Agenda item - FIRST QUARTER CAPITAL MONITORING REVIEW 2025/26

REPORT OF THE DIRECTOR – RESOURCES

To update Cabinet on progress with delivering the Capital Programme for 2025/26, as at the end of June 2025.

RESOLVED: That Cabinet:

(1) Noted the forecast expenditure of £27.624M in 2025/26 on the capital programme, paragraph 8.3 refers.

(2) Approved the adjustments to the capital programme for 2026/27 onwards, as a result of the revised timetable of schemes detailed in table 2 and 3, increasing the estimated spend in 2026/27 by £0.838M and £0.608M in 2027/28.

(3) Noted the position of the availability of capital resources, as detailed in table 4 paragraph 8.6 and the requirement to keep the capital programme under review for affordability.

RECOMMENDED TO COUNCIL: That Council approve a capital budget of £1.275M (£0.319M in 25/26, £0.478M in 26/27 and £0.478M in 27/28) for the Government’s new energy efficiency Warm Homes Scheme. This will be fully funded from Government grants, as paragraph 8.5 refers.

REASONS FOR RECOMMENDATION:

(1) Cabinet is required to approve adjustments to the capital programme and ensure the capital programme is fully funded.

(2) Paragraph 4.4.1 b) of the Council’s Constitution details that Council will approve the budget. Any significant additions to the budget should be approve by Council and the decision to add the Warm Homes to the capital budget is therefore a referral to Council.

Audio recording – 1 hour 4 minutes 27 seconds

Councillor Daniel Allen informed the Cabinet that the Chair of the Finance, Audit and Risk Committee, Councillor Sean Nolan was not in attendance having given his apologies, however, had provided a written statement that was relayed to the Cabinet on his behalf, which highlighted the following:

· Future spending on the capital programme would require internal borrowing and lead to a reduction in income from investments.

· It was requested that the Solar for Business scheme should be reviewed in the future if conditions and interest improved.

Council Ian Albert, as Executive Member for Resources, presented the report entitled ‘First Quarter Capital Budget Monitoring Review 2025/26’ and advised that:

· Internal borrowing against savings would be needed to fund the capital programme, which would affect the investment income the Council would receive, and create a need to set aside a minimum revenue provision.

· The report detailed the Council spend on capital and how it was funded.

· Table 2 detailed projects that would be delayed to future years and Table 3 showed projects where the spend would differ from previous forecasts.

· The Solar for Business scheme had ceased due to a lack of interest and demand from businesses, in order to prioritise other actions in the Sustainability Strategy.

· The request to review the scheme in the future was noted.

· Paragraph 8.5 asked Cabinet to recommend that Council approved capital spend on the Warm Homes Scheme which was a Government funded scheme aimed at low income households to reduce emissions and tackle fuel poverty.

· After a successful bid to the Warm Homes Grant Scheme, the Council had been awarded £1.5M to deliver energy performance upgrades and low carbon heating to low income households across the district.

· The Council should publicise this scheme to residents and track its demand to assess the need for further promotion.

As part of the debate, Councillor Mick Debenham advised that promotional literature on the scheme would be distributed to residents via councillor surgeries.

Councillor Ian Albert proposed and Councillor Mick Debenham seconded, and, following a vote, it was: