Capital Programme 2022-23 Monitoring Report
North Lanarkshire Council · 14 September 2022
Back to Finance and Resources Committee — 14 September 2022 and its agenda
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North Lanarkshire Council Report Finance and Resources Committee Does this report require to be approved? ☐ Yes ☒ No Ref EK/RMcN Date 14/09/22 Capital Programme 2022/23 Monitoring Report From Elaine Kemp, Head of Financial Solutions E-mail kempe@northlan.gov.uk Telephone 07939 280 601 1. Background 1.1 The Strategic Capital Investment Programme 2021/22 to 2025/26 was originally approved at Policy and Strategy Committee in March 2021, with an updated programme profile for 2022/2023 to 2025/2026 approved in March 2022 and represents the total Community Investment Programme incorporating the General Services Capital Programme and HRA Capital Programmes. The programme was developed in conjunction with Services and led by the Strategic Capital Delivery Group (SCDG) using the principles established by the Council’s Capital Strategy. 1.2 The General Services Capital Programme supported by General Services resources demonstrates to communities that the place making visions for towns remains a priority, and that the Council considers the approved 5-year capital investment plan to be a major boost to assist the recovery of the local economy. It is also a clear statement that the Council is planning beyond the pandemic to deliver on the long-term needs and aspirations of communities. The programme includes additional investment in Town and Community Hubs, the City Deal programme, and external grant funding. 1.3 In addition, the Housing Revenue Account (HRA) resources support several HRA Capital Investment Programmes including Mainstream, Ambition, New Build and Council Buy Back scheme. Executive Summary The purpose of the report is to provide an update on the 2022/23 resources and expenditure for the Council's Strategic Capital Investment Programme. The report also shows the 2022/23 projected outturn position and the resultant variances. Recommendations It is recommended that the Committee: (1) Acknowledges the financial position of the Council’s Strategic Capital Investment Programme as at 22 July 2022. The Plan for North Lanarkshire Priority Improve North Lanarkshire's resource base Ambition statement (25) Ensure intelligent use of data and information to support fully evidence based decision making and future planning
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1.4 The 2022/2023 General Services Capital Programme is £199.005m with a £103.358m investment programme in relation to the Housing Revenue Account. The budget reflects the approved budget in March 2022 at Policy and Strategy Committee and subsequent decisions made at the Strategic Capital Delivery Group (SCDG) in accordance with the SCDG terms of reference and where appropriate either by the individual service committees, Finance and Resources Committee or the Policy and Strategy Committee per the Scheme of Administration. Appendix 1 provides a breakdown of the overall 2022/23 budget by Service Programme and associated approved budget movements. 2. Report 2.1 Overall Council Strategic Capital Investment Programme 2.1.1 The overall Council Strategic Capital Investment programme for 2022/23 and the projected outturn to the 31 March 2023 is summarised in Table 1 below: Table 1 Community Capital Investment Programme Summary 2022/23 Current Programme £000s Projected Outturn £000s Outturn Variance £000s Enterprise & Communities 178,647 178,647 0 Chief Executives 17,854 17,854 0 Adult Health & Social Care 2,504 2,504 0 General Services: Total Capital Investment 199,005 199,005 0 General Services Resources: Net External Grants & Contributions 68,370 68,370 0 Capital Receipts 1,000 4,521 3,521 Capital Receipts -Transfer to Capital Fund 0 (3,521) (3,521) CFCR 3,849 3,849 0 General Services: Total Resources 73,219 73,219 0 General Services : Borrowing Requirement 125,786 125,786 0 HRA : Total Capital Investment 103,358 103,358 0 HRA Resources: Net External Grants & Contributions 17,122 17,122 0 Capital Receipts 0 2 2 CFCR 27,146 27,146 0 HRA : Total Resources 44,268 44,270 2 HRA : Borrowing Requirement 59,090 59,088 (2) Summary Total Council : Capital Investment 302,363 302,363 0 Total Council : Resources 117,487 117,489 2 Total Council : Borrowing Requirement 184,876 184,874 (2)
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2.1.2 On a budgeted programme of £302.363m expenditure is on budget at this early stage of the financial year. Further financial performance information regarding each of the programmes is discussed in section 2.2 and 2.3 below. 