Agenda item

The Leader presented the report that provided the regular capital additions and monitoring information.

The report included:

·         projects that Cabinet are asked to approve onto the programme;

·         an update to the capital headroom;

·         capital costs incurred to date;

·         projections of spend to the end of the year, and;

·         the current position on capital receipts.

The Leader reported new additions to the programme.  These included six projects costing nearly £2m which are detailed in the report.  The report confirmed these projects are funded from external grant or from revenue budget savings in the service areas concerned which will be vired to fund the associated borrowing costs; therefore, there is no impact on the current capital headroom.  In particular, the Leader drew attention to the Market Arcade refurbishment project which officers are working very hard to progress and which she was pleased to report will be another good step forward in the development of the city centre.

The Leader confirmed that progress in the delivery of the programme and spend is progressing on the current year’s projects; however, the difference between the budgets for this year at £39m and current spend of £15m is still very significant.  The Leader stated that historically there is higher spending in the last two quarters of the financial year but having already reviewed and re-phased this year’s capital programme budgets, further work may well be required.

Notwithstanding this, the Leader was pleased to report good progress is being made on some really valuable and exciting projects for the city, such as:

·         Progressing planning and design work for the Band B school building projects. This represents the beginning of a major £70m investment in schools over the next five years;

·         The east Newport neighbourhood hub which is now operating very well;

·         The Market Arcade project is a challenging project but steady progress is being made;

·         123-129 Commercial Street project is nearing completion and makes a really positive visual impact in that part of the city centre;  the accommodation is also of a very high standard;

·         Planning work for the Transporter Bridge is nearing completion;

·         Good progress is being made on the new children’s residential homes which will make a really positive improvement to the Council’s looked after children.

The Leader confirmed the demand for capital resources outstrips the availability of funding and is currently affordable, but there is still a very significant medium term programme which represents nearly £200m of investments in the city over the next five years. 

The report confirmed that capital receipts are included in the capital headroom.

Cllr Jeavons was pleased to report the work carried out in Park Square Car Park on the LED energy efficiency works had led to less incidents of anti-social behaviour.

Cllr Giles commended the work being taken forward on the 21^st Century Schools Band B initiative.

Cllr Harvey commended officers for the work done in bringing the Newport East Hub to fruition and also the work carried out in connection with the Transporter Bridge.

The Leader and Cllr Truman applauded the South Wales Argus for their ‘Backing Newport Campaign’.  The Leader was delighted that the South Wales Argus had taken the decision to relocate its business to the City Centre.

The report proposed that Cabinet:    

·         Approve the additions to the Capital Programme requested in the report (Appendix A);

·         Approve slippage of £211k;

·         Note the available remaining capital resources (‘headroom’) until 2022/23;

·         Note the capital expenditure forecast position as at November 2019;

·         Note the balance of and approve the allocation of in-year capital receipts.

Decision:

Cabinet:

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

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