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 setting out the financial performance of the capital budget for the 2023/24 financial year that is subject to audit was presented for the Executive’s consideration.

The report was presented by Councillor Robin Williams, Deputy Leader, and Portfolio Member for Finance who provided a summary of the capital budget for 2023/24 as per paragraph 1.2 of the report. The total capital budget for 2023/24 was £67.788m of which £50.574m or 75% was spent to 31 March 2024 giving an underspend of £17.214m.

The Director of Function (Resources)/Section 151 Officer highlighted the importance that grant funding plays in the Council’s capital programme with 63% of the budget and 59% of the actual expenditure being funded from capital grants some of which are awarded competitively. The level of underspending on the programme is not unexpected given the number of large, complex projects involved and the majority of the underspend relates to large projects where unexpected issues or delays have occurred leading to projects slipping; an overview of these projects is provided in paragraph 2.2 of the report. The funding for these projects has been secured and will be carried forward to 2024/25 with no loss of resources for the Council. However an underspend on the Additional Learning Needs Grant is expected to be repaid back to Welsh Government. Councillor Gary Pritchard, Deputy Leader and Portfolio Member for Children, Youth and Housing Services clarified that it had not been possible to comply with the terms and conditions of the grant due to circumstances beyond the Council’s control involving RAAC associated work in Holyhead High school. A request was made to Welsh Government to be allowed to carry forward the underspend but was not approved.

The Executive’s members acknowledged the Council’s dependency on grant funding for a high proportion of its capital schemes and thanked Officers for their time and application in competing for many of the grants that are key to sustaining the Council’s capital programme. Although Members emphasised the importance of maximising grant opportunities, they also noted that a number of grants awarded can be for a specific purpose and their usage tied to projects which may not be a priority for the Council.

The Chief Executive advised that where grants are awarded through a competitive process, they require Officer time, expertise, and initiative to identify opportunities and secure the funding as well as to manage the expenditure thereafter. However as the Council curtails capacity there is a risk that the capacity and expertise to apply for grants in future may be reduced meaning that expectations need to be managed and the grants which the Council competes for may have to be prioritised.

It was resolved –

• To note the draft outturn position of the Capital Programme 2023/24 that is subject to audit.
• To approve the carry-forward of £15.499m to 2024/25 for the underspend on the programme due to slippage. The funding for this will also carry-forward to 2024/25 as per paragraph 4.3 of Appendix A. The revised capital budget for 2024/25 is £59.337m.