Composite Capital Budget 2024/30 and Housing Investment Programme 2024/29 – Monitoring Report No.4
Perth and Kinross Council · 30 April 2025
Back to Finance and Resources Committee — 30 April 2025 and its agenda
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Our vision is a Perth and Kinross where everyone can live life well, free from poverty and inequality ___________________________________________________________________ Committee or Board: Finance and Resources Committee Date of Meeting: 30 April 2025 Report Title: Composite Capital Budget 2024/30 and Housing Investment Programme 2024/29 – Monitoring Report No.4 Report Number: 25/100 Report Author: John Jennings, Senior Accountant James Salisbury, Accountant Organisational Lead: Scott Walker, Chief Finance Officer ___________________________________________________________________ 1. Purpose 1.1 This report provides a summary position to date for the 6-year Composite Capital Budget for 2024/25 to 2029/30 and the 5-year Housing Investment Programme for 2024/25 to 2028/29 and seeks approval for adjustments to the programmes. 1.2 Sections 1. Purpose 2. Recommendations 3. Background 4. Composite Capital Programme – Gross Capital Resources 5. Composite Capital Programme – Expenditure 6. Housing Investment Programme 7. Budget Overview 8. Impact and Value Assessment 9. Appendices 2. Recommendations It is recommended that the Committee: 2.1 notes the contents of the report.
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2.2 approves the proposed adjustments to the six-year Composite Capital Budget 2024/25 to 2029/30 set out in Sections 5 and 6 of the report and summarised in Appendices I and II. 2.3 approves the proposed adjustments to the Housing Investment Programme Budget 2024/25 to 2028/29 set out in Section 7 of the report and summarised in Appendix III. 2.4 notes progress with the delivery of major Capital projects as summarised in Appendix IV. 3. Background 3.1 The Finance and Resources Committee approved an updated six-year gross Composite Capital Budget for 2024/25 to 2029/30 totalling £623.577 million and a five-year gross Housing Investment Programme for 2024/25 to 2028/29 totalling £96.917 million at its meeting on 5 February 2025 (report 25/25 refers). The Council subsequently approved an updated Composite Capital Budget for 2024/25 to 2029/30 totalling £635.475 million at its meeting on 26 February 2025 (report 25/37 refers). 3.2 This report advises on expenditure to 31 January 2025, and the latest estimate of the projected outturn for each of the years to 2029/30 for the Composite Programme and 2028/29 for the Housing Investment Programme. 4. Composite Capital Programme – Gross Capital Resources 4.1 As a result of the latest monitoring exercise, further adjustments to the budget are proposed. The current estimated total gross capital resources (which includes movements in Capital Receipts, Capital Grants, Contributions and borrowing) available over the six years 2024/25 to 2029/30 amount to £635.464 million. 4.2 Movements from the revised Composite Capital Budget approved on 26 February 2025 for the six years are summarised in the table below, and the constituent elements for each year are shown in Appendix I. Total Gross Composite Capital Resources Approved 26 Feb 2025 Current Estimate Movement £m £m £m 2024/25 164.263 151.879 (12.384) 2025/26 134.707 147.463 12.756 2026/27 135.620 131.218 (4.402) 2027/28 88.558 90.468 1.910 2028/29 64.654 65.909 1.255 2029/30 47.673 48.527 0.854 Total 635.475 635.464 (0.011)
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4.3 The reduction in resources in the current monitoring exercise can be summarised as follows: Total £m Increase in Scottish Government Grant (Section 4.4) 1.485 Reduction in Commercial Property Receipts (Section 4.5) (0.094) Increase in Resources carried forward to future years (Section 4.5) (0.770) Increase in Ring Fenced Capital Receipts (Section 4.5) 0.004 Increase in Third Party Contributions (Section 4.6) 0.327 Increase in Revenue Contributions (Section 4.6) 0.041 Reduction in Borrowing Requirement (Section 4.7 and 4.8) (1.004) Increase in Gross Capital Resources (Section 4.3) (0.011) 4.4 The Scottish Government Capital Grant for 2025/26 has increased by £1.485 million since the provisional allocations used in setting the budget were announced. This increase relates to additional allocations for Climate Change (£1.274 million), Nature Restoration (£80,000) and Active Travel (£131,000). These amounts have therefore now been incorporated into the programme at Appendix I and II. 4.5 Commercial Property Receipts have reduced by £94,000 overall. In addition, a review of expenditure on the programme (Section 5.4.5) has meant that there is an increase in the level of receipts carried forward to future years of £770,000. However, Ring Fenced Capital Receipts for the disposal of waste containers within the Environment and Infrastructure Prudential Borrowing programme have increased by £4,000, thus reducing the Prudential Borrowing by this amount. 