilities which meet the needs of our residents and contribute towards the financial independence of the Council.
Ensuring well maintained facilities to support growing populations and increased usage
Creating opportunities for young people to realise their potential.
Ongoing appraisal and alignment of resources linked to growth aspirations.
Working to achieve carbon neutral status for the Council’s operations.

Community Outcomes:

To ensure the provision of high-quality community facilities which meet community need.
To protect our residents’ health and facilitate healthier lifestyle choice.

Environmental Outcomes:

The works will aim to use local contractors were possible to minimise miles travelled. The waste material such as brick will be recycled, and replacement materials or carpets will be sources with the lowest carbon footprint.

Other Options Rejected and Why:

The council could decide to do noting and maintain the status quo; however, this does nothing to address the users experience and limits opportunities to maximise revenue opportunities in the space.

Procurement route proposed and stage:

This will be designed and procured with the internal property and estates department in conjunction with Nottinghamshire County Council’s procurement team.

Project Management Office support required?:

It is proposed that this project is managed internally by the Team Manager for Health and Leisure Contracts in conjunction with Property and Estates and Parkwood Leisure.

Start date: May / June 2026

Completion date: July 2026

Capital Cost (total): £50,000

Year 1 2025/26: not applicable
Year 2 2026/27: £50,000

Capital Cost Breakdown

Works: £47,500
Equipment: not applicable
Other: not applicable
Fees: £2,500

Revenue cost per annum

Additional income expected, not yet quantified.

Proposed Funding

External: not applicable
Internal: Regeneration and Community Projects Reserve

Useful Economic Life: Remaining life of Arena building.

New or Replacements: Replacement

Depreciation per annum: will form part of Arena building depreciation.

Capital Financing Costs: £2,000 per annum

Residual Value: not applicable

Category of Asset: Operational Land & Building

IFRS New Lease Checklist Completed: not applicable

VAT Treatment Assessed: not applicable

Approval Required from: Council Budget Setting

Project Name: Play Areas - West Bridgford (Special Expense)

Cost Centre: 0664

Reference: 12

Project Lead: Communities Manager

Request for Project from: Rushcliffe Play Strategy

Detailed Description: x

The priority project for 2025/26 is West Park Children’s Play Area and Teen facility, this
will include some accessible improvements.

For 2026/27, it is hoped will be looking at individual pieces of play equipment and safety
surfacing across all the West Bridgford play sites to replace end of life equipment and
safety surfacing with new equipment and surfacing to improve including and
accessibility aligned with our play strategy.

West Park Play area and Teen Area

In 2025/26 financial year we will look to refurbishment the existing play area by replacing the wet pour safety surfacing and some refurbished or replaced equipment on the Junior Play and then replacing the existing half ball court and dynamic equipment with a
standard MUGA to improve the surface and reduce ongoing maintenance to bark area.

West Park site

The new MUGA will replace the half ball court and dynamic play equipment area, the works would also include a refurbishment of the existing Teen Shelter.

2026/27

The 2026/2027 programme will not necessarily focus on a one out and one in project but will instead be informed by undertaking a full audit of all the special expenses play provision and safety surfacing across all sites and aim to replace end of life equipment and surfacing across multiple sites instead of focussing on one of the lesser used sites. The replacement equipment and surfacing will aim to be more inclusive following the refreshed play strategy guidance and will also take pressure off the revenue repairs budget over the financial year.

Location: West Bridgford

Director: Neighbourhoods

Contribution to the Council's aims and objectives

Corporate Priorities
Quality of Life
Efficient Services
The Environment
Strategic Commitments:
Protecting our residents’ health and facilitating healthier lifestyle choices.
Provide high quality community facilities which meet the needs of our residents.
Creating opportunities for young people to realise their potential.
Delivering a scheme refurbishment identified within the Rushcliffe Play Strategy.
Working to achieve carbon neutral status for the Council’s operations.

Community Outcomes:

To ensure the provision of high-quality community facilities which meet community need.
To protect our residents’ health and facilitate healthier lifestyle choice.
To provide a facility to engage with young people who may otherwise not take part in formal sports or physical activity.

Environmental Outcomes:

The tender process will take into consideration supply chain, Carbon reduction measures from the supplier use of materials to procure the most sustainable play facility for the community.

Other Options Rejected and Why:

Doing nothing would result in increased maintenance costs for ageing equipment, reduced appeal of the play areas leading to lower levels of use and be inconsistent with the vision of high-quality parks and leisure facilities. A lack of replacement programme would over time lead to an increased health and safety risk.

Procurement route proposed and stage:

ESPO Framework tender for larger schemes that has the 12 leading play manufacturers on it. The procurement will be supported by Nottinghamshire Councils procurement team and project managed by VIA East Midlands.

Project Management Office support required?: Yes

Due to lack of internal capacity or expertise within the property and Estates team we propose to use the tried and trusted project management relations established with VIA East Midlands over the last 5 years, who provide procurement and project management
support through to completion.

Start date: April 2025

Completion date: March 2027

Capital Cost (total): £200,000

Year 1 2025/26: £100,000
Year 2 2026/27: £100,000

Capital Cost Breakdown

Works: £182,000
Equipment: not applicable
Other: not applicable
Fees: £18,000

Revenue cost per annum

Not stated

Proposed Funding

External: not applicable
Internal: Regeneration and Community Projects Reserve (Special Expense)

Useful Economic Life: 15 years

New or Replacements: Replacement and new

Depreciation per annum: £6,700 2025/26, plus £6,700 2026/27

Capital Financing Costs: Nil as funds raised through West Bridgford Special Expense

Residual Value: not applicable

Category of Asset: Land and Buildings / Equipment

IFRS New Lease Checklist Completed: not applicable

VAT Treatment Assessed: not applicable

Approval Required from: Council Budget Setting

Project Name: Rushcliffe Country Park Enhancements

Cost Centre: 0504

Reference: 13

Project Lead: Communities Manager

Request for Project from: Neighbourhoods Feedback / Communities Manager

Detailed Description:

Rushcliffe Country Park Footpath rolling investment programme.

Rushcliffe Country Park will be 32 years old in 2026 and up to 2022 had a passive management of the paths, by filling potholes and spreading some material in worn areas over the last 30 years.

In 2022 the council began to proactively manage the 8km of paths by undertaking some path resurfacing work. This has enabled a specialist contractor to tackle the poorest and most heavily trafficked paths sections in the park in priority order to improve the overall quality and longevity of these sections. It also as re-instated the camber in the paths to support rainwater runoff and tackled stretching in sections where the path appears bigger than intended so the path return to its original intended state.

The works in 2026/27 will amongst other areas focus on the orbital path around the lake with the aim to provide as inclusive a surface as possible for those visiting the park with mobility issues and compliment the café areas and Changing Places toilet provision.

Location: Rushcliffe Country Park, Ruddington

Director: Neighbourhoods

Contribution to the Council's aims and objectives

Corporate Priorities:
Quality of Life
Efficient Services
Strategic Commitments:
Protecting our residents’ health and facilitating healthier lifestyle choices.
Provide high quality community facilities which meet the needs of our residents and contribute towards the financial independence of the Council.
Creating opportunities for young people to realise their potential.
Ongoing appraisal and alignment of resources linked to growth aspirations.

Community Outcomes:

To ensure the provision of high-quality community facilities which meet community need.
To protect our residents’ health and facilitate healthier lifestyle choice.

Environmental Outcomes:

The tender process will take into consideration supply chain, Carbon reduction measures from the supplier use of materials to procure the most sustainable outdoor facility for the community.

Other Options Rejected and Why:

Doing nothing would put at risk the operational performance and efficiency of the facility, reducing customer experience/satisfaction and, in turn, reduce revenue income.

Procurement route proposed and stage:

We would aim to get three quotes for the surfacing but have struggled in the past with getting three companies to quote.

Project Management Office support required?:

It is envisaged that this project will be managed by the Country Park Manager with the support of the Communities’ Manager in house.

Start date: April 2026

Completion date: April 2026

Capital Cost (total): £25,000

Year 12025/26: not applicable
Year 2 2026/27: £25,000

Capital Cost Breakdown - to be determined

Works: £23,000
Equipment: not applicable
Other: not applicable
Fees: £2,000

Revenue cost or savings per annum

Not stated

Proposed Funding

External: not applicable
Internal: Capital receipts

Useful Economic Life: 15 years

New or Replacements: Replacement

Depreciation per annum: £1,600

Capital Financing Costs: £1,000 per annum as opportunity cost of lost interest

Residual Value: not applicable

Category of Asset: Infrastructure

IFRS New Lease Checklist Completed: not applicable

VAT Treatment Assessed: not applicable

Approval Required from: Council Budget Setting

Project Name: Rushcliffe Country Park Play Area

Cost Centre: 0412

Reference: 14

Project Lead: Communities Manager

Request for Project from: Neighbourhoods Feedback / Communities Manager

Detailed Description:

Rushcliffe Country Park Play Area Inclusive Enhancements

The scheme will complement the recent play development with additional inclusive elements aligned with the Council’s Play Strategy to make the Country Park, which is the Council’s destination NEAP (Neighbourhood Equipped Area for Play) Play area, the most inclusive and development centred provision in the Borough.

Our aim is to capture the imagination of every visitor through inventive designs and inclusive play.

Location: Rushcliffe Country Park, Ruddington

Director: Neighbourhoods

Contribution to the Council's aims and objectives

Corporate Priorities:
Quality of Life
Efficient Services
Strategic Commitments:
Protecting our residents’ health and facilitating healthier lifestyle choices.
Provide high quality community facilities which meet the needs of our residents and contribute towards the financial independence of the Council.
Creating opportunities for young people to realise their potential.
Ongoing appraisal and alignment of resources linked to growth aspirations.

Community Outcomes:

To ensure the provision of high-quality community facilities which meet community need.
To protect our residents’ health and facilitate healthier lifestyle choice.

Environmental Outcomes:

The tender process will take into consideration supply chain, Carbon reduction measures from the supplier use of materials to procure the most sustainable play facility for the community.

Other Options Rejected and Why:

Doing nothing would put at risk the operational performance and efficiency of the facility, reducing customer experience/satisfaction and, in turn, reduce revenue income.

Procurement route proposed and stage:

Given the relatively low values, it is proposed to do direct awards for the playground
equipment to the play manufacturer who did the substantive play area to maintain
consistency of equipment and path works to the surfacing company that has done the
other path in the park and has a strong working relationship with the borough and have
proven best value on recent tender exercises.

The scheme aims to spend approximately:

£10,000 on inclusive equipment;
£10,000 on Porus Macadam surfacing including a small section of new path to provide a closer link to the toilets for those users with additional needs which then can have thermoplastic ground graphics applied for visual inclusion;
£1,000 on an additional inclusive gate;
£2,000 on a linking path; and
£2,000 on fees.

Project Management Office support required?: No

Start date: April 2025

Completion date: April 2025

Capital Cost (total): £25,000

Year 1 2025/26: £25,000
Year 2 2026/27: not applicable

Capital Cost Breakdown

Works: £23,000
Equipment: not applicable
Other: not applicable
Fees: £2,000

Revenue cost per annum

Not stated

Proposed Funding

External: not applicable
Internal: Capital receipts

Useful Economic Life: 15 years

New or Replacements: Replacement and new

Depreciation per annum: £1,600

Capital Financing Costs: 31,000 per annum as opportunity cost of lost interest

Residual Value: not applicable

Category of Asset: Equipment

IFRS New Lease Checklist Completed: not applicable

VAT Treatment Assessed: not applicable

Approval Required from: Council Budget Setting

Project Name: Edwalton Community Facility – Special Expense

Cost Centre: 0643

Reference: 15

Project Lead: Communities Manager

Request for Project from: Council's Corporate Strategy

Detailed Description:

Edwalton Community Facility

The Edwalton Community Hall proposals will form part of a new community focal point for the area as part of the Sharphill Sustainable Urban Extension (SUE). They will provide connections to the community parks and woods supporting environmental conservation projects, community groups and volunteers. Shown below as item 3 with its associated car parking, community orchard and allotments.

The community hall will complement existing community infrastructure, including the newly opened Rosecliffe Spencer Academy Primary School which would cater for larger group gatherings.

The proposed development will have a meeting room serving groups with a capacity of up to 40 people. The building will also include rangers/facilities office, storage, toilets, and kitchen facilities. It is also proposed to have externally accessed toilets for working parties using the woods and community groups that can be accessed when the main building is closed. The building will also have externally accessed storage for the allotment holders and Friends of Sharphill Wood to store materials which will improve co-ordination and the delivery of environmental based projects.

