Agenda item

To submit a report by the Director of Function (Resources)/Section 151 Officer.

The report of the Director of Function (Resources)/Section 151 Officer incorporating the proposed capital budget for 2023/24 was presented for the Executive’s consideration.

Councillor Robin Williams, Portfolio Member for Finance, Corporate Business and Customer Experience reported that a Capital Budget of £37.962m for 2023/24 is being proposed comprising of schemes carried forward from 2022/23, the refurbishment/replacement of existing assets, new one-off projects, the Schools Modernisation Programme and the Housing Revenue Account to be funded from a combination of the General Capital Grant, supported borrowing and capital receipts as outlined in Table 1 of the report. The final detailed proposed capital programme is shown in Appendix 2 to the report.

The Director of Function (Resources)/Section151 Officer advised that when the capital outturn report at the end of Quarter 4 2022/23 is presented to the Executive any slippage amounts requested to be carried forward to 2023/24 will be subject to the Executive’s approval at that stage. Also additional capital grants may be made available and subsequently incorporated within the capital budget meaning that the budget and programme as presented represent a starting point and will be revised and updated to reflect any additional funding received.

Councillor Robert Ll. Jones, Chair of the Corporate Scrutiny Committee reported from the Committee’s 28 February, 2023 meeting to which the capital budget and programme for 2023/24 had been presented, and he confirmed that the Committee had given careful consideration to the proposed capital programme and schemes within the context of the limited capital funding available for the general fund and had sought clarification from the Officers and Portfolio Member of how those proposals enable delivery of the Council’s medium term priorities while balancing short-term pressures as well as the extent to which the Council is able to determine its own capital priorities and expenditure.  Having received assurances and advice on those matters, and having considered all the information presented the Committee had resolved to recommend the proposed capital budget of £37.962m to the Executive. 

In response to comments made by the Leader about dwindling capital resources limiting what the Council is able to deliver in terms of capital investment and barely covering essential maintenance with there being a need therefore to make representations to Welsh Government for increased capital funding, the Chair referred to a meeting with regulators earlier in the week at which this matter had been raised.

The Chief Executive confirmed that the regulators had been asked to escalate the issue of the sufficiency of capital funding to national level saying also that although the focus has been predominantly on revenue spending, investment in the Council’s assets and maintenance of the buildings from which the Council’s services are delivered are equally important. Much of the Council’s buildings stock is dated and in need of upgrading with many buildings not meeting the needs of Anglesey’s residents in the way the Council would wish and high inflation has further eroded the value of the Council’s capital resources. The regulators were asked to bring this issue to Welsh Government’s attention for discussion at national level on the basis that ensuring that the Council’s assets are fit for purpose is essential which responsibility is becoming ever more difficult to fulfil with the funding that is available.

It was resolved to recommend to the Full Council the following Capital Programme for

2023/24:

                                                              £’000

2022/23 Schemes Brought

Forward                                                12,373

Refurbishment/Replacement of

Assets                                                    5,682

New One Off Capital Projects                 386

21^st Century Schools                            5,964

Housing Revenue Account                 13,557

Total Recommended Capital

Programme 2023/24                             37,962

Funded By:

General Capital Grant                           3,410

Supported Borrowing General             2,158

21^st Century Schools Supported

Borrowing                                                 919

21^st Century Schools

Unsupported Borrowing                       2,797

Borrowing                                          

HRA Reserve & In Year Surplus          9,221

HRA Unsupported Borrowing                     0

Capital Receipts                                       500

External Grants                                     6,584

2022/23 Funding Brought Forward    12,373

2023/24 Total Capital Funding            37,962