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Agenda item

CAPITAL END OF YEAR REVIEW 2025/26

REPORT OF THE DIRECTOR – RESOURCES

 

To consider the Capital End of Year Outturn Review.

Decision:

RESOLVED: That Cabinet:

 

(1)  Noted expenditure of £22.002million in 2025/26 on the capital programme, paragraph 8.3 refers.

 

(2)  Approved the adjustments to the capital programme for 2026/27 as a result of the revised timetable of schemes and other adjustments detailed in table 2, increasing the estimated spend by £1.950million.

 

(3)  Noted the position of the availability of capital resources, as detailed in table 4 paragraph 8.7 and the requirement to keep the capital programme under review for affordability.

 

(4)  Approved the application of £1.057million of capital receipts/set aside towards the 2025/26 capital programme, paragraph 8.7 refers.

 

REASON FOR DECISIONS: Cabinet is required to approve adjustments to the capital programme and ensure the capital programme is fully funded.

Minutes:

Audio recording – 2 hours 16 minutes 26 seconds

 

The Chair invited Councillor Vijaiya Poopalasingham, as Chair of the Finance, Audit and Risk Committee, to present the referral on this item. Councillor Poopalasingham advised that:

 

·        Total expenditure against the capital budget over the year, including an underspend of £1.448M was detailed at Table 1 in the report, and areas within the capital schemes in which this had occurred were set out in Table 2.

·        The Leisure Centre Decarbonisation project would need to be kept under review due to slippage of timelines and an increase in the project budget to cover additional costs.

·        In-year variances on individual capital projects were shown at Table 3.

·        Projects successfully completed in 2025/26 were highlighted at paragraph 8.6.

·        There was a need to borrow to finance the capital programme as shown at paragraph 8.7 of the report.

·        Borrowing had mostly been done internally, and they could continue with this approach as the most significant 2025/26 capital expenditure had already taken place.

·        External borrowing needed to be kept under review due to high interest rates.

·        Borrowing would impact the budget due to a minimum revenue provision charge.

·        The Council were in an overall good position, but they would continue to monitor spending on budgets.

·        Councillor Ian Albert was thanked for his attendance at the Committee.

 

The Director – Resources advised that £1.4M had been budgeted for a minimum revenue provision this year, which was a correction to the figure quoted at the most recent Finance, Audit and Risk Committee meeting.

 

Councillor Ian Albert, as the Executive Member for Resources, presented the report entitled ‘Capital End of Year Review 2025-26’ and advised that:

 

·        Input and comments from Members of the Finance, Audit and Risk Committee were welcomed.

·        Completed capital projects such as King George V Skate Park and the leisure centre upgrades were fantastic achievements and of huge benefit to residents.

·        Just over £1M of capital slippage and a net underspend of £300K was detailed at Table 2, which included the need to increase the budget for the Leisure Centre Decarbonisation project.

·        The capacity to deliver would continue to be kept under review.

·        £22M spend on capital projects during the year had been shown in Table 4, and this had been mostly funded by internal borrowing.

·        The minimum revenue provision costs in 2026/27 would be less than anticipated due to capital slippage, and this would be monitored through quarterly review mechanisms.

·        Projects would need to be kept under review moving forward due to Local Government Reorganisation.

 

In response to a question by Councillor Daniel Allen, Councillor Sean Nolan advised that they would speak to IT about the laptop refresh and the associated costs with this if Members were required to have a laptop.

 

Councillor Ian Albert proposed and Councillor Donna Wright seconded and, following a vote, it was:

 

RESOLVED: That Cabinet:

 

(1)   Noted expenditure of £22.002million in 2025/26 on the capital programme, paragraph 8.3 refers.

 

(2)   Approved the adjustments to the capital programme for 2026/27 as a result of the revised timetable of schemes and other adjustments detailed in table 2, increasing the estimated spend by £1.950million.

 

(3)   Noted the position of the availability of capital resources, as detailed in table 4 paragraph 8.7 and the requirement to keep the capital programme under review for affordability.

 

(4)   Approved the application of £1.057million of capital receipts/set aside towards the 2025/26 capital programme, paragraph 8.7 refers.

 

REASON FOR DECISIONS: Cabinet is required to approve adjustments to the capital programme and ensure the capital programme is fully funded.

Supporting documents: