Agenda item

Report attached.

Members considered a report of Councillor Joyce Plummer, Portfolio Holder for Resources, informing Cabinet of the progress of the 2022/23 Capital Programme.

Councillor Plummer highlighted the key figures within the report.  Members commented that the total Capital Programme figure was unusual, in that it was normally in the region of £1m annually.  However, over the next few years there would be an enormous investment in the Borough.  By working together, councillors and stakeholders could deliver success.  Councillors did not wish to waste any of the money secured, which would be put to good use in improving living standards and the health and wellbeing of Hyndburn’s residents.

Councillor Dad highlighted the decarbonisation works which had been undertaken at Hyndburn Leisure Centre.  He supported the ambition to make the best use of capital expenditure for the benefit the public.  The Leader added that the Leisure Centre was now gas free and was probably the first such sports centre in the country.  It was acknowledged that the running costs might not initially be cheaper, but the project was helping to protect the environment and costs should eventually fall.

Approval of the report was not deemed a key decision.

Reasons for Decision

The Council had authorised a capital programme of £38.594m at its meeting on the 24^th February 2022 and the programme had subsequently been increased to £45.163m upon the authorisation of the carry forward of projects from the previous year and a variety of in-year authorisations using existing internal funds or new external funding.  The programme had largely been funded from existing resources with the exception an approval of £5m of borrowing (if required).

The Actual expenditure to 31^st January 2023 was £3.275m against the latest approved full year budget of £45.164m.  This equated to 7.25% spend.  The forecast spend in year would rise to £6.996m including orders committed which would equate to 15.04%.

There was expected to be £38.256m of slippage into 2023/2024, of which £35.87m related to the Levelling Up scheme for Accrington Town Centre, the Leisure Estate Investment and Housing Schemes, including Disabled Facilities Grants.

There were some expected scheme overspends in year totalling £60,680, however additional funding had been identified to cover the additional costs of those schemes and they would not increase the net cost within the capital programme.

The remaining schemes within the programme had identified forecast underspends of £973,221 due to £950,000 of works now having been incorporated into the successful Levelling Up scheme recently awarded.  The underspends were to be released back into the capital programme and £940,000 had already been earmarked to be set aside as part of the Asset Management / Fire Safety Compliance works as per the report to Cabinet on 8^th February 2023.

The overall net position was that the Capital Programme was forecasting a net underspend of £33,221 in year after the set aside of funds above.

The significant elements of the programme were as follows,

The detail of individual project budgets and expected costs to complete the projects was provided as an Appendix to the report.

There were no alternative options for consideration or reasons

Resolved                                    -    That Cabinet notes the progress on capital expenditure to date.