Agenda item

The Leader introduced the report which focussed on the spending of capital resources, and reflected on progress made in the delivery of the programme.  Main points of note:

·         Cabinet approved a new 5 year programme in early 2018, and confirmed the sum of £127m for the period of the programme. 

·         Significant projects of about £25m are now requested to be added with most of that spend in future years but some also beginning in the current financial year.

Key Projects identified:

·         £10m for the development of full fibre network across the Gwent area – Newport is the lead authority on this

·         £3m for a new Devon Place footbridge which will connect the city centre to that part of the city (the commencement date for the installation of the bridge is dependent on the finish date for the electrification works)

·         £1.8m for highways’ refurbishment works

·         £2.4m on recycling services to help residents increase recycling and improve services

·         £1.2m further investment in new and existing children’s homes

·         £1.7m in a renewable energy scheme, helping to reduce energy use and carbon emission  

It was noted these projects are predominantly funded from external grants and savings/new income generated from individual schemes.  About £4.4m of spend on new projects will be incurred in this current financial year.

This represents significant investment in Newport’s infrastructure and the programme is key to delivering on the corporate plan promises and other commitments set out for the city.  The report builds on the commitment to key projects such as community hubs and regeneration schemes. 

Cabinet was asked to approve slippage on the current year’s spend of c£4m into next year and future years which is in addition to previous slippage approved.  In total the report showed that nearly £10m of budget has slipped into future years.  Mitigating factors have affected the budget and the Leader will be taking forward discussions with the Chief Executive and Head of Finance to address this going forward. 

The headroom for further spend in the current capital programme now stands at approximately £17m, which is dependent on some increased borrowing over the programme life with the resulting revenue cost to allow for that.  The Leader confirmed this is clearly a challenging position in the context of the demand for capital resources which continues to outstrip funds available. 

The framework on how the Council will fund and develop the capital programme is detailed in the report and Cabinet was asked to note the current position.

With regard to capital receipts, it was noted the vast majority of receipts are already committed to the schemes identified and work is being done to generate another £1.7m before the year-end which is a key part of the headroom funding.  Cabinet was asked to note the position and the allocation.

Further focus will now be on the delivery and checks and balances of the programme.

The Cabinet Member for Education and Skills commented on the excellent work being taken forward with schools within the 21^st Century Schools Band A and Band B Programmes.

The Cabinet Member for Regeneration and Housing commented on the excellent partnership work with Pobl that has resulted in the flagship scheme for the City Centre in Commercial Street. 

Decision:

Cabinet agreed:

·         To approve the changes to the Capital Programme and note the monitoring position as set out in the report, including the use of capital receipts;

·         To prioritise capital expenditure to maintain spend within the current affordability envelope.