Agenda item

This report provides an update for the Resources Overview and Scrutiny Committee of the Council’s Capital Programme Monitoring.  It sets out the latest phasing of the programme including the latest estimate of available resources and any additions or changes in forecast outturn since the last current position was presented to the Council Meeting 23rd February 2023.

Recommended          -           The Committee notes the progress on capital expenditure to date.

Councillor Peter Britcliffe, Portfolio Holder for Resources and Martin Dyson, Executive Director (Resources) presented this report.

Cllr Britcliffe presented and highlighted the following:

The Council authorised new additions to the capital programme of £8.374m at its meeting on the 23rd February 2023, with £1.440m approved and added to the programme since then. In addition, the capital spend outturn from 2022/2023 slipped £37.615m into 2023/2024, which £35.294m relates to the Levelling Up scheme for Accrington Town Centre, the Leisure Estate Investment and Housing Schemes including Disabled Facilities Grants. The total approved Capital programme now totals £47.429m.

Financing of the programme comes mainly from external grants and contributions (66%) with the remainder coming from capital receipts, earmarked receipts, Section 106, direct revenue financing and external borrowing. Cllr Britcliffe emphasised that borrowing would only occur if required.

The current programme of £47.429m will not be capable of being delivered in the current financial year and it is proposed to now rephrase the programme over a longer period. The Actual expenditure to 30th September 2023 is £2.771m against the latest rephrased budget for 2023/2024 of £14.418m. This equates to 19.22% spend. As the programme has been rephrased, the latest forecasts are now that there will be a small underspend in year of £11,552 with all other schemes in line with the budgeted profile and are expected to be spent in year.

Cllr Britcliffe highlighted the risks to the programme, including capital receipts and external grants not being at the expected levels. These were flagged as a medium level risk but officers are working hard to ensure these risks are mitigated. Other risks include external borrowing and the fact that the majority of the programme covers major schemes which will require close monitoring.

The Chair invited questions from the committee. Cllr Britcliffe and Mr. Dyson responded to the following questions:

-       There is £5 million in borrowing and £5 million from reserves allocated to the Leisure Centre project. Can the Council afford to do this considering the financial issues facing many Councils across the country? What are the revenue budget implications of the borrowing?

-       Leisure Estate Investment Programme – The extent of this programme is dependent on the Council being successful in obtaining external funding of around £6.9m. To date there has been no confirmation on the outcome of these bids and the level of spend on Leisure transformation will be contained within Council resources should these bids be unsuccessful.” What is the situation if some or none of these bids are successful?

-       There’s been several investment projects at Oakhill Park. How can the Council justify this when other parks are in need of expenditure?

The above question prompted a discussion on investment in parks across the borough, notably Peel Park. Cllr Plummer asked if the committee could be provided with a detailed response on investment in Peel Park and the Coppice over the last 5 years. Mr. Dyson agreed to provide this at a later date.

-       Is the Council confident Levelling Up money can be spent by the deadline? Does the external funding for the new leisure centre development come with a deadline and if so is the Council confident this can be met?

-       What is the £50k “Fly Tipping Intervention” for?

-       What is the Council’s current plan for the Civic Theatre and Arts Centre? If required, can capital funding allocated but not yet spent on other projects be diverted to this?

-       How likely is the Council to receive the remaining forecast of £2.5 million in capital receipts?

The Chair thanked Cllr Britcliffe and Mr. Dyson for their report and responses to questions.

Resolved        -          

That the contents of the report be noted; and;

That the Executive Director be requested to provide the committee with details on investment at Peel Park and the Coppice over the last 5 years.