Agenda item

The report informs the Committee of the proposed capital programme for 2026/27-2028/29.

Recommended                     -  That consideration be given to the report.

The Portfolio Holder for Resources and Council Operations, Councillor Alexander, submitted a report relating to the Council’s Capital Programme 2026/27 – 2028/29. 

The report set out the Council’s capital programme for 2026/27 including forecast slippage on schemes from 2025/26 and the additions of new schemes to the Council’s Capital Programme for 2026/27.

The significant level of investment in previous years had only been possible by the Council obtaining external financial support, as well as the Council’s own effective financial management over recent years which had allowed it to have the funds necessary to finance these major projects when other funding became available.  The new additions to the capital programme have increased to £7.860m (including £1.020 leasing costs) compared to £2.476m in 2025/26.  External funding of £3.20m has been confirmed towards the cost of the new capital schemes (Disabled Facilities Grant, Extended Producer Responsibility Grant (EPR) and Pride in Place Impact Grant) with a further £0.03m funding to be secured. 

The additions to the programme in 2026/27 will bring the total approved capital programme to £38.565m, including forecast slippage of the unspent programme from 2025/26 of £30.706m, which can be seen in Appendix 1 of the report.  The forecast slippage from the 2025/26 programme includes £22.366m (£3.815m slippage to £2027/28) for Huncoat Garden village, £0.40m for the Leisure Estate Investment Programme and £6.251m for the Levelling Up Programme.  The capital budgets for the Levelling Up Programme are based on the latest forecasts of costs, however, as these are not tendered figures, they are still subject to change.

The funding of the 2026/27 capital programme is based on using council reserves and potential capital receipts.  There will be continued emphasis on the realisation of additional capital receipts during the year.  The programme assumes £3.010m of expenditure will be funded from capital reserves, and £0.6m from unfunded receipts.  Any new receipts received will replace the funding required from these reserves. 

The small number of expected new schemes for 2027/28 and 2028/29 (totalling £1.910m) are detailed in Appendix 3 of the report (for information only).

The Council:

·        will continue its strong policies of financial management and look only to borrow what it needs to fund major investment projects.

·        will rely on securing external sources of funding, using capital receipts, making revenue contributions to capital projects and use unspent monies to fund its programme.

·        has appointed experienced professionals to manage its two largest projects, to reduce risks to the Capital Programme.

·        will continue with its strategy to reduce its level of debt.

Details of the Capital Programme are appended to the report.

Members of the Committee submitted two questions in advance of the meeting.  These related to an extract from the Pride in Place Impact Fund prospectus which set out which stakeholders should be involved in identifying priorities and the delivery of the Pride In Place Impact Fund.  The group involved in the process for Hyndburn was the Neighbourhood Board. 

1.     What percentage of members of the public are on the Board and are members of the Board from a wide selection of Hyndburn? 

2.     How would the fund progress be monitored and stakeholder engagement be reported and had any timescales been set?

Two further questions were submitted by members of the public as follows:

1.     There are 12 Projects being financed by the Government’s £1.5 m Pride in Place money.  The Government prospectus requires local authorities to engage and seek support from a wide range of people using existing groups or to set up a new group, who would suggest Pride in Place projects.  Which of the 12 projects were requested by this group and which have been put forward by the Council?

Responses in respect of the Pride In Place money was that the Member of Parliament (MP) had been involved and stakeholder meeting and consultations had been carried out.  These had included the Neighbourhoods Board.  In addition, Ward Councillors had spoken to individuals representing local communities. 

To prevent any confusion, the Committee was reminded that the Neighbourhood Board was responsible for the Plan for Neighbourhoods Fund, which was an investment of over £20m over a 10-year period.  The Price of Place Impact Fund was recently allocated additional Government funding of £1.5m for the Council to invest in the Borough over a 2-year period.

The 12 projects put forward are listed within the Budget papers and the Committee was referred to these.

2.     Further to your issue of the spending in the Hyndburn area can I ask about the statement that is made  ‘  These projects will list alongside our ongoing capital projects which as the £30 million investment in Huncoat Garden Village creating 1800 new homes’.

There is quite a lot mentioned about 30 million relief road, what is the 30 million that your budgeting for in the spending information can you please clarify what this 30 million is going towards in this project. 

Response:  Homes England have awarded £30m towards key infrastructure costs including a new relief road connecting Huncoat directly with the A56, land acquired to deliver the new relief road, brownfield land remediation on the former colliery and power station sties and a contribution towards improvements to junction 8 on the M65 motorway (and potentially to improvements to the nearby Shuttleworth Mead junction) to improvement junction safety.

Councillor Zak Khan made the following comments and raised a number of issues in relation to the Pride of Place schemes.

Councillor Dad explained that all Cabinet Members were involved in decision making for programmed schemes and that discussions had taken place with stakeholders, including the Neighbourhood Board.  Ward Councillors had also spoken to individuals representing local communities.

Councillor Whitehead added that for some Neighbourhood Improvement projects the funding had not yet been allocated.  There would be some small areas that required capital investment to make a difference, but no monies had yet been earmarked for specific schemes.

Cabinet made the following recommendations to Council:

(1)   To approve the Capital Programme for 2026/27 including new scheme additions of £7,860,041 with a net cost to the Council of £3,609,970 as set out in Appendix 3 of the report.

(2)   To approve the funding of the programme by the use of newly awarded direct external grants totalling £3,229,909, lease vehicle borrowing costs £1,020,165 and the remaining funding of £3,609,970 to come from the Council’s resources.

(3)   To note the expected new scheme additions for 2027/28 onwards set out in appendix 1 pf the report.

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

(5)   That the individual projects within the Capital Programme require the written authorisation of the Executive Director (Resources) following consultation with the Portfolio Holder for Resources and Council Operations before commencing and incurring expenditure and that Service Managers provide the Executive Director of Resources with written details of estimated project costs and a full justification of the need for and benefits from undertaking the capital expenditure before such approval is provided and that approval to commence capital projects is delegated to the Executive Director (Resources), in consultation with the Portfolio Holder for Resources and Council Operations.  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.