2.2 General Services Capital Programme and Projected Outturn by Service/ Programme 2.2.1 The financial performance of the overall General Services Investment programme at 31 March 2023 is detailed in Appendix 2 and summarised below. General Services Total Resources 2.2.2 The revised programme approved by the SCDG is £199.005m with total resources available to meet the current programme forecast to be £73.219m, resulting in a borrowing requirement of £125.786m. 2.2.3 In 2022/23 net external grants and contributions of £68.370m will be utilised. This capital resource primarily includes the Scottish Government (SG) General Capital Grants receivable of £23.681m and other specific SG Grants including City Deal £20.532m, the Place Based Investment Programme (PBIP) £2.436m, Vacant and Derelict Land Fund (VDLF) £2.058m, Regeneration Capital Grant Fund (RCGF) £3.221m, Active Travel £2.184m, Strathclyde Passenger Transport (SPT) £1.725m and Nature Restoration Fund £0.274m. In addition, capital grants received in 2021/22 have been added to the programme including £2.912m for VDLF, £1.315m for PBIP, £1.170m for RCGF, £0.324m for Play Parks, £0.321m for CO2 monitors and £0.272m for Early Years Expansion grant, these applied in the current year to match expenditure as it is incurred, and grant conditions met. Whilst at Period 4 it is anticipated that all capital grant funding will be utilised in 2022/23 this will be monitored closely as the year progresses. 2.2.4 Receipts from the sale of assets are projected to be £4.521m, which is £3.521m greater than the budget of £1.000m. In accordance with the approach agreed within the Strategic Capital Investment Programme 2021/22 to 2025/26, capital receipts above the budgeted level of £3.521m will be transferred to the Capital Fund and drawn down to support the Council’s Change Management Fund requirements. General Services Total Expenditure 2.2.5 As indicated in Table 1 the General Services investment programme is £199.005m. At Period 4, the final outturn spend is anticipated to be on budget. However, the investment programme continues to face a number of risks and challenges associated with programme delivery including inflationary pressures as contractors continue to face issues with the supply of both labour, equipment and materials. The Council’s SCDG continues to monitor the situation closely. Further analysis by service/ programme is outlined below and summarised within Appendix 2. 2.2.6 Enterprise and Communities are projecting outturn expenditure of £178.647m, which is on budget. Committed expenditure of £78.561m is currently reported, which represents 43.98% of the targeted expenditure, and actual expenditure is £21.740m. 2.2.7 Chief Executives are projecting total expenditure of £17.854m, which is on budget. Committed expenditure of £2.778m is currently reported, which represents 15.56% of the targeted expenditure, and actual expenditure is £2.778m. 2.2.8 Adult Health & Social Care projected outturn expenditure is £2.504m, which is on budget. Committed expenditure of £0.216m is currently reported, which represents 8.63% of the targeted expenditure, and actual expenditure is £0.216m.
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2.3 HRA Capital Investment 2.3.1 The financial performance of the HRA Capital Programme is reported in detail to the Housing and Regeneration Committee. A summary of performance as at 22 July 2022 is provided at Appendix 3. Total expenditure of £103.358m is forecast for 2022/23 which is on budget. Committed expenditure of £94.169m is currently reported, which represents 91.06% of the targeted expenditure, and actual expenditure is £23.016m. 3. Measures of success 3.1 N/A 4. Supporting documentation 4.1 Appendix 1: Strategic Capital Investment Programme 2022/23 budget movements Appendix 2: General Services Capital Investment Programme Summary 2022/23 Appendix 3: HRA Capital Investment Programme Summary 2022/23 Elaine Kemp Head of Financial Solutions
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5. Impacts 5.1 Public Sector Equality Duty and Fairer Scotland Duty Does the report contain information that has an impact as a result of the Public Sector Equality Duty and/or Fairer Scotland Duty? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? If Yes, has an assessment been carried out and published on the council’s website? https://www.northlanarkshire.gov.uk/your-community/equalities/equality-and-fairer- scotland-duty-impact-assessments Yes ☐ No ☐ 5.2 Financial impact Does the report contain any financial impacts? Yes ☒ No ☐ If Yes, have all relevant financial impacts have been discussed and agreed with Financial Solutions? Yes ☒ No ☐ The financial impact is outlined within the report. 5.3 HR policy impact Does the report contain any HR policy or procedure impacts? Yes ☐ No ☒ If Yes, have all relevant HR impacts have been discussed and agreed with People and Organisational Development? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.4 Legal impact Does the report contain any legal impacts (such as general legal matters, statutory considerations (including employment law considerations), or new legislation)? Yes ☐ No ☒ If Yes, have all relevant legal impacts have been discussed and agreed with Legal and Democratic Solutions? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.5 Data protection impact Does the report / project / practice contain or involve the processing of personal data? Yes ☐ No ☒ If Yes, is the processing of this personal data likely to result in a high risk to the data subject? Yes ☐ No ☐ If Yes, has a Data Protection Impact Assessment (DPIA) been carried out and e- mailed to dataprotection@northlan.gov.uk Yes ☐ No ☐ 5.6 Technology / Digital impact Does the report contain information that has an impact on either technology, digital transformation, service redesign / business change processes, data management, or connectivity / broadband / Wi-Fi? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact?
