Agenda item

To consider a report by the Head of Finance and Audit (copy attached) to update members on the 2024/25 Capital Plan and obtain Council approval.

The Lead Member for Finance, Performance and Strategic Assets, Councillor Gwyneth Ellis, presented the Capital Plan 2024/25 – 2027/28 report (previously circulated). 

Members were provided with an update to the Capital Plan and the Capital Strategy Report for 2025/26.  The Capital Plan recorded all actual and forecast Council Fund (CF) capital expenditure and funding.  The Capital Strategy provided a high level, concise and comprehensive overview of how both CF and Housing Revenue Account (HRA) capital expenditure, capital financing and treasury management activity contribute to the provision of the Council’s services.  The Chartered Institute of Public Finance and Accountancy’s Code of Practice on Treasury Management (the “CIPFA TM Code”) required the Council to approve a Capital Strategy and Prudential Indicators annually.

The full Capital Plan was last reported to Council in February 2024.  Regular updates were presented to Cabinet.

The Council faced financial challenges, as all Welsh councils, due to inflationary and demand-led pressures exceeding the level of forecast funding.  Due to the scale of the financial challenge, principles had been agreed for capital schemes going forward which were set out under 4.2 of the report.

The Capital Scrutiny Group had reviewed capital bids and had made recommendations for inclusion in the Capital Plan from 2025/26 onwards.  These were detailed in Appendix 3 and summarised in Appendix 4.

During discussions, the following points were raised –

(i)             School investment in Denbigh – investment figures had not been included within the plan and the maintenance block had dropped from £3million to £900k.  It was confirmed that for sustainable communities for learning when the full business case had been approved the figures would then appear in the Plan.  Regarding the maintenance block, the figures were for 2024/25 and 2025/26.  What would be in the 2025/26 table would be what had just been approved as part of the block allocation.  In the 2024/25 was what had been allocated over a number of years and had been rolled into that larger figure.  The figure for Schools Capital Maintenance Works was in Appendix 4 of the report.

(ii)            The Capital Plan of 2024/25 included Waste remodelling and clarification was requested as to whether there would be a need for additional capital going forward in 2025/26.  It was confirmed that to date there would be no additional capital required.  Discussions were ongoing with Welsh Government to secure a grant towards the £1.3million which had been approved by Cabinet in October 2024.  Therefore, the figure stated would be lower once the grant was approved.

(iii)          There had been a reduction in the funding for highway maintenance.  Concerns were raised regarding the bad state of repair of roads and investment would be needed before the cost of maintaining the roads escalated.  It was stated that additional funding may be received from Welsh Government but could not currently be confirmed.  This would alleviate some of the pressures on the highway maintenance. 

(iv)          Each allocation produced a full business case and within the business case, the carbon emissions of each scheme had been set out as far as possible and that information would be shared with members.

(v)           It was confirmed that the private sector housing grant of £1.5million would be largely spent for the statutory requirements to provide disabled facilities grants to adapt people’s homes in order for them to be able to maintain their independence and living independently within the community.

(vi)          Members requested if there was a figure in total to bring the Denbighshire highways up to a statutory level of safety etc.  It was confirmed that it would be impossible to provide an exact figure.  A broad figure could be looked at and provided to members at the various Groups where Highways maintenance was reported.  The matter would be referred to the Head of Highways.

(vii)         It was confirmed that the Highways Officer would attend all the Member Area Group meetings, as done in the past to update members on the highways within their areas.

At this point, the Chief Executive recommended that a Council Workshop should be planned to discuss Highways concerns as it was an issue members had numerous queries regarding. 

PROPOSED by Councillor Gwyneth Ellis, SECONDED by Councillor Gareth Sandilands.

A vote took place by a show of hands and it was unanimously agreed to approve the Capital Plan 2024/25 – 2027/28 report.

RESOLVED that –

(i)             Members note the latest position on the current Capital Plan 2024/25 – 2027/28 included in Appendix 1 and the update on major projects included in Appendix 2

(ii)            Members support the recommendations of the Capital Scrutiny Group and the Cabinet for capital bids to be included in the 2025/26 Capital Plan as detailed in Appendix 3 and summarised in Appendix 4

(iii)          Members approve the 2025/26 Capital Plan included in Appendix 1

(iv)          Members approve the Capital Strategy and Prudential Indicators for 2025/26 as detailed in Appendix 5