Agenda item

The report informs the Cabinet of the proposed capital programme for 2024/25 – 2026/27.

Recommended - That consideration be given to the report

The Portfolio Holder for Resources, Councillor Britcliffe, submitted a report relating to the Council’s Capital Programme 2024/25 – 2026/27.  The report set out the Council’s capital investment priorities for 2024/25 including forecast slippage on schemes from 2023/24 and the additions of new schemes to the Council’s Capital Programme for 2024/25.   The significant level of investment in previous years has only been possible by the Council obtaining external financial support as well as the Council’s own effective financial management.  The new additions to the capital programme have reduced to £4.404m compared to £8.374m in the previous year.  External funding of £2.543m has been secured towards the cost of these new capital schemes.  The additions to the programme in 2024/25 will bring the total approved capital programme to £36.104m, including forecast slippage of the unspent programme from 2023/24 of £31.700m, which can be seen in Appendix 1 of the report.  The forecast slippage from the 2023/24 programme includes £10.885m for the Leisure Estate Investment Programme and £17.116m for the Levelling Up Programme which are projects which are expected to be ongoing for the next 1-2 years.

The Council intends to continue its strong policies of financial management and look only to borrow what it needs to fund these major investment projects.

The Revenue implications to finance the Capital Programme continue to be a key element in the affordability issues on the Revenue Budget this year.

Members referred to the cost of bringing Oswaldtwistle Civic Theatre into use and the Committee was informed that estimates were being sought for the renovations and that, long term, the investments in the Civic Theatre and King George V Pavilion would be cost effective. 

Cabinet made the following recommendations to Council:

(1)   To approve the Capital Programme for 2024/25 including new scheme additions of £4,404,015 with a net cost to the Council of £1,861,000 as set out in Appendix 3 of the Appendix to the covering report.

(2)   To approve the funding of the programme by the use of newly anticipated direct external grants totalling £2,543,015 with the remaining funding of £1,861,000 to come from the Council’s resources.

(3)   To note the expected new scheme additions for 2025/26 and 2026/27.

(4)   That delegated authority is given to the Executive Director (Resources), in consultation with the Portfolio Holder for Resources to flex the programme in accordance with the available funding, provided this does not require any additional borrowing.

(5)   That the individual projects with the Capital Programme require the written authorisation of the Executive Director (Resources) following consultation with the Portfolio Holder for Resources before commencing and incurring expenditure and that Service Managers provide the Executive Director of Resources with written details of estimated costs of schemes with full justification of the need and benefits from undertaking the capital investments before approval is provided and that approval to commence is delegated to the Executive Director (Resources), in consultation with the Portfolio Holder for Resources.  That where he deems it appropriate, the Executive Director (Resources) be given authority to release funding in stages to ensure effective financial control can be maintained and the project risk managed.

(6)   That in-year underspends are not made available to fund new projects during the year.

Resolved                               -   That the contents of the report be noted and supported.