The Standard specifications we would like to see incorporated are:

External Standard Specification:

Traditional masonry cavity external walls with brick work outer leaf and block work inner leaf
Eaves height to be 3m to soffit minimum
Truss rafter roof construction with Decra pan tiled effect roof finish
Windows powered coated aluminium
Roller shutters to all glazed openings (Doors and windows)
External doors to the toilets and store rooms to be steel door sets.
PV panels to the southern roof slope
Paved area surrounding the building
Anti vandal rain water pipes
Anti vandal wall mounted bulk head fittings.

Internal Standard Specification:

Solid floor construction, either a ground bearing slab or a beam and block solution
Internal Walls, Plaster boarded ceilings with suitable paint finish
Non-Slip vinyl flooring throughout. Polyflor Safety
Entrance Matting. Burmatex
Lighting, LED lighting throughout with PIR controls
Air source heat pump for space heating and domestic hot water
Ventilation to the kitchen and toilets
All domestic water services to be mains fed except for the hot water calorifier.

Location: Edwalton

Director: Neighbourhoods

Contribution to the Council's aims and objectives

Corporate Priorities:
Quality of Life
Efficient Services
The Environment
Strategic Commitments:
Provide high quality community facilities which meet the needs of our residents and contribute towards the financial independence of the Council.
Responsible income generation where deemed appropriate, to facilitate the delivery of services.
Ongoing appraisal and alignment of resources linked to growth aspirations.
Reviewing our policies and ways of working to protect natural resources, and to implement environmentally beneficial infrastructure changes.
Working to achieve carbon neutral status for the Council’s operations.

Community Outcomes:

To provide additional community infrastructure.
Ensuring we are maximising our property holdings and aligning them with the needs of residents. Properties may be held for operational purposes, for community use, or for investment purposes.

Environmental Outcomes:

The Edwalton Community building would be built to the latest building regulations and environmental standards, it is proposed to have solar PV to its southern roof elevation and an air source heat pump to ensure it is minimising its Carbon Footprint. One of the key objectives of the building is to support community projects and groups to conserve and protect Sharphill Woods and the associated community parkland that will be created.

Other Options Rejected and Why:

The Authority could decide not to progress the project, but this would not address the community need identified in the area.

Procurement route proposed and stage:

It is proposed the project will be split into two elements: one which is the land transfer and then a direct award JCB build contract.

Project Management Office support required?:

Yes, full project Management support will be required for the newly established Project Corporate Project team and also provided by the Communities’ Manager.

Start date: to be determined

Completion date: not stated

Capital Cost (total): £840,000

Year 1: £840,000
Year 2: not applicable

Capital Cost Breakdown - to be determined

Works: £750,000. Additions to building specification - £25,000. Total £775,000
Equipment: not applicable
Other: Awaiting formal advice on Stamp Duty. Liability not expected but would be approximately £32,000
Fees: £65,000 - Legal £25,000, Clerk of Works £20,000, External advice £20,000

Revenue cost per annum

Year 1: 2025/26 - £30,000
Year 2: 2026/27 - £30,000
Year 3: 2027/28 - £30,000
Year 4: 2028/29 - £30,000
Year 5: 2029/30 - £30,000

Proposed Funding

External: not applicable
Internal: £250,000 New Homes Bonus; £590,000 Capital Receipts in the first instance repayable by annuity. Climate Change
elements to be determined and assessed for funding from the specific reserve.

Useful Economic Life: 40 years

New or Replacements: New

Depreciation per annum: £21,000

Capital Financing Costs: £33,600

Residual Value: not applicable

Category of Asset: Operational Land and Buildings Special Expense

IFRS New Lease Checklist Completed: to be assessed

VAT Treatment Assessed: Yes, exercise Option to Tax

Approval Required from: Council Budget Setting

Project Name: Information Systems Strategy

Cost Centre: 0596

Reference: 16

Project Lead: Strategic ICT Manager

Request for Project from: Rolling Capital Programme

Detailed Description:

An emerging strategy will therefore exist enabling an agile approach to operational delivery, taking advantage of new proven developments. The ICT Technical Delivery Plan details all technical projects, and the schedule for implementation, during the lifetime of the ICT Strategy.

Location: Rushcliffe Arena, West Bridgford

Director: Finance and Corporate Services

Contribution to the Council's aims and objectives

Corporate Priorities:
Efficient Services
Quality of Life
Protecting the Environment
Digital-by Design
Strategic Commitments:
Ongoing appraisal and alignment of resources linked to growth aspirations.
Include digital principles in our communications and ways of undertaking business.
Working to achieve carbon neutral status for the Council’s operations.
Continue to invest in Cloud Services to enhance the Councils Business Continuity Plans and provide support for ‘Smarter Ways of Working’ policies.
People and Technology working together to provide efficiencies and remove barriers to simplify the Council’s operations.

Community Outcomes:

• To ensure that we make best use of digital development where appropriate to deliver better
services and operate more efficiently.
• To enable residents to do business with us in a digital way if that is their preference.
• To use public spend in an efficient and economical way.

The ICT Strategy is closely aligned to the Council’s “Four Year Plan” reviews and ICT will be instrumental in delivering the outcomes identified during these reviews. The Strategy will deliver:

People and Smarter Ways of Working.
- With a focus on people and their experience when accessing Council services. Investing time to find the correct and appropriate solution, which provides efficient and economic systems across the Council. To bring people along the journey and promote flexible, remote and agile solutions, and digital transformation programmes that take advantage of self-service initiatives, intelligent automation (IA), and artificial intelligence (AI). Key elements are people and the use of technology as an enabler and improving customer service and experience.
Business Continuity, Cloud Services and Hybrid Technologies
- Continue to improve business continuity arrangements and underpin other strategic objectives and their success. Seek opportunities to use cloud services to improve access and resilience for our residents and staff accessing Council services. Recognising when Hybrid technologies can be used to accommodate for complex and flexible solutions.
Information Management and Governance, and Security
- To safeguard Council data by ensuring legislative, central government security standards are followed and using security and privacy by design principles.
Think Green
- To be aware of and help achieve local net zero targets from energy efficiency savings when upgrading existing or implementing new systems. To report on energy usage and seek out opportunities to provide positive impact on carbon
  reduction.
Collaboration and Partnerships
- Continue to work closely with other authorities, establishing effective partnerships to share common challenges for efficient outcomes.

Environmental Outcomes:

When new infrastructure or ICT equipment is procured, power consumption forms part of the decision making when assessing quality of products. The supplier is also reviewed to see what their carbon footprint is and will add to the Council’s.

Other Options Rejected and Why:

Every project is the subject of a proposal or business case to be presented to, and approved by, the Executive Manager for the corresponding Service Area to ensure that the most appropriate IT solution is chosen, having due regard to the alignment of
technologies already in use across other local authorities, value for money and resilience. The option of not doing so would lead to outdated or incompatible technology, which would result in lower performance, higher maintenance costs and hinder the drive for greater efficiencies.

Procurement route proposed and stage:

Schemes will be procured in line with procurement rules, utilising the Framework where possible, with open tenders where necessary.

Project Management Office support required?: No

Start date: Ongoing

Completion date: Ongoing

Capital Cost (total): £488,000

Year 1 2025/26: £368,000
Year 2 2026/27: £120,000

Capital Cost Breakdown

Works: not applicable
Equipment: £448,000
Other: £40,000
Fees: not applicable

Revenue cost savings per annum

Not stated

Proposed Funding

External: not applicable
Internal: Regeneration and Community Projects Reserve and Organisation Stabilisation Reserve

Useful Economic Life: 3 years

New or Replacements: New and replacement

Depreciation per annum:

£123,000 in 2024/25, plus
£40,000 in 2025/26

Capital Financing Costs: £19,500

Residual Value: Nil

Category of Asset: Intangible Assets and Equipment

IFRS New Lease Checklist Completed: not applicable

VAT Treatment Assessed: not applicable

Approval Required from: Council Budget Setting

Appendix 4 - Use of Earmarked Reserves in 2025/26

Earmarked Reserves
Description	Projected Opening Balance	Projected Income	Projected Expenditure	Net Change in Year	Notes	Projected Closing Balance
Investment Reserves	-	-	-	-	-	-
Regeneration and Community Projects	£3,506,000	£333,000	(£793,000)	(£460,000)	1	£3,046,000
Sinking Fund - Investments	£810,000	£200,000	(£366,000)	(£166,000)	2	£644,000
New Homes Bonus (NHB)	£8,131,000	£1,478,000	(£1,424,000)	£54,000	3	£8,185,000
Corporate Reserves	-	-	-	-	-	-
Organisation Stabilisation	£4,533,000	£3,550,000	(£373,000)	£3,177,000	4	£7,710,000
Treasury Capital Depreciation Reserve	£1,173,000	0	0	0	-	£1,173,000
Collection Fund S31	0	0	0	0	-	0
Climate Change Action	£918,000	0	(£100,000)	(£100,000)	5	£818,000
Flood Grant and Resilience	£22,000	0	0	0	-	£22,000
Freeport Reserve	0	0	0	0	-	0
Simpler Recycling Reserve	£1,020,000	£1,407,000	(£1,982,000)	(£575,000)	6	£445,000
Vehicle Replacement Reserve	£605,000	£185,000	(£330,000)	(£145,000)	7	£460,000
Risk and Insurance	£100,000	0	0	0	-	£100,000
Planning Appeals	£349,000	0	0	0	-	£349,000
Elections	£101,000	£50,000	0	£50,000	8	£151,000
Operating Reserves	-	-	-	-	-	-
Planning	£131,000	£29,000	(85,000)	(56,000)	9	£75,000
Leisure Centre Maintenance	0	£15,000	(15,000)	0	10	0
Total Earmarked Reserves	£21,399,000	£7,247,000	(£5,468,000)	£1,779,000	-	£23,178,000

Notes:

Regeneration and Community Projects
- Income:
  - £168,000 from Special Expenses and Annuity Charges;
  - £165,000 to create sinking funds for: Skateparks,
    Gresham Pitches, Crematorium, and Edwalton Golf Course.
- Expenditure -
  - £283,000 IT;
  - £200,000 KLC;
  - Play Areas £100,000;
  - Contingency £150,000;
  - Highways Verges £60,000.
Sinking Fund - Investments
- Income:
  - £200,000 from profit to create sinking funds for Investment Properties including Bridgford Hall.
- Expenditure:
  £200,000 Manvers BP Enhancements;
- £70,000 Cotgrave business Hub;
- £30,000 Walkers Yard 1a/b and 3;
- £25,000 Bridgford Kiosk;
- £25,000 the Point; and
- £16,000 Colliers Business Park.
New Homes Bonus (NHB)
- Income:
  - £1,478,000 NHB in year.
- Expenditure:
  - £1,174,000 to offset MRP in year, and
  - £250,000 Edwalton Community Facility.
Organisation Stabilisation
- Income:
  - £3,550,000 estimated surplus in year.
- Expenditure:
  - £200,000 DFGs;
  - £70,000 Tourism/Signage;
  - £85,000 IT; and
  - £18,000 IT App Guard.
Climate Change Action
- Expenditure - £100,000 Streetwise Depot decarbonisation works
Simpler Recycling Reserve
- Income:
  - £1,407,000 EPR Government Grant.
- Expenditure:
  - £1,710,000 Kerbside Glass Recycling Capital;
  - £272,000 Revenue
Vehicle Replacement Reserve
- Income:
  - £185,000 to top up Vehicle Replacement Reserve;
- Expenditure:
  - £330,000 to fund Vehicle Replacements.
Elections
- Income:
  - £50,000 to top up Elections Reserve.
Planning
- Income - £29,000 to top up the reserve. Expenditure - £85,000 to meet Local Plan Costs.
Leisure Centre Maintenance
- Income:
  - £15,000 sinking fund for Athletics Track/Hockey Pitch old BLC;
- Expenditure:
  - £15,000 Athletics Track/Hockey Pitch.

Appendix 5 Proposed Pricing Schedules (Car Parking and Garden Waste)

Car Parking

West Bridgford Car Park charges
West Bridgford Car Parks	Current Charges £	Revised Charges £	% Increase
Up to 30 minutes	0.70	0.70	0%
Up to 1 hour	1.20	1.20	0%
Up to 1.5 hours	1.70	2.00	18%
Up to 2 hours	2.50	2.80	12%
Up to 2.5 hours	3.00	3.50	17%
Up to 3 hours	3.50	4.00	14%
Over 3 hours	30.00	30.00	0%

Garden Waste

Garden Waste Bin charges
Bins	Current £	2025/26 £	2026/27 £	2027/28 £	2028/29 £	2029/30 £
First bin	£45.00	47	49	51	53	55
Second and subsequent bin	30	37	44	46	48	50

Appendix 6 - Pay Policy Statement 2025/26

1. Introduction

1.1 This Statement sets out the Council’s policies in relation to the pay of its workforce, particularly its Senior Officers, in line with Section 38 of the Localism Act 2011. The Statement is approved by full Council each year and published on the Council’s website demonstrating an open and transparent approach to pay policy.