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Where the impact identifies a requirement for technology, has an assessment been carried out (or scheduled) by the Enterprise Architecture Governance Group (EAGG)? Yes ☐ No ☐ 5.7 Environmental / Carbon impact Does the report / project / practice contain information that has an impact on any environmental or carbon matters? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.8 Communications impact Does the report contain any information that has an impact on the council’s communications activities? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.9 Risk impact Is there a risk impact? Yes ☒ No ☐ Despite the updated programme phasing approved at Policy and Strategy Committee on 17 March 2022 the capital programme continues to face ongoing delivery risks and challenges. These are currently being managed by services and Project Boards associated with specific programme delivery and will continue to be monitored throughout the year in accordance with the SCDG Terms of Reference.
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2022/23 Strategic Capital Investment Programme – budget movements Appendix 1 Enterprise & Communities Chief Executives Adult Health &Social Care Corporate Total General Services Investment Programme Total HRA Investment Programme Total Community Investment Programme £000s £000s £000s £000s £000s £000s £000s 22/23 Opening programme approved Policy& Strategy Committee 17 March '22 157,167 17,352 2,600 0 177,119 103,358 280,477 21/22 Overs/Unders Carry Forward 5,796 178 (96) 0 5,878 0 5,878 22/23 Budget adjustments approved by SCDG 0 0 0 0 0 0 0 22/23 Policy & Strategy Committee reprofiling 0 0 0 0 0 0 0 Increase/(Decrease) in Externally Funded Projects 11,835 324 0 0 12,159 0 12,159 CFCR 3,849 0 0 0 3,849 0 3,849 22/23 re-profiling of projects to future years 0 0 0 0 0 0 0 Revised Capital Programme 2022/23 178,647 17,854 2,504 0 199,005 103,358 302,363
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General Services Capital Investment Programme Summary 2022/23 - as at 31 March 2023 Appendix 2 Investment Current Programme 2022/23 £000s Projected Outturn 2022/23 £000s Outturn Variance 2022/23 £000s Committed Expenditure @ P4 £000s Committed Expenditure % of Projected Outturn Actual Expenditure @ P4 £000s Enterprise & Communities 178,647 178,647 0 78,561 43.98% 21,740 Chief Executives 17,854 17,854 0 2,778 15.56% 2,778 Adult Health & Social Care 2,504 2,504 0 216 8.63% 216 Total General Services Investment 199,005 199,005 0 81,555 40.98% 24,734 General Services Resources; External Grants & Contributions 2022/23 61,246 61,246 0 External Grants & Contributions b/f 2021/22 7,124 7,124 0 External Grants & Contributions Unapplied cfwd to 2022/23 0 0 0 Net External Grants & Contributions 68,370 68,370 0 CFCR 3,849 3,849 0 Capital Receipts 1,000 4,521 3,521 Capital Receipts - Transfer to Capital Fund 0 (3,521) (3,521) Total Resources 73,219 73,219 0 Borrowing Requirement: General Services 125,786 125,786 0 Total General Services Borrowing Requirement 125,786 125,786 0 Total Resources incl Borrowing Requirement 199,005 199,005 0
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HRA Capital Investment Programme Summary 2022/23 - as at 31 March 2023 Appendix 3 Investment Current Programme 2022/23 £000s Projected Outturn 2022/23 £000s Outturn Variance 2022/23 £000s Committed Expenditure @ P4 £000s Committed Expenditure % of Projected Outturn Actual Expenditure @ P4 £000s Mainstream Programme 52,950 52,950 0 52,950 100.00% 14,007 New Build Programme 39,436 39,436 0 39,436 100.00% 8,653 Council Buy Back Scheme 10,972 10,972 0 1,783 16.98% 356 Total HRA Investment 103,358 103,358 0 94,169 91.06% 23,016 HRA Capital Resources; External Grants & Contributions 17,122 17,122 0 External Grants & Contributions Unapplied 0 0 0 Net External Grants & Contributions 17,122 17,122 0 CFCR 27,146 27,146 0 Capital Receipts 0 2 2 Total Resources 44,268 44,270 2 Borrowing Requirement: HRA - Mainstream 30,474 30,472 (2) HRA - New Build 21,788 21,788 0 HRA - Buyback Scheme 6,828 6,828 0 Total Borrowing Requirement 59,090 59,088 (2) Total Resources incl Borrowing Requirement 103,358 103,358 0