Agenda item

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

The report of the Director of Function (Resources)/Section 151 Officer incorporating the proposed capital budget and programme for 2026/27 was presented for the Executive’s consideration.

Councillor Gary Pritchard, Leader presented the report noting that the scope for spending within the capital budget is limited and although borrowing is possible, it has cost implications for the revenue budget.

The Director of Function (Resources)/Section 151 Officer reported that the capital budget sets out the Council’s strategy for capital expenditure, with priority given to refurbishing and replacing the Council’s existing assets (£6.937m). The Council’s main funding sources for capital expenditure include the Welsh Government’s general capital grant, supported borrowing, capital receipts, and earmarked reserves. Unsupported borrowing remains an option, however in such cases all loan repayments and interest costs would fall entirely on the Council’s revenue budget and borrowing limits apply to ensure the Council does not overextend itself. It is expected that the Council will receive additional grants during the year as in previous years, which will be added to the budget. Appendix 2 to the report provides a detailed breakdown of the final proposed capital budget for 2026/27, showing each scheme, its costs and how it will be funded. Some schemes totalling £8.934m are also carried forward from 2025/26 but this figure may increase as the Council’s accounts are finalised in June and July 2026.

The Section 151 Officer also referred to other areas of investment within the capital budget including improvements to the Council’s waste infrastructure (£3.806m), largely funded through eEPR income. Other major projects include improvements to the Menai Bridge Pier and Pontoon (£225k), Phase 2 of the upgrade of Plas Arthur Leisure Centre (£1.65m) and Pride in Place Fund Projects (£1.5m) which aim to deliver short-term visible improvements to community valued places and spaces by March 2027 and are community led. The HRA capital budget is ring-fenced for housing and focuses on continued investment in the existing stock to ensure compliance with the WHQS (£15.71m), a new extra care and residential facility in Menai Bridge (£14.001m) and new housing development (£1.498m).

Councillor Jeff Evans, Chair of the Corporate Scrutiny Committee reported on the committee’s meeting of 18 February 2026, at which members considered the final draft capital budget report and proposals. The committee reviewed the documentation presented and the responses of Portfolio Members and Officers to the matters raised. They also considered the comments of the Chair of the Resources Scrutiny Panel. Members discussed the HRA capital programme and its funding, noting the pressures on HRA and the need to balance maximising rental income with keeping rents affordable. Having scrutinised the final draft capital budget proposals for 2026/27, the committee resolved to support the proposals and recommend them to the Executive.

Executive members noted that the capital programme and budget are constrained and that these limitations influence what the Council is able to deliver in terms of capital investment . Because funding is restricted, the Council continues to prioritise essential work such as maintaining existing assets leaving limited scope for new initiatives.

Members emphasised however, that the Council does seek to invest in new projects where possible, including in improving the visual environment of the island. Much of this is achieved through securing grant funding and working in partnership with others. The list of schemes in appendix 2 reflects this approach and includes redevelopment and transformation projects  in Holyhead.

Members also welcomed the Pride in Place funding which the Council will allocate to the town and community councils so that individual communities and neighbourhoods can benefit from capital investment that is locally led and locally chosen.

It was resolved to recommend to the Full Council the following capital programme for 2026/27 –

                                                                                     £’000 

2025/26 Schemes Brought Forward (General Fund)    8,394   

Refurbishment/Replacement of Assets                         6,937

Waste Infrastructure                                                        3,806                              

Menai Bridge Pier and Pontoons                                       225                              

Plas Arthur Refurbishment – Phase 2                            1,650                  

Pride in Place                                                                    1,500

Housing Revenue Account                                           31,572

Total Recommended Capital Programme 2026/27     54,084      

Funded By:

General Capital Grant                                                      2,761

Supported Borrowing General                                        5,047

Communities for Learning Unsupported Borrowing   0,000

Capital Receipts Reserve                                                   271

Earmarked Reserves                                                        3,452      

Welsh & UK Government Grants                                  10,044

Unsupported Borrowing (General Fund)                          937

HRA Revenue Account Surplus                                     5,418

HRA External Grants                                                      17,291      

HRA Unsupported Borrowing                                         8,863

2026/27 Total Capital Funding                                      54,084