1.2 This Statement draws together the Council’s policies relating to the payment of the workforce particularly:

Senior Officers
Its lowest paid employees; and
The relationship between the pay of Senior Officers and the pay of other employees.

1.3 For the purposes of this statement ‘pay’ includes basic salary, pension and all other allowances arising from employment.

2. Objectives of this Statement

2.1 This Statement sets out the Council’s key policy principles in relation to pay evidencing a transparent and open process. It does not supersede the responsibilities and duties placed on the Council in its role as an employer and under employment law. These responsibilities and duties have been considered when formulating the Statement.

2.2 This Statement aims to ensure the Council’s approach to pay attracts and retains a high performing workforce whilst ensuring value for money. It sits alongside the information on pay that the Council already publishes as part of its responsibilities under the Code of Practice for Local Authorities on Data Transparency. Further details of this information can be found on the Role and Remuneration webpage.

3. Senior Officers

3.1 For the purposes of this Statement, Senior Officers are defined as those posts with a salary above £50,000 in line with the Local Government Transparency Code 2015. Using this definition Senior Officers within Rushcliffe currently consists of 11 posts out of an establishment of 317 The posts are as follows:

Chief Executive
Director – Finance and Corporate Services (Section 151 Officer)
Director - Development and Economic Growth
Director - Neighbourhoods
Head of Service – Chief Executive's Department and Monitoring officer
Head of Service – Finance
Head of Service – Corporate Services
Head of Service – Economic Growth and Property
Head of Service – Planning
Head of Service – Neighbourhoods
Head of Service – Public Protection

4. The Policies

4.1 The Council consults when setting pay for all employees. The Council will meet or reimburse authorised travel, accommodation and subsistence costs for attendance at approved business meetings and training events. The Council does not regard such costs as remuneration but as non-pay operational costs.

5. Pay of the Council’s Lowest Paid Employees

5.1 The total number of Council employees is presently 317. The Council has defined its lowest paid employees by taking the average salary of five permanent staff on the lowest pay grade the Council operates, who are not undergoing an apprenticeship. On this basis the lowest paid full-time equivalent employee of the Council earned £23,556. The Council currently pays £12.21 per hour for its lowest paid employees.

5.2 The Council does not explicitly set the pay of any individual or group of posts by reference to a pay multiple. The Council feels that pay multiples cannot capture the complexity of a dynamic and highly varied workforce in terms of job content, skills and experience required. In simple terms, the Council sets different levels of basic pay to reflect differences in levels of responsibility. Additionally, the highest paid employee of the Council’s salary does not exceed 10 times that of the lowest paid group of employees.

5.3 The Head of Paid Service, or their delegated representative, will give due regard to the published Pay Policy Statement before the appointment of any Officers. Full Council will have the opportunity to discuss any appointment of Statutory Officer roles before an offer of appointment is made, in line with the Council’s Officer Employment procedure rules within Part 4 of the Council’s Constitution. Appointment to Director level is via a member employment panel.

6. Additional Payments Made to Chief Officers – Election Duties

6.1 The Chief Executive is nominated as the Returning Officer. In accordance with the national agreement, the Chief Executive is entitled to receive and retain the personal fees arising from performing the duties of Returning Officer, Acting Returning Officer, Deputy Returning Officer or Deputy Acting Returning Officer and similar positions which they perform subject to the payment of pension contributions thereon, where appropriate.

6.2 The role of Deputy Returning Officer may be applied to any other post and payment may not be made simply because of this designation. Payments to the Returning Officer are governed as follows:

for national elections, fees are prescribed by legislation;
for local elections, fees are determined within a local framework used by other district councils within the county. This framework is applied consistently and is reviewed periodically by lead Electoral Services Officers within Nottinghamshire. This includes proposals on fees for all staff employed in connection with elections. These fees are available for perusal on the Council’s website on the Election Fees page.

6.3 As these fees are related to performance and delivery of specific elections duties, they are distinct from the process for the determination of pay for Senior Officers. The fees have been reviewed for 2025/26 and agreement made that the fees will increase annually in line with the national pay award.

Appendix to the Pay Policy - Policies on other aspects of pay

Process for setting the pay of Senior Officers

The pay of the Chief Executive is based on an agreed pay scale which is agreed by Council prior to appointment. Changes to this are determined by the Leader, Deputy Leader and Leader of the Opposition, who are advised by an agreed external professional and the Strategic Human Resources Manager.

The pay of all Officers including Senior Officers is determined by levels of responsibility, job content and the skills and experience required. Consideration is also given to benchmarking against other similar roles, market forces and the challenges facing the authority at that time and to maximise efficiency. The pay of these posts is determined through the Chief Executive, or their nominated representative, in consultation with the Strategic Human Resources Manager and in line with the Council’s pay scales and its agreed scheme of delegation.

The Council moved away from the national conditions of service in 1990 and pay scales are set locally.

As with all employees, the Council would look to appoint on the best possible terms to secure the best candidate for the job. However, there are factors that could influence the rate offered to an individual, including the relevant experience of the candidate, their current rate of pay and market forces.

All Senior Officers are expected to devote the whole of their service to the Authority and are excluded from taking up additional business, ad hoc services or additional appointments without consent as set out in the Councils code of conduct.

Terms and Conditions - All Employees

All employees are governed by the local terms and conditions as set out in the Employee handbook.

Local Government Pension Scheme

Every employee is automatically enrolled into the Local Government Pension Scheme. Employer and employee contributions are based on pensionable pay, which is salary plus, for example, shift allowances, bonuses, contractual overtime, statutory sick pay, and maternity pay as relevant.

For more comprehensive details of the local government pension scheme see: Local Government Pension Scheme and Nottinghamshire Pension Fund.

Neither the scheme nor the Council adopt different policies with regard to benefits for any category of employee and the same terms apply to all staff. It is not normal Council policy to enhance retirement benefits but there is flexibility contained within the policy for enhancement of benefits and the Council will consider each case on its merits.

Car Allowances

The Council pays mileage rates at HMRC recommended rates.

Pay Increments

Where applicable pay increments for all employees are paid on an annual basis until the maximum of the scale is reached. The Chief Executive, or their nominated representative, has the discretion to award and remove increments of officers’ dependant on satisfactory or unsatisfactory performance.

Relocation Allowance

Where it is necessary for a newly appointed employee to relocate to take up appointment, the Council may make a contribution towards relocation expenses. The same policy applies to Senior Officers and other employees. Payment will be made against a range of allowable costs for items necessarily incurred in selling and buying a property and moving into the area. The costs include estate agents’ fees, legal fees, stamp duty, storage and removal costs, carpeting and curtains, short term rental etc. The Council will pay 80% of some costs and 100% of others or make a fixed sum available. If an employee leaves within two years of first employment, they may be required to reimburse a proportion of any relocation expenses.

Professional fees

The Council currently meets the cost of professional fees and subscriptions for employees where it is a requirement of their employment or their contract.

Returning Officer Payments

In accordance with the national agreement the Chief Executive is entitled to receive and retain the personal fees arising from performing the duties of returning officer, acting returning officer, deputy returning officer or deputy acting return officer and similar positions which they performs subject to the payment of pension contributions thereon, where appropriate.

Fees for returning officer and other electoral duties are identified and paid separately for local government elections, elections to the UK Parliament and other electoral processes such as referenda. As these relate to performance and delivery of specific elections duties, they are distinct from the process for the determination of pay for Senior Officers.

Managing Organisational Change Policy

The Council has a Managing Organisation Change Policy which was originally agreed by Council in March 2007 and is regularly reviewed. The Council also has policies related to redundancy payments which is based on the length of continuous local government service, which is used to determine a multiplier, which is then applied to actual pay.

The policy provides discretion to enhance the redundancy and pension contribution of the individual and each case would be considered taking into account individual circumstances. Copies of the policies are available on the Council’s website.

Payments on termination

The Council does not provide any further payment to employees leaving the Council’s employment other than in respect of accrued leave, which by agreement is untaken at the date of leaving, or payments that are agreed or negotiated in line with current employment law practices.

Publication of information relating to remuneration of Senior Officers

The Pay Policy Statement will be published annually on the Council’s website following its approval by full Council each year.

Gender Pay gap reporting

The Council publishes its Gender Pay Gap information annually on the Council’s website and on the Government's website.

Appendix 7 Transformation Strategy and Efficiency Plan 2025/26 to 2029/30

Introduction

The Council has had a Transformation Plan since 2010 and widened this to incorporate other efficiencies. The purpose of the Transformation and Efficiency Plan (TEP) is a measured approach to meeting the emerging financial challenges. The plan was written to identify cost efficiencies, increase income opportunities and develop transformational alternatives for the future delivery of services. This Transformation and Efficiency Plan also constitutes what was the previous Government’s requirements for a Productivity Plan. This plan covers four key themes:

Transformation of services to make better use of resources
Take advantage of advances in technology
Reduce wasteful spend within systems or, for example, on consultants
Barriers preventing activity that the Government can help to reduce or remove

The Transformation Programme since its inception and going forward aims to support the delivery of over £7,600,000 in efficiencies. The following are guiding principles used, to identify ways to make efficiencies through the Transformation and Efficiency Plan:

Where possible individuals that use facilities should pay for them
Maximise income where we can and ensure costs are recovered
Focus on reducing discretionary expenditure
Continue to identify budget expenditure efficiencies
Maximise the use of Council assets
Digital by design programme and other innovations

The aim is to achieve this without significantly impacting on service quality or resident satisfaction. Our latest resident polling data shows us that 82% of residents are satisfied with Rushcliffe as a place to live and 61% of residents are satisfied with the way the Council runs
its services. (2024).

The TEP is updated each year and sets out the Council’s approach to making further savings between now and 2029/30, projects are summarised in Appendix B. It also explains our approach to identifying and working with partners, recognising and maximising opportunities, and leading the way in delivering high quality services that match the needs of residents. It is clear that as the organisation becomes leaner, it will become increasingly challenging to find further savings. Achieving the increased targets requires a bolder and more strategically focussed way of thinking. However with the Local Government Reorganisation expected within the five-year Medium Term Financial Strategy (MTFS) period, the focus of transformation, and the resources required, are likely to switch to transitioning to a new authority. The plan will evolve when we know more.

Addressing the Funding Gap

The most significant achievement of the TEP in recent years is the delivery in 2023 of both the Rushcliffe Oaks Crematorium and the Bingham Arena and Enterprise Centre. Despite the challenges on Council resources as a result of Covid and international conflict, these projects were delivered on time and with savings against budget and will continue to make a significant contribution to the growing financial pressures during this MTFS period and help to deliver socio-economic benefits.

The Council continues to constrain spending and increase income where possible but also continues to review how it delivers its services for potential efficiency savings and to investigate opportunities for further transformation projects. Already lean budgets coupled with Inflation, National Insurance increases and policy changes such as Simpler Recycling and Extended Producer Responsibility places pressure on costs, making this a more challenging endeavour.

The Council has identified additional service efficiencies and income generating opportunities for 2025/26 onwards, see Appendix B. Decisions which help to reduce the budget requirement include; a review of the Council’s leisure contract, the relocation of the Customer Contact Centre in 2024 with savings on rent and running costs, the home alarms digitalisation project, increases in garden waste charges and long stay car parking changes. A collaboration with Nottinghamshire County Cricket Club to increase the use of leisure facilities at West Park is set to deliver additional income from 2026/27.

The impact of high inflation rates and reduced funding, means that the council has a need to draw on reserves, however due to savings identified this has been mitigated to a value of £172,000 over the five-year period to 2029/30 (subject to risks outlined in the MTFS).

Savings Targets

Savings Targets
Category	2025/26	2026/27	2027/28	2028/29	2029/30
Gross Budget Deficit excluding Transformation Plan	£3,107,000	£8,133,000	£8,248,000	£8,326,000	£8,281,000
Cumulative Savings in Transformation Plan	(£5,833,000)	(£6,658,000)	(£6,972,000)	(£7,189,000)	(£7,509,000)
Gross Budget Deficit / (Surplus)	(£2,726,000)	£1,475,000	£1,276,000	£1,137,000	£772,000
Additional Transformation Plan savings	(£824,000)	(£314,000)	(£218,000)	(£320,000)	(£86,000)
Net Budget Deficit / (Surplus)	(£3,550,000)	£1,161,000	£1,058,000	£817,000	£686,000
Cumulative additional Transformation savings	(£824,000)	(£1,138,000)	(£1,356,000)	(£1,676,000)	(£1,762,000)

Partnering arrangements are pursued where this results in efficiencies. Existing examples are;

Building Control partnership with South Kesteven and Newark & Sherwood,
Payroll with Gedling Borough Council,
Procurement provision by Nottingham County Council,
Eastcroft Depot premises shared with Nottingham City Council,
the insourcing of Streetwise in 2022, and
part-outsourcing of the IT help desk in 2024 to the Cutter Group.

