Agenda item

The Leader presented the report which identified new projects requiring Cabinet approval into the programme, an update on the level of capital resources and forecasts for this year’s spend against budgets.  

In terms of new projects listed in the report, most are funded from Section 106 monies and grants, with a few requiring funding from borrowing, thereby utilising the current level of capital resources headroom. In particular, the Leader drew attention to the ‘accessible bike scheme’ in Tredegar Park which will provide the opportunity for people less able bodied to engage in activities alongside parents, children and carers.  Also, the need to purchase new Christmas Lights for the city given the problems being experienced with the current ones which are becoming too difficult to maintain.

As part of the on-going review of the programme, the finance team have co-ordinated a review with colleagues across services and much of that work is complete, with a couple of key areas still outstanding, the Leader having been assured this will be completed over the next few weeks. 

This has resulted in one large scheme being taken off the programme since Cardiff City Region are now delivering it, plus a number of budgets slipped into future years.  When the work is complete, the programme should be more realistic in terms of delivery capacity and less slippage in the delivery of the programme; last year’s slippage was £14 million

The report detailed the capital resources headroom figure which is approximately £10m, with approximately the same proposed from new borrowing capacity in the revenue budget over the next 2-3 years.  This will inevitably move each time it is reported and the review of the capital programme already mentioned may add to it, plus further grants and other funding that may come from Welsh Government in the future. The figure is noted in the report.

In terms of monitoring, the report shows a good level of progress, as usual a lot of the cost is predicted in the last half of the year.  This brings with it the risk of slippage, but the finalisation of the review will help in that respect.  Progress is being made on a number of projects, some of which are now nearing completion – for example, neighbourhood hubs and 123-129 Commercial Street.  The Leader thanked the late Carl Sargeant for his personal support with the Commercial Street project as without his input this would not have come to fruition.  Progress is also being made with important projects such as the Transporter Bridge and the planning and delivery of the Schools’ Band B programme; details of which are noted in the report.

Cllr Harvey commended the introduction of the Tredegar Park Pedal Power initiative which will be used throughout the year helping people of all ages and abilities.  This is the first of its kind in Newport but welcomed by all, not just by those who are less able bodied.

Cllr Cockeram raised the issue of Welsh Government providing grant funding in a more timely manner; it was understood that two Ministers are looking into this.

Cllr Mudd commended the Commercial Street project which is a creative development achieved via collaborative working and is also achieving the aims of the Wellbeing of Future Generations (Wales) Act 2015 legislation.

Cabinet noted that the capital programme headroom is a dynamic figure which acts as a guide to the actual capital affordability.

The Leader recommended that Cabinet: 

1.    Approve the additions to the Capital Programme requested in the report (Appendix B);

2.    Note the current re-phasing of the overall programme completed to date and further work required to complete;

3.    To note the available remaining capital resources (‘headroom’) over the life of the capital programme;

4.    To note the capital expenditure forecast position as at July 2019;

5.    To note the balance of and approve the allocation of in-year capital receipts.

Decision:

1.    Approved the changes to the Capital Programme and noted the monitoring position as set out in the report, including the use of capital receipts;

2.    Agreed to prioritise capital expenditure to maintain spend within the current affordability envelope.