Agenda item

The Committee is asked to note the position and any risks relating to the Council’s capital programme, consider the Cabinet’s decision and comment as necessary

To accept the report

To note the relevant risks

To support the Cabinet's decision (14 June 2022)

The Senior Finance Manager highlighted that the main purpose of the report was to present the revised capital programme at the end of the financial year (31 March 2022 position), and to approve the relevant financing sources. The analysis per Department of the £139.3 million capital programme for the 3 years 2021/22 - 2023/24 was referred to together with the sources available to fund the net increase of approximately £11.0 million since the previous review.

The main findings of the review was that the Council had managed to spend £37.1m in 2021/22 on capital schemes, and £29.9m (81%) of it funded through specific grants.

It was reported that the impact of the Covid-19 emergency and the lockdown period on the capital programme was evident and in addition to the £31.2m reported in the previous reviews, a further £26.8m of proposed expenditure had been re-profiled, namely slippage from 2021/22 to 2022/23, and the main plans included:

·         £7.6 million in Housing Strategy and Homelessness Plans

·         £7.2 million in Flood Prevention and Land Drainage Schemes

·         £6.5 million in 21st Century Schools Plans and Others

·         £4.0 million in Welsh Government New Grants in the Housing field (slippage replaced resource)

·         £3.2 million in Additional General Capital Grant for 21/22 (received in the last quarter of the year with allowance for slippage to 22/23)

In addition, the Council had managed to attract further grants since the last review (over 11 million) these included;  

·         £3.2 million - Additional General Capital Grant 21/22 - permission for slippage to 22/23

·         £3.1 million - Grants from the Land and Buildings Development Fund that allowed replacing current funding for expenditure in 22/23. 

·         £1.3 million - Intermediate Care Fund Grant - adapting adults establishments as well as facilitating joint working arrangements with other agencies in the care field. 

·         £1.1 million - Free School Meals Capital Grant - allowing the replacement of current funding for expenditure in 22/23 on adaptations to school kitchens. 

The Cabinet's decision (14 June 2022) was to accept all the recommendations and:

·         To accept the report

·         To note the expenditure of £37,054,000 on the capital programme during the 2021/22 financial year, which would be used as a basis for the statutory financial statements for 2021/22.

·         To approve the revised funding:

            Thanks were expressed for the report.

In response to a question regarding the assurance of receiving grants or that grants had been lost due to slippage, it was highlighted that some grant terms meant replacement whilst others gave permission to continue

In response to a question regarding identifying the risk of an increase in building costs and the cost of living and for this to be considered within the application / grant sum, it was noted in general that it was necessary to receive some grants and to maximise their use, however, with others an additional application was made to the Welsh Government.  It was added, in response to an increase in costs, that decisions were made to defer some plans.

RESOLVED

To accept the report

To note the relevant risks

To support the Cabinet's decision (14 June 2022)