In March 2024 Nottinghamshire set up the East Midlands Combined County Authority (EMCCA) with a directly elected Mayor covering Derbyshire, Derby, Nottinghamshire and Nottingham. This was formed to improve the region through local funding and decision making,
as a result there may be additional opportunities for collaboration and funding to deliver efficiencies not yet included in the budget. In the coming years the advent of LGR will result in a whole new collaboration.

This Strategy can be revised at any time by Full Council and as part of our Capital and Investment Strategy reporting we must show the impact on our prudential indicators.

Rushcliffe's Core Operating Principles

Rushcliffe has three core principles which underpin its approach to transformation:

Income generation and maximisation
Business cost reduction
Service redesign

Transformation has been achieved to date by focusing on a ‘one’ Council approach and great teamwork between Councillors and officers to limit the impact upon residents. However, we recognise to be successful in bridging the remaining funding gap it will be necessary to consider and implement large scale transformational change which can generate a large fiscal impact.

The Transformation and Efficiency Plan is an evolving document and although it essentially covers the next five years, it should not be bound by time or scope. To this end and within the emerging complex environment, three partnership models have been identified to provide a framework to generate further efficiencies. These are covered in more detail in Appendix A.

An Integrated Approach to Transformation

This Strategy formalises the Council’s integrated approach to transformation. It highlights the work that has been, and continues to be, done to deliver over £7,600,000 by 2029/30 in efficiencies and formalises the Council’s principles of partnership working (detailed at Appendix A). At a strategic level it highlights the important relationship between:

The Council’s Corporate Strategy – which provides the overall direction of the Council, its core values and its four key priorities,

The Medium-Term Financial Plan – a defined plan of how the authority will work towards a balanced budget and maintain viability,

The Transformation and Efficiency Plan – a document providing direction in respect of the strategically focussed streams of work to meet the financial targets whilst fulfilling the Council’s corporate priorities.

This trio of documents can be influenced by external factors such as central government, public expectation and other stakeholders.

The Transformation and Efficiency Plan

This document details the different areas of work Officers and Councillors will focus upon to meet the stretching financial targets and requirements of the Productivity Plan whilst continuing to fulfil our corporate priorities. The diagram below highlights the different work
streams and shows how they fit together over the next five years. Underpinning the work we do undertake is a commercial culture. Impending LGR is a ‘thinking big’ item and will take-up significant council resource going forward.

Management Responsibility with Member Challenge

Each year, officers undertake an internal programme of investigations looking specifically at improving efficiency through different ways of working. We also challenge our budgets every year to drive out further savings whilst minimising the impact of front-line services. We have a strong leadership focused on corporate priorities using regular performance clinics to manage performance and budgets. We also ensure that every large-scale project (where there is deemed to be a significant impact on residents, staff, or budgets) has its own project board and governance structure. Activities are challenged through Leader and Portfolio Holder briefings and constituted and established processes such as Member Groups. Reports on policy changes are passed through the Cabinet, and our Corporate Overview Group and other scrutiny groups regularly scrutinise review findings. Additional Member Groups are created by Cabinet and Scrutiny Groups when required.

Service Efficiencies and Transformation of Services

The culture at Rushcliffe has been to ensure different services are reviewed regularly to make sure they are as focused upon the customer and as streamlined as possible, any identified inefficiency removed from the system and where appropriate services are moved online. The way the service is delivered is also investigated and consideration is given to potential partnership opportunities or alternative methods of delivery to protect the services that residents value without a pre-determined view. Headline efficiency targets have been identified for each area of the Council and these are illustrated at Appendix B.

Process Reviews and Technology

The Council introduced its digital by design strategy in 2019 with the objective of understanding the Council’s digital needs and delivering a programme of planned improvements. This strategy promoted four areas; Digital Culture, Efficiencies, Customer Satisfaction, and Security and Privacy, and successfully delivered a total of 18 projects. A cumulative savings of approx. £74,000 has been achieved in efficiencies per annum due to initiatives such as the ‘My Account’ portal for our residents, the Councillors portal for our
elected Members, improved website, new booking system, new workflow and automation, and Hybrid Mail. There will continue to be an improvement plan; however, future developments will be based on the new ICT Strategy 2025–2028.

The Council has a Fees and Charges Policy which aims to ensure that fees are set in a transparent and consistent manner. In the current economic climate, fees and charges offer an opportunity for the Council to maximise its financial position, and to achieve policy
objectives, for example by encouraging or discouraging the use of a service or to alter patterns of behaviour. The corporate charging policy covers: Which services should be subject to full cost recovery, and which should be met from the General Fund; Which services should be eligible for concessions within a broader equality and fairness framework; How charges relate to and support wider corporate priorities; and the impact of any competition and whether the Council is or should be competing with local businesses in the economy. Ultimately the balance between taxpayer and service user should be aligned. The diagram below demonstrates this principle.

Management Challenge and Reducing Waste

The Service Efficiencies are strengthened by on-going management of the services through regular performance clinics and a management challenge as part of the annual budget setting process – each Director is charged with scrutinising their budget to identify any additional savings or remove unused budget. Again, top level targets have been identified where appropriate, and these are illustrated in the table at Appendix B.

Members and Officers Working Together

The upper area of the diagram above focuses on activities where Members and officers work together to identify further savings and different ways of working. These aspects of the Strategy have been arrived at through our budget proposals which have continued to be
radical and challenging as we look at ways of bridging the financial gap by 2029/30. Budget update sessions (both this year and in the past), incorporating Members from all political groups, have looked at what has been achieved so far, policy changes that can be made
immediately to save money in the coming year, different ways of delivering services in the future, and more long-term options that could significantly change the face of the Council and the services it delivers.

Immediate savings

Each year, Members are presented with several policy changes which hit one or more of our core principles of income generation and maximisation, business cost reduction or service redesign. These operational changes form part of the budget setting process each year and generally result in savings or additional income for the following year(s).

Transformational Projects 2025-2030

As has already been mentioned above, this Strategy is a continuation of the Council’s original Transformation Programme and consequently, several key projects which influence service delivery and finances over the next few years are already in progress. Good progress has been made with new Transformational Projects as mentioned above.

Going forwards, two major transformation and efficiency projects are:

Leisure Strategy review
Additional income from garden waste and car parking charges

These schemes are embedded in the Corporate Strategy and fully embrace the Council’s four priorities:

Quality of Life
Efficient Services
Sustainable Growth
The Environment.

The Leisure strategy review will continue to ensure the Council provides high quality leisure facilities across the borough, that are affordable and accessible for residents whilst maximising the return to the Council to support its budget position and continue to provide such services. Additional income from fees and charges for garden waste and car parking to ensure that efficient services continue to be delivered whilst meeting rising costs.

Leisure Strategy Activation

The new Bingham Arena and Enterprise Centre opened in February 2023 giving even more added value for the taxpayer and the offices providing opportunities for small and growing businesses. Leisure Services continue to be improved, Keyworth and Cotgrave leisure
centres during 2024 and 2025, to improve carbon efficiency though green technology measures, further supporting the Council’s targets to be carbon neutral by 2030. The council has secured £1,200,000 external funding from SALIX to support these improvements. A short term extension to the Leisure Centre Management Contract to 2030 has been agreed and will deliver savings as per appendix B and will allow aligned of all of the Councils Leisure offering which may present opportunities to secure further efficiencies

Summary of the Transformation Strategy Work Programme

The Transformation and Efficiency Plan Work Programme for the next five years and a framework within which the required efficiencies will be delivered:

Leisure Strategy
Fees and Charges
Rushcliffe Oaks Crematorium
Streetwise Insourcing
Asset Review
Service Review and Efficiencies

Governance

Whilst this strategy establishes a framework and timeframe for the individual projects within the programme, arrangements are flexible to allow for unforeseen circumstances and redirection of resources to maximise opportunities as they arise. It is anticipated that these
same principles of agile working will apply to the 2025-2030 rolling Transformation Programme.

Each project within the programme has appropriate governance arrangements depending on the size, complexity, and risk. Overall, monitoring of the Strategy ultimately is reported Finance and Performance reports to both Cabinet and Corporate Overview Group and as necessary a relevant Scrutiny Group will take place quarterly by the Chief Executive and the Executive Management Team. Where it is required by individual projects, consultation, and engagement with members of the public will take place.

The following risks have been identified and will be monitored accordingly.

Funding Analysis for special Expense Areas
Risk	Probability	Impact	Mitigation
Reviews do not achieve anticipated savings	Probable	Greater than £250,000	Individual reviews where there is underachievement may be offset by others with higher savings. Regular reporting in budget papers.
Programme slippage	Possible	Greater than £250,000	Monitoring of programme and taking early corrective action.
Insufficient capacity to undertake the programme	Possible	Greater than £250,000	Procure extra resources – i.e. consultancy.
Insufficient interest from alternative providers	Possible	Negative	Find appropriate savings from direct service provision by quality reduction (probably).
Delay in anticipated savings or a reduction or removal of current savings due to external factors	Possible	Greater than £250,000	Accurate profiling of efficiencies. Close monitoring of the environment (e.g. rising prices) that may affect the feasibility of projects and regular reviews on the commercial market (e.g. rental demand) in order to assess likelihood of income falling.

Conclusion

The above sets out Rushcliffe’s plans over the next five years and the Council’s commitment towards delivering these plans. This plan supports the Council’s MTFS and is the vehicle upon which the Council will achieve a balanced budget. The Council is required to produce and publish a Productivity Plan and approval of this Strategy by Council satisfies this requirement.

Appendix A - Rushcliffe's Accepted Models of Partnership Working

Localised Integrated Working Partnerships

These types of integrated delivery partnerships involve working with other agencies and organisations whose services are delivered to Rushcliffe Borough residents. These partnerships are aimed at improving the connectivity of public services, public regulation, reducing the need to cross-refer people and issues.

Localised Integrated Working Partnerships result from:

Welfare Reform
Regulatory Services
Health and Social Care
Educational Welfare

The Government has recognised and begun to embrace the value of partnerships of scope and is increasingly looking to realise both financial and customer benefits from these. Central Government policies around community safety, health outcomes, welfare reform and community budget pilots, all demonstrate recognition of the importance of different agencies working together in a single locality to benefit their residents.

The Council’s Customer Services Team operates in locations across the Borough on a remote access basis in buildings operated by
partners such as libraries and health centres. The main Customer Service Centre is in West Bridgford library, the largest of the towns in Rushcliffe.

The service is delivered in Bingham where an integrated delivery service model has been deployed and is being delivered from its Health Centre. In addition, there are contact points in Cotgrave and East Leake located in libraries, supporting extended opening times of these facilities and providing increased remote access for the Customer Services Team.

There are also a range of projects underway involving our locality partners, which embed these principles and take services out into the community, including Positive Futures, Sunday Funday, Lark in the Park and Business Partnership events and networking.

Partnerships of Scale

This term describes two or more organisations joining together largely to benefit from economies of scale. These partnerships can, like localised integrated working partnerships, drive efficiencies but they may not, in themselves, directly improve the way in which the service is delivered to Rushcliffe Borough residents. Opportunities exist in this area to share back office services, such as payroll, reducing costs and removing duplication whilst maintaining and improving capacity and resilience.

If scale partnerships are to be successful, previous experience has shown that there is a greater chance for success if they cover a broad range of services but are focussed and aligned on a small number of culturally similar and willing partners. It is possible to develop these partnerships organically – that is, as opportunities arise.

Shared Service Delivery:

Professional Access/Influence
Economies of Scale
Capacity and Resilience
Future Employee Operating Models

As mentioned above, to date partnerships of scale have developed organically – the Council has been successful in developing a number of such partnerships in the past, of which the following, mostly back-office services, have come to fruition:

payroll services (Gedling),
building control (South Kesteven, Newark & Sherwood),
procurement (Nottinghamshire County Council),and
emergency planning (Nottinghamshire County Council).

Following continued encouragement from Central Government, there has been an increased willingness and determination from the Leaders within Nottinghamshire to forge closer partnerships of scale – agreement with Nottingham City Council to relocate Depot Services to operate out of Eastcroft, now housing a shared depot for refuse fleet maintenance. Further opportunities will be assessed as opportunities arise. The Council is actively involved with the East Midlands County Combined Authority (EMCCA) which may present opportunities for collaboration.

