Agenda item

To present the report of the Scrutiny Manager and the Director of Function (Resources)/Section 151 Officer.

The report of the Scrutiny Manager was presented for the Committee’s consideration. The report outlined the context to the 2022/23 Capital Budget setting process along with the key issues and questions for Scrutiny in evaluating the Executive’s initial capital budget proposals. The following documentation was appended to the report –

4.1 The report of the Director of Function (Resources)/Section 151 Officer to be presented to the Executive on 24 January, 2022 on the initial proposals for the 2022/23 capital budget based on the principles of the capital strategy, including how the capital programme is to be funded and any consequent impact on the general balance and earmarked reserves.

Councillor Robin Williams, Portfolio Member for Finance in presenting the report and the proposed capital programme for 2022/23 of £35.961m, highlighted that it is proposed that a sum of £1.681m from General Balances be used to make up a shortfall in capital funding in 2022/23 with the General Capital Grant from Welsh Government having reduced by £677k for next year compared to the funding received in 2021/22.

The Director of Function (Resources)/Section 151 Officer guided the Committee in greater detail through the various elements of the Capital Programme with reference to the following –

·    The principles of the capital strategy which help determine the Council’s capital programme and against which new bids are assessed.

·    The anticipated funds available to finance the capital programme for 2022/23 as per Table 1 of the report (£35.961m to include £1.681m from General Balances) highlighting that there has been little increase in the general capital allocation received from Welsh Government for a number of years which if it continues at its present level will limit what can be done to refurbishing and replacing existing assets. It is proposed that the sums set out in section 4.2 of the report be allocated for this work in 2022/23.

·    Schemes to the value of £1.322m that due to a number of reasons will not be completed in 2021/22 and will carry forward to 2022/23.

·    Recommended one off capital projects to be funded in 2022/23 as per Table 3 of the report (£1.432m)

·    Projects to be funded from earmarked reserves, service reserves and unsupported borrowing as per Table 4 of the report (£783k)

·    The 21^st Century Schools Programme to which the Council has made a commitment due to the significant amount of Welsh Government funding the schemes will attract and the need to modernise the existing school estate. The 2022/23 Capital Programme allows for the completion of the final Band A project (new Ysgol Corn Hir) and the commencement of Band B projects (extension to Ysgol Y Graig) at a cost in 2022/23 of £8.598m (net of any capital receipts) of which £2.169m will be made up of Welsh Government grant, £1.168m of supported borrowing and £5.61m of unsupported borrowing.

·    The Housing Revenue Account which is ring-fenced to fund costs associated with the Council’s housing stock .The proposed programme for 2022/23 will see £9.55m being invested in existing stock and a further £9.229m will be spent on developing new properties and in purchasing former right to buy properties. The programme will be funded from the HRA Reserve (£3.080m); the revenue surplus generated in 2022/23 (£7.019m); Welsh Government grants (£2.685m) and new unsupported borrowing (£6m).

The Committee thanked the Portfolio Member for Finance and the Director of Function (Resources) /Section 151 Officer for the report and presentation; there were no questions from the Committee on the proposed capital programme.

Having considered the information presented both written and verbally at the meeting it was resolved to recommend to the Executive the draft proposed Capital Budget for 2022/23 as presented.