Partnerships for Governance

There has been a growth of place-based and themed partnership arrangements. These have largely been designed to implement and administer arrangements within defined areas focussed upon common objectives including: The Joint Planning and Advisory Board (Nottingham City, Nottinghamshire County Council, Broxtowe Borough Council, Gedling Borough Council, Erewash District Council and Rushcliffe Borough Council).

The Council is also working with partners on the power station site as part of the now approved East Midlands Freeport. along with East Midlands Airport and East Midlands Intermodal Park in South Derbyshire. To support the development of the site the Council worked with Uniper and others to adopt a Local Development Order for Ratcliffe on Soar, this is intended to accelerate the planning process to meet the challenging timescales of the EMF incentives.

The emergence and growth of other forums has restricted the representation and influencing role of individual districts. The Health and
Wellbeing Boards is a prime example of where representation is restricted to one district or borough council. However, Officers ensure that regular updates are received and sent between district and borough councils to keep colleagues informed and good relationships are maintained with these organisations so we remain aware of opportunities as they arise. However, to further combat this, other supporting arrangements are in place. For example, the Council has created the Strategic Growth Board, Development and Community Boards and task and finish groups focused on particular areas or themes to either facilitate local economic growth or deal with the challenges growth creates. There is also the City of Nottingham and Nottinghamshire Economic Prosperity Committee to drive future
investment in growth and jobs in the City and County. At a regional level there is a Development Corporation Board which focuses on, for example agreeing joint objectives, allocating resources and monitoring outcomes which will impact regionally.

Joint Committees / Partnerships:

Housing Growth
Employment
Business Growth
Infrastructure Delivery

As these develop, there will be an increasing reliance upon forging relationships which can influence outcomes for Rushcliffe residents; for example, agreeing key infrastructure requirements which benefit not only Rushcliffe but neighbouring boroughs, districts, and the
City. These models of partnership working provide a framework within which officers can be swift to take advantage of opportunities as they arise. They build upon our existing core principles model highlighted above and provide a clear map for the future. Going forward LGR will lead to a reset of relationships when a newly constituted local authority corporate entity is created.

Appendix B - Transformation Efficiency Plan

Transformation Efficiency Plan
Category	2025/26	2026/27	2027/28	2028/29	2029/30	Total
Thematic	-	-	-	-	-	-
Leisure Strategy	(£385,000)	(£33,000)	£17,000	(£5,000)	(£5,000)	(£411,000)
Crematorium	(£61,000)	(£70,000)	(£64,000))	(£40,000)	0	(£235,000)
West Park NCCC (Special Expense)	0	(£36,000)	£1,000	£1,000	-	(£34,000)
Customer Contact Centre	(£50,000)	(£1,000)	(£1,000)	(£1,000)	-	(£53,000)
Additional Income	-	-	-	-	-	-
Charging for New Bins	(£50,000)	-	-	-	-	(£50,000)
Car Parking	(£15,000)	-	-	(£100,000)	-	(£115,000)
Green Bin Scheme	(£98,000)	(£106,000)	(£100,000)	(£100,000)	-	(£404,000)
Green Bin Scheme (second and subsequent price increase)	(£34,000)	(£69,000)	(£71,000)	(£75,000)	(£81,000)	(£330,000)
Bingham Enterprise	-	(£8,000)	-	-	-	(£8,000)
Cotgrave Phase 2	(£1,000)	(£6,000)	-	-	-	(£7,000)
Marketing Services	£10,000	(£10,000)	-	-	-	0
Edwalton Golf Course	£21,000	-	-	-	-	£21,000
Home Alarms Digitalisation	(£97,000)	£26,000	-	-	-	(£71,000)
Car Parking - Bingham	(£11,000)	-	-	-	-	(£11,000)
Car Parking	(£84,000)	-	-	-	-	(£84,000)
Savings	-	-	-	-	-	0
Public Conveniences	(£15,000)	(£1,000)	-	-	-	(£16,000)
Civic Dinner	(£11,000)	-	-	-	-	(£11,000)
Positive Futures	(£25,000)	-	-	-	-	(£25,000)
Rushcliffe Reports	(£18,000)	-	-	-	-	(£18,000)
Total	(£825,000)	(£314,000)	(£218,000)	(£320,000)	(£86,000)	(£1,762,000)
Cumulative Savings to date	(£5,833,000)	(£6,658,00)	(£6,972,000)	(£7,189,000)	(£7,509,000)	-
Cumulative Savings carried forward	(£6,658,00)	(£6,972,000)	(£7,189,000)	(£7,509,000)	(£7,595,000)	-

Appendix 8 - Capital and Investment Strategy 2025/26 - 2029/30

Introduction

The Local Government Act 2003 requires the Council to comply with the CIPFA Prudential Code for Capital Finance in Local Authorities when carrying out capital and treasury management activities.
The Ministry of Housing Communities and Local Government (MHCLG) has issued Guidance on Local Council Investments that requires the Council to approve an investment strategy before the start of each financial year.
This report fulfils the Council’s legal obligation under the Local Government Act 2003 to have regard to both the CIPFA Code and the MHCLG Guidance.

The Capital Strategy

The Council’s capital expenditure plans are summarised below and forms the first of the prudential indicators. Capital expenditure needs to have regard to:

Corporate objectives (e.g. strategic planning);
Stewardship of assets (e.g. asset management planning);
Value for money (e.g. option appraisal);
Prudence and sustainability (e.g. implications for external borrowing and whole life costing);
Affordability (e.g. implications for council tax);
Practicability (e.g. the achievability of the Corporate Strategy);
Proportionality (e.g., risks associated with investment are proportionate to financial capacity); and
Environmental Social Governance (ESG) (e.g., address environmental sustainability in a manner which is consistent with our corporate policies. This is now a requirement of the Treasury Management Code)

Each year the Council will produce a Capital Programme to be approved by Full Council in March as part of the Council Tax setting.
Each scheme is supported by a detailed appraisal (which may also be a Cabinet Report), as set out in the Council’s Financial Regulations. The capital appraisals will address the following:

A detailed description of the project;
How the project contributes to the Council’s s Corporate Priorities and Strategic Commitments (particularly the Council’s environmental and carbon policies);
Anticipated outcomes and outputs;
A consideration of alternative solutions;
An estimate of the capital costs and sources of funding;
An estimate of the revenue implications, including any savings and/or future income generation potential;
A consideration of whether it is a new lease agreement;
How the project affects the Council’s Environmental targets;
Any other aspects relevant to the appraisal of the scheme as the S151 Officer may determine.

The appraisal requirement applies to all schemes except where there is regular grant support and if commercial negotiations are due to take place and further reporting to Cabinet or Full Council is therefore required.

From time-to-time unforeseen opportunities may arise, or new priorities may emerge, which will require swift action and inclusion in the Capital Programme. These schemes are still subject to the appraisal process and the Capital Programme will contain a contingency sum to allow such schemes to progress without disrupting other planned capital activity.

Capital Prudential Indicators

Capital Expenditure Estimates

Capital expenditure can be financed immediately through the application of capital resources, for example, capital receipts, capital grants or revenue resources. However, if these resources are insufficient or a decision is taken not to apply resources, the capital expenditure will give rise to a borrowing need. The table below summarises the capital expenditure projections and anticipated financing. The detail behind the schemes are included in the Medium Term Financial Strategy (MTFS) presented to Full Council.

Projected Capital Expenditure and Financing
Category	2024/25 Estimate	2025/26 Estimate	2026/27 Estimate	2027/28 Estimate	2028/29 Estimate	2029/30 Estimate
Capital Expenditure	£12,095,000	£8,344,000	£5,481,000	£5,437,000	£3,680,000	£4,182,000
Less Financed by:	-	-	-	-	-	-
Capital Receipts	£2,571,000	£2,719,000	£295,000	£246,000	£178,000	£795,000
Capital Grants / Contributions	£6,434,000	£1,706,000	£2,640,000	£3,614,000	£2,457,000	£1,820,000
Reserves	£3,090,000	£3,919,000	£2,546,000	£1,577,000	£1,045,000	£1,570,000
Total Financing	£12,095,000	£8,344,000	£5,481,000	£5,437,000	£3,680,000	£4,185,000
Underlying need to Borrow	0	0	0	0	0	0

The key risks to the capital expenditure plans are that the level of grants estimated is subject to change, anticipated capital receipts are not realised/deferred or spend is more than expected in the medium term. There is uncertainty surrounding the future of New Homes Bonus which has impacted on the level of capital grants received going forward. The provisional allocation for 2025/26 is £1,478,000 with nothing anticipated in future years.

The Council's Underlying Need to Borrow and Investment Position

The Council’s cumulative outstanding amount of debt finance is measured by the Capital Financing Requirement (CFR) which remains a key indicator under the Prudential Code. The CFR increases with new debt-financed capital expenditure and reduces with Minimum Revenue Provision (MRP) and capital receipts used to replace debt. In addition, the CFR will reduce with any voluntary contributions (VRP) made, because of financing requirements in relation to the Rushcliffe Arena development.

11. The Council also holds usable reserves and working capital which represent the underlying resources available for investment. The Council’s current strategy is to use these resources, by way of internal borrowing, to avoid the need to externalise debt.

12. The table below summarises the overall position regarding borrowing and available investments. It shows a decrease in CFR as the final residual MRP payment in relation to the Arena is made in 2026/27.

Capital Financing Requirement and Investment Resources

Capital Financing Requirement and Investment Resources
Description	2024/25 Estimate	2025/26 Estimate	2026/27 Estimate	2027/28 Estimate	2028/29 Estimate	2029/30 Estimate
Opening CFR	£9,899,000	£7,689,000	£6,515,000	£5,776,000	£5,602,000	£5,428,000
CFR in year	-	-	-	-	-	-
Less MRP etc	(£1,200,000)	(£1,174,000)	(£739,000)	(£174,000)	(£174,000)	(£174,000)
Less Capital Receipts Applied	(£1,000,000)	-	-	-	-	-
Closing CFR	£7,689,000	£6,515,000	£5,776,000	£5,602,000	£5,428,000	£5,254,000
Less External Borrowing	-	-	-	-	-	-
Internal Borrowing	£7,689,000	£6,515,000	£5,776,000	£5,602,000	£5,428,000	£5,254,000
Less Usable Reserves	(£32,267,000)	(£31,516,000)	(£28,730,000)	(£25,197,000)	(£22,058,000)	(£18,524,000)
Less Working Capital	(£50,020,000)	(£48,020,000)	(£46,020,000)	(£44,020,000)	(£42,020,000)	(£40,020,000)
Available for Investment	(£74,568,000)	(£73,021,000)	(£68,974,000)	(£63,615,000)	(£58,650,000)	(£53,290,000)

13. The Council is currently debt free and the assumption in the capital expenditure plan is that the Council will not need to externally borrow over the period of the MTFS predominantly due to Community infrastructure Levy (CIL) and S106 monies. Available resources (usable reserves and working capital) gradually reduce with usable reserves being used over the medium term to finance both capital and revenue expenditure. Working capital is projected to steadily reduce as S106 monies in relation to education are no longer paid to the Council and monies from developers are released.

14. Projected levels of the Council’s total outstanding debt are shown below, compared with the capital financing requirement (see above). Statutory guidance is that debt should remain below the CFR, except in the short term. As can be seen from the table below, the Council expects to comply with this. A reducing CFR is also positive as the Council’s underlying need to borrow reduces.

Prudential Indicator: Gross Debt and Capital Financing Requirement

Gross Debt and Capital Financing Requirement
Description	2024/25 Forecast	2025/26 Forecast	2026/27 Forecast	2027/28 Forecast	2028/29 Forecast	2029/30 Forecast
Debt (including PFI and leases)	0	0	0	0	0	0
Capital Financing Requirement	£7,689,000	£6,515,000	£5,776,000	£5,602,000	£5,428,000	£5,254,000

15. new accounting standard IFRS16 came into force on 1 April 2024. IFRS16 affects how leases are measured, recognised, and presented in the accounts and essentially means that some leases may have to be classified as capital expenditure. The full impact of this change is to be determined but it is thought that it is unlikely to impact significantly on the CFR.

Minimum Revenue Provision Policy

16. DLUHC Regulations require the Governance Scrutiny Group to consider a Minimum Revenue Provision (MRP) Statement in advance of each year. Further commentary regarding financing of the debt is provided in paragraphs 28-33. A variety of options are provided to Councils, so long as there is prudent provision. The Council has chosen the Asset Life Method (Option 3 within the Guidance) with the following recommended MRP Statement:

MRP will be based on the estimated life of the assets, in accordance with Option 3 of the regulations. Estimated life periods within this limit will be determined under delegated powers, subject to any statutory override. (MHCLG revised guidance states maximum asset lives of 40 and 50 years for property and land respectively)

As some types of capital expenditure incurred by the Council are not capable of being related to an individual asset, asset lives will be assessed on a basis which most reasonably reflects the anticipated period of benefit that arises from the expenditure. Also, whatever type of expenditure is involved, it will be grouped together in a manner which reflects the nature of the main component of expenditure and will only be divided up in cases where there are two or more major components with substantially different useful economic lives.

This option provides for a reduction in the borrowing need over approximately the asset’s life.

17. As well as the need to pay off an element of the accumulated General Fund borrowing requirement, used to fund capital expenditure each year (the CFR), through a revenue charge (the MRP), the Council is also allowed to make additional voluntary contributions (VRP). In times of financial crisis, the Council has the flexibility to reduce voluntary contributions. Once payments in relation to the Arena finish (2026-27) the Council does not envisage making VRP contributions on any other scheme. Table 2 (paragraph 12) includes the use of capital receipts to bring the CFR down by funding capital expenditure.

Treasury Management Strategy 2025/26 to 2029/30

18. The CIPFA Treasury Management Code (2021) defines treasury management activities as:

“The management of the local authority’s investments and cash flows, its banking, money market and capital market transactions; the effective control of the risks associated with those activities; and the pursuit of optimum performance consistent with those risks.

The code also covers non-cash investments which are covered at paragraph 71 to 78 below. Under the revised Prudential code, investments are separated into categories for Treasury Investment, Service Investment and Commercial Investment.

19. The CIPFA Code of Practice for Treasury Management in the Public Services (the “CIPFA Treasury Management Code”) and the CIPFA Prudential Code require local authorities to produce a Treasury Management Strategy Statement before the start of each financial year.

20. This Strategy includes those indicators that relate to the treasury management functions and help ensure that the Council’s capital investment plans are affordable, prudent, and sustainable, while giving priority to the security and liquidity of those investments. TMP 1 (Treasury Management Practices) sets out the Council’s practices relating to Environmental Social Governance (ESG) and is a developing area.

The Current Economic Climate and prospects for Interest Rates

21. The impact on the UK from the government’s Autumn Budget, slower interest rate cuts, modestly weaker economic growth over the medium term, together with the impact from President Trump's second term in office and uncertainties around US domestic and foreign policy, will all influence the UK economy and ultimately impact on the performance of the Council’s treasury management
strategy for 2025/26.

22. The Bank of England’s (BoE) Monetary Policy Committee (MPC) reduced the Bank Rate to 4.75% at its meeting in November 2024 (since maintained at this level at the December meeting), having previously cut it by 25 basis points from the 5.25% peak at the August MPC meeting. The Council’s treasury management adviser Arlingclose forecasts that interest rates will continue reducing through 2025, taking the Bank Rate to around 3.75% by the end of the 2025/26 financial year. The effect from the Autumn Budget on economic growth and inflation has reduced expectations in terms of the pace of interest rate cuts as well as pushing up the rate.

23. The Consumer Prices Index (CPI) rose by 2.6% in the 12 months to November 2024, up from 2.3% in October. However, a shock release showed the December year-on-year figure was 2.5% slightly lower than expected. The outlook for CPI inflation in the November Monetary Policy Report (MPR) showed it rising above the MPC’s 2% target from 2024 into 2025 and reaching around
2.75% by the summer 2025. This is due to the ongoing impacts from higher interest rates and the Autumn Budget. Over the medium-term, once these pressures ease, inflation is expected to stabilise around 2% target.

24. The unemployment rate in the UK rose slightly from 4% in October to 4.3% November 2024.The BoE MPR showed the unemployment rate is expected to increase modestly, rising to around 4.5%, the assumed medium term equilibrium level.

25. The table below shows the assumed average interest (which reflects a prudent approach) that will be made over the next five years for budget setting purposes.

Budgetary Impact of Assumed Interest Rate
Category	2025/26	2026/27	2027/28	2028/29	2029/30
Anticipated Interest Rate	4.06%	3.75%	3.50%	3.00%	3.00%
Expected Interest from Investments	£1,375,900	£1,248,800	£1,117,600	957,700	£863,000
Other Interest	£59,000	£59,000	£59,000	£59,000	£59,000
Total Interest	£1,434,900	£1,307,800	£1,176,600	£1,016,700	£922,000
Sensitivity	-	-	-	-	-
- 0.25% Interest Rate	£80,800	£73,000	£72,500	£59,600	£56,800
+ 0.25% Interest Rate	(£80,800)	(£73,500)	(£72,500)	(£59,600)	(£56,800)

26. In the event that a bank suffers a loss, the Council could be subject to bail-in to assist with the recovery process. The impact of a bail-in depends on the size of the loss incurred by the bank or building society, the amount of equity capital and junior bonds that can be absorbed first and the proportion of insured deposits, covered bonds and other liabilities that are exempt from bail-in.

27. The Council has managed bail-in risk by both reducing the amount that can be invested with each institution to £10,000,000 and by investment diversification between creditworthy counterparties.

Borrowing Strategy 2025/26 to 2029/30

Prudential Indicators for External Debt

28. The Capital Financing table above identifies that the Council will not need to externally borrow over the MTFS instead choosing to internally borrow. Whilst this means that no external borrowing costs (interest/debt management) are incurred, there is an
opportunity cost of using internal borrowing by way of lost interest on cash balances.

29. The approved sources of long term and short term borrowing are:

UK Municipal Bond Agency and other special purpose companies created to enable local authority bond issues
HM Treasury’s PWLB lending facility
Any other public sector body
UK public and private sector pension funds
Any other bank or building societies authorised to operate in the UK
Capital market bond investors
National Wealth Fund (formerly UK Infrastructure Bank)
Any institution approved for investments
Retail investors via a regulated peer-to-peer platform

Public Works Loan Board (PWLB) borrowing is at Gilts +80 basis points (certainty rate). If applying, there is the need to categorise the capital programme into 5 categories including service, housing and regeneration. If any Council has assets that are being purchased ‘primarily for yield’ anywhere in their capital programme they will not be able to access PWLB funding.

Other sources of debt finance, in addition to the above, that are not borrowing but may be classed as other debt liabilities are listed below. These options would be subject to due diligence in the event that any are proposed methods to finance Council debt.

Hire purchase
Leasing
Sale and leaseback
Private Finance Initiative

a) Authorised Limit for External Debt

30. The authorised limit is the “affordable borrowing limit” required by section 3 (1) of the Local Government Act 2003 and represents the limit beyond which borrowing is prohibited. It shows the maximum amount the Council could afford to borrow in the short term to maximise treasury management opportunities and either cover temporary cash flow shortfalls or use for longer term capital
investment. It should be set higher than the CFR (see table for Gross Debt and Capital Financing Requirement) plus a safety margin of £10,000,000 to £15,000,000. The limits below satisfy this requirement.

Authorised Limit for External Debt
Description	2024/25 Estimate	2025/26 Estimate	2026/27 Estimate	2027/28 Estimate	2028/29 Estimate	2029/30 Estimate
Authorised Limit	£20,000,000	320,000,000	£20,000,000	£20,000,000	£20,000,000	£20,000,000

b) Operational Boundary for External Debt

31. The operational boundary is the expected borrowing position of the Council during the year. The operational boundary is not a limit and actual borrowing can be either below or above the boundary subject to the authorised limit not being breached. The Operational Limit has been set at £15,000,000 (see table below) and, whilst the Council is not expected to externally borrow over the period of the MTFS, this provides a cushion and gives flexibility should circumstances significantly change.

Operational Boundary for External Debt
Category	2024/25 Estimate	2025/26 Estimate	2026/27 Estimate	2027/28 Estimate	2028/29 Estimate	2029/30 Estimate
Operational Boundary	£15,000,000	£15,000,000	£15,000,000	£15,000,000	£15,000,000	£15,000,000

32. The Council's is required to show the maturity structure of borrowing. The Council had no debt and is unlikely to need to borrow over the medium term and if it did, it would only be for small amounts so there is no significant refinancing risks and therefore the limits in the strategy do not need to be restrictive.

The Prudential indicators for debt discussed are shown in the table below:

Prudential Indicators - refinancing risk
Refinancing rate risk indicator	Upper limit	Lower limit
Under 12 months	100%	0%
12 months and within 24 months	100%	0%
24 months and within 5 years	100%	0%
5 years and within 10 years	100%	0%
10 years and above	100%	0%

33. The Liability Benchmark reflects the real need to borrow and can be seen in table 8. In accordance with the Code this must also be shown graphically (see below). The Council’s CFR is reducing due to MRP repayments, reserves are being used to fund future capital expenditure and working capital/S106 monies are returning to a normal level. As demonstrated by the credit figures below, the Council
expects to be a long-term investor and has no need to borrow over the medium term.

Prudential Indicator: Liability Benchmark

Liability Benchmark
Category	2024/25 Estimate	2025/26 Estimate	2026/27 Estimate	2027/28 Estimate	2028/29 Estimate	2029/30 Estimate
Closing CFR	£7,689,000	£6,515,000	£5,776,000	£5,602,000	£5,428,000	£5,254,000
Less:	-	-	-	-	-	-
Usable reserves	(£32,267,000)	(£31,516,000)	(£28,730,000)	(£25,197,000)	(£22,058,000)	(£18,524,000)
Working capital	(£50,020,000)	(£48,020,000)	(£46,020,000)	(£44,020,000)	(£42,020,000)	(£40,020,000)
Plus minimum investments	£10,000,000	£10,000,000	£10,000,000	£10,000,000	£10,000,000	£10,000,000
Liability Benchmark	(£64,598,000)	(£63,021,000)	(£58,974,000)	(£53,615,000)	(£48,650,000)	(£43,290,000)

The Prudential Indicators for Affordability

34. Affordability indicators provide details of the impact of capital investment plans on the Council’s overall finances.

a) Actual and estimates of the ratio of net financing costs to net revenue stream

35. This indicator identifies the trend in net financing costs which include borrowing costs (MRP only for Rushcliffe) less investment income, against net revenue income. The purpose of the indicator is to show how the proportion of net income used to pay for financing costs is changing over time.

36. A credit indicates interest earned rather than an interest cost. The figures fluctuate over the MTFS period but from 2025/26 all figures are in credit. This is reflective of the reducing MRP payments, as payments in relation to Rushcliffe Arena finish in 2026/27. There are other non-treasury capital commitments in relation to Rushcliffe Oaks Crematorium and Bingham Arena and Enterprise
Centre which give rise to further MRP, but repayments are lower because they are spread over a longer period.

37. Net revenue streams fluctuate over the period. New Homes Bonus has been extended a further year, but no further income is expected after 2025-26. Later years reflect both the downward trend in interest from lower investment balances whilst net revenue streams increase from Council Tax and Localised Business Rate increases.

Proportion of Financing Costs to Net Revenue Stream
Description	2025/26 Estimate	2026/27 Estimate	2027/28 Estimate	2028/29 Estimate	2029/30 Estimate
Net Interest Payable/(Receivable)	(£261,000)	(£569,000)	(£1,003,000)	(£843,000)	(£748,000)
Net Revenue Stream	£19,392,000	£14,883,000	£14,849,000	£15,446,000	£16,070,000
Financing Costs: Net Revenue Stream	Minus 1.35%	Minus 3.82%	Minus 6.75%	Minus 5.46%	Minus 4.65%

b. Estimates of net income to net revenue stream

38. This indicator that looks at net income from commercial and service investments (for example it includes Rushcliffe Oaks Crematorium and Bingham Market) and expresses it as a percentage of net revenue streams. The increase reflects rent increases and full year effect of the crematorium becoming operational.

Proportion of Net Income to Net Income Stream

Proportion of Net Income to Net Revenue Stream
Description	2025/26 Estimate	2026/27 Estimate	2027/28 Estimate	2028/29 Estimate	2029/30 Estimate
Net Income from investments	(£2,142,000)	(£2,286,000)	(£2,331,000)	(£2,354,000)	(£2,373,000)
Net Revenue Stream	£19,392,000	£14,883,000	£14,849,000	£15,446,000	£16,070,000
Net Income to Net Revenue Stream	11.00%	15.4%	15.7%	15.2%	14.8%

Investment Strategy 2025/26 to 2029/30

39. The table below shows the Council's investment projections. The downward movement reflects the use of capital receipts to finance capital expenditure. In addition, it reflects the release of S106 monies and the loss of S106 receipts for Education which are no longer paid to the Council.

Investment Projections

Investment Projections
Description	2024/25 Estimate	2025/26 Estimate	2026/27 Estimate	2027/28 Estimate	2028/29 Estimate	2029/30 Estimate
Investments at 31 March	£74,598,000	£73,021,000	£68,974,000	£63,615,000	£58,650,000	£53,290,000

40. The CIPFA Code requires the Council to invest its funds prudently, and to have regard to the security and liquidity of its investments before seeking the highest rate of return. The Council’s objective when investing money is to strike an appropriate balance between risk and return, minimising the risk of incurring losses from defaults and the risk of receiving unsuitable low investment income.

Where balances are expected to be invested for more than one year, the Council will aim to achieve a total return that is equal or higher than the prevailing rate of inflation, to maintain the spending power of the sum invested. The Council aims to be a responsible investor and will consider environmental, social and governance (ESG) issues when investing. The Council ensures that robust due
diligence procedures cover all external investments.

41. As demonstrated by the liability benchmark above (paragraph 33), the Council expects to be a long-term investor and treasury investments will therefore include both short-term low risk instruments to manage day to day cash flows and longer-term instruments where limited additional risk is accepted in return for higher investment income to support the services the Council provides.

42. Environmental, social and governance (ESG) considerations are increasingly a factor in global investors’ decision making, but the framework for evaluating investment opportunities is still developing and therefore the Council’s ESG policy does not currently include ESG scoring or other real-time ESG criteria at an individual investment level. When investing in banks and funds, the Council will (in accordance with treasury advice) prioritise banks that are signatories to the UN Principles for Responsible Banking and funds operated by managers that are signatories to the UN Principles for Responsible Investment, the Net Zero Asset Managers Alliance and/or the UK Stewardship Code.

43. The Council will keep under review the sensitivity of its treasury assets and liabilities to inflation and will seek to manage the risk accordingly in the context of the whole of the Council’s inflation exposures.

44. The Council will invest its surplus funds with any of the counterparty types in the table below, subject to the limits shown and counterparties included at Appendix i.

Counterparty Details
Sector	Time Limit	Counterparty Limit	Sector Limit
UK Government	50 years	Unlimited	not applicable
Local Authorities and other government entities	25 years	£10,000,000	Unlimited
Secured investments (see note below table)	25 years	£10,000,000	Unlimited
Bank (unsecured) (see note below table)	13 months	£3,000,000	Unlimited
Building Societies (unsecured) (see note below table)	13 months	£3,000,000	£3,000,000
Registered provider (see note below table)	5 years	£5,000,000	£3,000,000
Money market funds (see note below table)	not applicable	£10,000,000	Unlimited
Strategic pooled funds (see note below table)	not applicable	£10,000,000	£30,000,000
Real estate investment trusts (see note below table)	not applicable	£5,000,000	£10,000,000
Other investments (see note below table)	5 years	£5,000,000	£10,000,000

*Refer to Glossary at Appendix (iv)

45. Credit rating information is provided by Arlingclose on all active counterparties that comply with the criteria above. A counterparty list will be maintained from this information and any counterparty not meeting the criteria will be removed from the list.

46. Where an entity has its credit rating downgraded so that it fails to meet the approved investment criteria then:

no new investments will be made,
any existing investments that can be recalled or sold at no cost will be, and
full consideration will be given to the recall or sale of all other existing investments with the affected counterparty.

47. Where a credit rating agency announces that a credit rating is on review for possible downgrade (also known as “rating watch negative” or “credit watch negative”) so that it may fall below the approved rating criteria, then only investments that can be withdrawn (on the next working day), will be made with that organisation until the outcome of the review is announced. This policy will not apply to negative outlooks, which indicate a long-term direction of travel rather than an imminent change of rating.

48. The Council understands that credit ratings are good, but not perfect, predictors of investment default. Full regard will be given to other available information on the credit quality of the organisations in which it invests, including financial statements, information on potential government support, reports in the quality financial press and analysis and advice from Arlingclose.

49. The Council is aware that investment with certain counterparties, while considered secure from a purely financial perspective, may leave it open to criticism that may affect its public reputation, and this risk will also be considered when making investment decisions. Many local authorities are not rated by credit rating agencies, although some are. The Council will always take reasonable steps as mentioned in paragraph 48 and carry out due diligence before investing.

50. Although the Council has never made use of financial derivatives and has no current plans to do so, in line with the Cipfa code, the Council would seek external advice before entering into such an agreement to ensure that it fully understands the implications (see paragraphs 65 to 67 for more detail).

Credit Risks

51. The CIPFA Treasury Management Code recommends that organisations should clearly specify the minimum acceptable credit quality of its counterparties; however they should not rely on credit ratings alone and should recognise their limitations. Full regard will therefore be given to other available information on the credit quality of the organisations, in which it invests, including credit default swap prices, financial statements, information on potential government support and reports in the quality financial press. No investments will be made with an organisation if there are substantial doubts about its credit quality, even though it may meet the credit rating criteria.

52. When deteriorating financial market conditions affect the credit worthiness of all organisations, as happened in 2008 and 2011, this is not generally reflected in credit ratings, but can be seen in other market measures. In these circumstances, the Council will restrict its investments to those organisations of higher credit quality and reduce the maximum duration of its investments to
maintain the required level of security. The extent of these restrictions will be in line with prevailing financial market conditions. If these restrictions mean that insufficient commercial organisations of high credit quality are available to invest the Council’s cash balances, then the surplus will be deposited with the UK Government, via the Debt Management Office or invested in government
treasury bills for example, or with other local authorities. This will cause a reduction in the level of investment income earned but will protect the principal sum invested.

Current Investments

53. The Council uses its own processes to monitor cash flow and determine the maximum period for which funds may prudently be committed. The forecast is compiled on a prudent basis to minimise the risk of the Council being forced to borrow on unfavourable terms to meet its financial commitments. Limits on long-term investments are set by reference to the Council’s medium term financial strategy and cash flow forecast.

54. Surplus funds are invested based on the most up to date forecasts of interest rates and in accordance with the Council’s cash flow requirements in order to gain the maximum benefit from the Council’s cash position throughout the year. Generally speaking, in times of rising interest rates it is prudent to invest short term, whilst also ensuring a diversified portfolio. Funds are separated between service investment and non-specified investments as detailed in paragraphs 58 to 60 below.

55. Historically (prior to 2011) the Council held £2,000,000 in pooled/diversified funds. In 2018 it purchased an additional £2,000,000, a further £9,000,000 in 2019, followed by £2,000,000 in 2021 giving a total of £15,000,000. The fair value of these funds fluctuates, the current value of these investments can be seen in Appendix ii. The downward trend experienced by the political turmoil last year coupled with high levels of inflation and monetary policies surrounding interest rates has impacted on these.

56. The fluctuations in capital value of the pooled funds to date is a loss of £978,000. This is currently reversed by the statutory override preventing any accounting loss impacting on the revenue accounts. This is due to end 31 March 2025. The risk of this loss crystalising after this period has been largely mitigated by appropriations of £1,173,000 to the Pooled Funds reserve.

57. It should be noted that whilst the value of this type of investment can fluctuate, the revenue returns make up a significant proportion of the overall returns on investments (the fair value of these investments accounted for 19% of average investment balances in 2023/24 but generated 34% interest) and over the period of investment has returned £3,500,000 in interest. The Council will continue to monitor the position on these investments and take advice from the treasury advisors.

Service Investments

58. The Council invests its money for three broad purposes:

because it has surplus cash as a result of its day-to-day activities (treasury management),
to support local public services by lending to or buying shares in other organisations (service investments), and
to earn investment income (or known as commercial investments where this is the main purpose).

59. The Council can lend money to its suppliers, parish councils, local businesses, local charities, employees, housing associations to support local public services and stimulate local growth. The Council has existing loans to Nottinghamshire Cricket Club which not only stimulates the local economy but provides social outcomes The Trent Bridge: Community Trust delivers projects that have
positive impacts on local communities such as tackling social exclusion and anti-social behaviour. The main risk when making service loans is that the borrower may be unable to repay the principal lent and/or the interest due. In order to limit this risk and ensure that total exposure to service loans remains proportionate to the size of the Council, the upper limit on any category of
borrower will be £5 million.

Non-specified investments

60. Shares are the only investment type that the Council has identified that meets the definition of a non-specified investment in the government guidance. The Council does not intend to make any such investments, that are defined as capital expenditure by legislation.

Investment Limits

61. The Council's revenue reserves available to cover investment losses in a worst-case scenario are forecast to be around £15,800,000 on 31 March 2025. The maximum that will be lent to any one organisation (other than the UK Government) will be £10,000,000. This figure is constantly under review to assess risk in the case of a single default. A group of banks under the same
ownership will be treated as a single organisation for limit purposes. Limits will also be placed on fund managers, investments in brokers’ nominee accounts, foreign countries, and industry sectors as below. Investments in pooled funds and multilateral development banks do not count against the limit for any single foreign country since the risk is diversified over many countries.

Investment Limits
Description	Cash Limit
Any group of pooled funds under the same management	£10,000,000 per manager
Investments held in a broker's nominee account	£10,000,000 per broker
Foreign Countries	£3,000,000 per country

Treasury Management limits on activity

62. The Council measures and manages its exposures to treasury management risks using the following indicators:

a) Interest Rate Exposure

63. This indicator is set to control the Council’s exposure to interest rate risk. The upper limits on fixed and variable rate interest rate exposures, expressed as the amount of net interest payable. The Council has set a limit of 50% on fixed interest rate exposure. During a time of falling interest rates as forecast (paragraph 25) this indicator should not be restrictive, preventing the Council from locking into higher interest rates. The definition of fixed rate investments and borrowings are those where the rate of interest is fixed for at least 12 months, measured from the start of the financial year or the transaction date if later. All other instruments are classed as variable rate.

Interest Rate Exposure
Category	2024/25	2025/26	2026/27	2027/28	2028/29	2029/30
Upper Limit on fixed interest rate exposure	50%	50%	50%	50%	50%	50%
Upper Limit on variable interest rate exposure	100%	100%	100%	100%	100%	100%

Principal Sums Invested over one year

64. This limit is intended to contain exposure to the possibility of any loss that may arise as a result of the Council having to seek early repayment of any investments made. The limits on the long-term principle sum invested to final maturities beyond the period end are set at 50% of the sum available for investment (to the nearest £100,000), as follows:

Principal sums invested over one year
Description	2024/25 Estimate	2025/26 Estimate	2026/27 Estimate	2027/28 Estimate	2028/29 Estimate	2029/30 Estimate
Limit on Principal Invested over one year	£37,300,000	£36,500,000	£34,000,000	£31,800,000	£29,300,000	£26,600,000

Policy on the use of financial derivatives

65. Local authorities have previously made use of financial derivatives embedded into loans and investments both to reduce interest rate risk (e.g., interest rate collars and forward deals) and to reduce costs or increase income at the expense of greater risk (for example, LOBO (Lender Option Borrowers Option) loans and callable deposits). The general power of competence in Section 1 of the Localism Act 2011 removes much of the uncertainty over local authorities’ use of standalone financial derivatives (i.e., those that are not embedded into a loan or investment).

66. The Council will only use standalone financial derivatives (such as swaps, forwards, futures, and options) where they can be clearly demonstrated to reduce the overall level of the financial risks that the Council is exposed to. Additional risks presented, such as credit exposure to derivative counterparties, will be considered when determining the overall level of risk. Embedded derivatives, including those present in pooled funds and forward starting transactions, will not be subject to this policy, although the risks they
present will be managed in line with the overall treasury risk management strategy.

67. Financial derivative transactions may be arranged with any organisation that meets the approved investment criteria. The current value of any amount due from a derivative counterparty will count against the counterparty credit limit and the relevant foreign country limit.

Treasury Management Advisors

68. Arlingclose will act as the Council’s treasury management advisors until 31 October 2026. The company provides a range of services which include:

•   Technical support on treasury matters and capital finance issues
•   Economic and interest rate analysis
•   Generic investment advice on interest rates, timing and investment instruments; and
•   Credit ratings/market information service comprising the three main credit rating agencies.

69. Whilst the treasury management advisors provide support to the internal treasury function, the current market rules and the CIPFA Treasury Management Code confirms that the final decision on treasury management matters rests with the Council. The service provided by the Council’s treasury management advisors is subject to regular review.

Other Options Considered

70. The MHCLG Guidance and the CIPFA Code do not prescribe any particular treasury management strategy for local authorities to adopt. The Director – Finance and Corporate Services, having consulted the Cabinet Member for Finance, believes that the above strategy represents an appropriate balance between risk management and cost effectiveness. Our policy is to have a
feathered approach i.e., a range of counterparties spread over different time periods (short/medium/long term), this mitigates risk of changes in credit ratings and interest rates whether they go up or down.

Commercial Investments

71. The CIPFA’s definition of treasury management activities above (paragraph 19) covers all financial assets of the organisation as well as other non-financial assets which the organisation holds primarily for financial returns, such as investment property portfolios. This may therefore include investments which are not managed as part of normal treasury management or under treasury management delegations.

72. Under the updated Prudential Code, Local Authorities are no longer allowed to borrow to fund non-financial assets solely to generate a profit.

73. The Council will maintain a summary of current material investments, subsidiaries, joint ventures and liabilities, including financial guarantees and the organisation’s risk exposure. The current summary is included at Appendix (iii).

74. The Council will also monitor past commercial property investments against original objectives and consider plans to divest as part of a biennial review. The last report was presented to Governance Scrutiny Group in February 2024 (see paragraph 84).

75. Proportionality is included as an objective in the Prudential Code. Clarification and definitions to define commercial activity and investment are also included, and the purchase of commercial property purely for profit cannot lead to an increased capital financing requirement (CFR).

76. The Council must disclose its dependence on commercial income and the contribution non-core investments make towards core functions. This covers assets previously purchased through the Council’s Asset Investment Strategy (AIS), as well as other pre-existing commercial investments

a) Dependence on commercial income and contribution non-core investments make towards core functions

77. The expected contributions from existing commercial investments are shown in Table 16. To manage the risk to the Council’s budget, the contribution from commercial investments should not account for a significant proportion of the Council’s total income. Over the medium term the contribution from commercial investments is around 11% each year leaving the Council less exposed to risks surrounding commercial property.

78. This was slightly higher in 2024/25 due to the Council’s budgeted total income at the time being lower primarily due to interest receipts forecasts reflecting interest rate cuts which were anticipated at the time of budget setting.

Commercial Investment income and costs
Category	2024/25	2025/26	2026/27	2027/28	2028/29	2029/30
Commercial Property Income	(£1,902,000)	(£1,979,000)	(£2,041,000)	(£2,041,000)	(£2,044,000)	(£2,047,000)
Running Costs	£458,000	£465,000	£467,000	£476,000	£486,000	£497,000
Net Contribution to core functions	(£1,144,000)	(£1,514,000)	(£1,574,000)	(£1,565,000)	(£1,558,000)	(£1,550,000)
Interest from Commercial Loans	(£63,000)	(£59,000)	(£59,000)	(£59,000)	(£59,000)	(£59,000)
Total Contribution	(£1,507,000)	(£1,573,000)	(£1,633,000)	(£1,624,000)	(£1,617,000)	(£1,609,000)
Sensitivity: +/- 10% Commercial Property Income	£190,000	£198,000	£204,000	£204,000	£204,000	£205,000
Indicator: Total Contribution as a percentage of total Council income	13.4%	11.5%	11.7%	11.6%	11.4%	11.1%
Total Income	£11,231,000	£13,650,000	£13,949,000	£13,977,000	£14,228,000	£14,436,000

b) Risk exposure indicators

79. The Council can minimise its exposure to risk by spreading investments across sectors and by avoiding single large-scale investments. Generally there is a spread of investment across sectors. Generally, there is a spread of investment across sectors in the Council’s portfolio. The Council’s previous commitment to economic regeneration (not purely financial return) has meant that many of its investments have been in industrial units, which have been very successful. This is closely followed by income from Office accommodation which in some cases is linked to economic regeneration schemes. Bingham Enterprise is the latest investment which is now fully let and generating rental income of £108,000 per annum.

Income spread by sector:

Industrial sites - 41%
Offices - 38%
Retail - 7%
Other - 10%
Commercial loans - 4%

c) Security and liquidity

% Split by Asset Value (number of investments)

Under £500,000 - 63% (24 assets)
£500,000 to £1,000,000 - 11% (4 assets)
£1,000,000 to £2,000,000 - 21% (8 assets)
Over £2,000,000 - 5% (2 assets)

80. Commercial investments are held for longer term asset appreciation as well as yield. Investments or sales decisions will normally be planned as part of the consideration of the 5-year capital strategy to maximise the potential return. Nevertheless, the local and national markets are monitored to ensure any gains are maximised or losses minimised.

81. To help ensure asset values are maintained the assets are given quarterly inspections, together with a condition survey every three years. Any works required to maintain the value of the property will then form part of Council’s spending plans.

82. The liquidity of the assets is also dependent on the condition of the property, the strength of the tenants and the remaining lease lengths. The Council keeps these items under review with a view to maximising the potential liquidity and value of the property wherever possible.

83. The liquidity considerations for commercial investments are intrinsically linked to the level of cash and short-term investments, which help manage and mitigate the Council’s liquidity risk.

84. The Investments are subject to ongoing review with regards to their financial viability or indeed whether they are surplus to requirement. At the February 2024 Governance Scrutiny Group Meeting, details on the risks surrounding the Council’s commercial properties were reported, as well as providing a pathway to potential commercial asset disposal, if required.

Knowledge and Skills

85.The Treasury Management Code requires Local Authorities to document a formal and comprehensive knowledge and skills schedule reflecting the need to ensure that both members and officers responsible for treasury management are suitably trained and kept up to date (TMP 10). There will be specific training for members involved in scrutiny and broader training for members who sit on full Council. Training for Members was last delivered in December 2024. Previously these needs have been reported through the Member Development Group, with the Council specifically addressing this important issue by:

Periodically facilitating workshops for members on finance issues.
Interim reporting and advising members of Treasury issues via Governance Scrutiny Group.

With regards to officers:

Attendance at training events, seminars, and workshops; and
Support from the Council’s treasury management advisors
Identifying officer training needs on treasury management related issues through the Performance Development and Review appraisal process

The Governance Scrutiny Group have completed the CIPFA self-assessment tool and the results of this were scrutinised at the 28 November meeting. Actions arising from this self-assessment will be implemented during 2025. Attendance at training is recorded and members are encouraged to attend all Treasury training.

86. The Council will continue to have its Annual Treasury Management training session with Councillors provided by its Treasury advisers.

87. The Treasury Management Policy Statement attached at Appendix B follows the recommendations set out in Section 6 of CIPFA’s Treasury Management in the Public Services: Code of Practice (2021).

Appendix (i)

Counterparty Registrations under MIFID II (Markets in Financial Instruments Directive)

The Council is registered with the following regulated financial services organisations who may arrange investments with other counterparties with whom they have themselves registered:

BGC Brokers LP
Royal London Asset Management
Tradition UK Ltd
King & Shaxson
Aberdeen Asset Management
Aviva
Institutional Cash Distributors Ltd
Federated Investors (UK) LLP
Invesco Asset Management Ltd
CCLA
Goldman Sachs Asset Management
Black Rock
Aegon Asset Management
Ninety One
HSBC Asset Management
Imperial Treasury Services

Appendix (ii)

Pooled Funds - Changes in Fair Value since Acquisition

Changes in Fair Value since Acquisition
Fair Value	31.03.2024	31.12.2024	Difference	Amount Invested	Difference in Valuation from initial investment
Aegon (previously Kames)	£4,597,766	£4,634,285	Higher - £36,519	£5,000,000	Lower - £365,715
Ninety One (previously Investec)	£4,535,612	£4,511,518	Lower - £24,094	£5,000,000	Lower - £488,482
RLAM	£1,005,085	£1,102,717	Higher - £7,633	£1,000,000	Higher - £12,717
CCLA Property	£1,970,157	£1,991,128	Higher - £20,970	£2,000,000	Lower - £8,872
CCLA Diversified	£1,929,604	£1,872,395	Lower - £57,209	£2,000,000	Lower - £127,605
Total	£14,038,224	£14,022,043	Lower - £16,181	£15,000,000	Lower - £977,957

Appendix (iii)

Current Book Value of Non-Treasury Investments

Asset Valuations
Asset	Book Value 31.3.24	Book Value 31.3.23
The Point Office Accommodation	£3,272,000	£3,429,000
Hollygate Lane, Cotgrave Industrial Units	£2,776,000	£2,918,000
Unit 3 Edwalton Business Park	£2,223,000	£2,432,000
Bardon, Single Industrial Unit	£1,929,000	£2,078,000
Unit 1 Edwalton Business Park	£1,787,000	£1,954,000
Trent Boulevard	£1,428,000	£1.415,000
Colliers Business Park Phase 2	£1,386,000	£1,422,000
Cotgrave Phase 2	£1,227,000	£1,266,000
Bingham Hub Offices	£1,112,000	-
Bridgford Hall Apart Hotel and Registry Office	£1,061,000	£1,150,000
Finch Close	£911,000	£978,000
Boundary Court	£787,000	£838,000
Colliers Business Park Phase 1	£775,000	£787,000
Cotgrave Precinct Shops	£487,000	£478,000
Mobile Home Park	£477,000	£400,000
New Offices Cotgrave	£470,000	£484,000
Total Investment Property - Values are at 31 March 2023 and 2022	£22,108,000	£22,173,000
Notts County Cricket Club Loan	£1,499,000	£1,611,000
Total	£23,607,000	£23,784,000

Appendix (iv)

Glossary of Terms

Minimum credit rating: Treasury investments in the sectors marked with an asterisk will only be made with entities whose lowest published long-term credit rating is no lower than [AA-]. Where available, the credit rating relevant to the specific investment or class of investment is used, otherwise the counterparty credit rating is used. However, investment decisions are never made solely based on credit ratings, and all other relevant factors including external advice will be taken into account.

For entities without published credit ratings, investments may be made either (a) where external advice indicates the entity to be of similar credit quality; or (b) to a maximum of £10,000,000 per counterparty as part of a diversified pool e.g. via a peer-to-peer platform.

UK Government: Sterling-denominated investments with or explicitly guaranteed by the UK Government, including the Debt Management Account Deposit Facility, treasury bills and gilts. These are deemed to be zero credit risk due to the government’s ability to
create additional currency and therefore may be made in unlimited amounts for up to 50 years.

Local authorities and other government entities: Loans to, and bonds and bills issued or guaranteed by, other national governments, regional and local authorities and multilateral development banks. These investments are not subject to bail-in, and there is generally a lower risk of insolvency, although they are not zero risk.

Secured investments: Investments secured on the borrower’s assets, which limits the potential losses in the event of insolvency. The amount and quality of the security will be a key factor in the investment decision. Covered bonds, secured deposits and reverse repurchase agreements with banks and building societies are exempt from bail-in. Where there is no investment specific credit rating, but the collateral upon which the investment is secured has a credit rating, the higher of the collateral credit rating and the counterparty credit rating will be used. The combined secured and unsecured investments with any one counterparty will not exceed the cash limit for
secured investments.

Banks and building societies (unsecured): Accounts, deposits, certificates of deposit and senior unsecured bonds with banks and building societies, other than multilateral development banks. These investments are subject to the risk of credit loss via a bail-in should the regulator determine that the bank is failing or likely to fail. See below for arrangements relating to operational bank accounts.

Registered providers (unsecured): Loans to, and bonds issued or guaranteed by, registered providers of social housing or registered social landlords, formerly known as housing associations. These bodies are regulated by the Regulator of Social Housing (in England), the Scottish Housing Regulator, the Welsh Government and the Department for Communities (in Northern Ireland). As providers of public services, they retain the likelihood of receiving government support if needed.

Money market funds: Pooled funds that offer same-day or short notice liquidity and very low or no price volatility by investing in short-term money markets. They have the advantage over bank accounts of providing wide diversification of investment risks, coupled with the services of a professional fund manager in return for a small fee. Although no sector limit applies to money market funds, the Council will take care to diversify its liquid investments over a variety of providers to ensure access to cash at all times.

Strategic pooled funds: Bond, equity and property funds, including exchange traded funds, that offer enhanced returns over the longer term but are more volatile in the short term. These allow the Council to diversify into asset classes other than cash without the need to own and manage the underlying investments. Because these funds have no defined maturity date, they can be either withdrawn after a notice period or sold on an exchange, their performance and continued suitability in meeting the Council’s investment objectives will be monitored regularly.

Real estate investment trusts: Shares in companies that invest mainly in real estate and pay the majority of their rental income to investors in a similar manner to pooled property funds. As with property funds, REITs offer enhanced returns over the longer term, but are more volatile especially as the share price reflects changing demand for the shares as well as changes in the value of the underlying properties.

Other investments: This category covers treasury investments not listed above, for example unsecured corporate bonds and unsecured loans to companies and universities. Non-bank companies cannot be bailed-in but can become insolvent placing the Council’s investment at risk.

Operational bank accounts: The Council may incur operational exposures, for example though current accounts, collection accounts and merchant acquiring services, to any UK bank. These are not classed as investments but are still subject to the risk of a bank bail-in and balances will therefore be kept below £10,000,000 per bank. The Bank of England has stated that in the event of failure, banks with assets greater than £25,000,000 are more likely to be bailed-in than made insolvent, increasing the chance of the Council maintaining operational continuity.

Budget and Financial Strategy 2025-26