4.6 There is an increase of £327,000 in Third Party Contributions, with additional contributions towards Active Travel (£5,000, Section 5.2.2), Broxden Drainage Works (£153,000, Section 5.4.4), Play Parks (£15,000, Section 5.3.2) and Investment in the Learning Estate (£170,000, Section 5.5.2). A Revenue Contribution of £16,000 for Structural Maintenance had previously been included as a Third-Party Contribution, which has now been amended in Appendices I and II. Overall, Revenue Contributions have increased by £41,000 with the above contribution towards Structural Maintenance (£16,000 Section 5.2.3) and a proposed contribution from the Car Park Trading Account (£25,000, Section 5.2.2). 4.7 The projected borrowing requirement in 2024/25, which is effectively the balancing item for resources, is £116.529 million. This is £12.458 million lower than the borrowing requirement approved by this Committee on 5 February 2025. 4.8 The total borrowing requirement in the subsequent years 2025/26 to 2029/30 has increased by £11.454 million to £381.144 million, resulting in an overall reduction of £1.004 million in the total level of borrowing across the whole 6- year programme. This reduction in borrowing is summarised as follows:
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2024/25 2025/26 2026/27 Later Years Total £m £m £m £m £m Environment and Infrastructure - Carry Forward of Resources on the Bridge Refurbishment Programme to 2030/31 (Section 5.2.4) 0.000 (1.000) 0.000 0.000 (1.000) Environment and Infrastructure Prudential Borrowing Programme - Increase in Waste Container Disposals receipts (Section 5.2.7) (0.004) 0.000 0.000 0.000 (0.004) Movements arising from re-phasing of expenditure and receipts (Appendix II) (12.454) 12.200 (3.765) 4.019 0.000 Increase/(Reduction) in Borrowing Requirement (12.458) 11,200 (3.765) 4.019 (1.004) 4.9 The chart below shows the Capital Resources required to fund the 2024/25 Composite Capital Programme following the proposed budget adjustments detailed in this report. 77% 18% -0%2%1%1% Borrowing (£116.529M) Grants (£28.045M) Tay City Deal (-£0.069M) Developer Contributions (£3.707M) Third Party & Revenue Contributions (£1.922M) Receipts (£1.745M) Projected Capital Resources 2024/25 (February 2025) £Million 5. Composite Capital Programme – Expenditure 5.1 Total Expenditure and Proposed Budget Adjustments to the Current Programme 5.1.1 Total expenditure (net of grants and contributions) to 31 January 2025 on the Composite Capital Programme is detailed in Appendix II and summarised as follows:
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Projected Outturn (£m) Net Expenditure to 31 Jan 2025 (£m) % of Projected Outturn Environment and Infrastructure 29.746 19.981 67% Housing and Communities 1.226 0.651 53% Economy, Development and Planning 48.083 26.818 56% Property Services 60.095 48.989 82% Customer and Digital Services 8.637 3.027 35% Health and Social Care 1.202 0.664 55% Unallocated 0.000 0.000 0% Total Net Capital Expenditure 148.989 100.130 67% 5.1.2 Appendix IV includes updates on the progress of delivering the Council’s major Capital projects. 5.2 Environment and Infrastructure 5.2.1 The Strategic Lead has reviewed the programme for Environment and Infrastructure and proposed the following budget adjustments. 5.2.2 Within Traffic and Road Safety, various amounts from the 20mph Signage Programmes, Additional Road Safety Measures and Active Travel in 2024/25 have been re-allocated with the programme, with much of the works now scheduled for 2025/26. The 2024/25 Active Travel programme is also augmented by an increase of £5,000 in Third-party Contributions. Further, there are additional costs of £25,000 for the Car Park Investment at Pitlochry, and it is proposed that this is funded from a contribution for the Car Park Reserve. 5.2.3 Within Roads and Lighting, there are proposed small movements between years for Structural Maintenance (£150,000 from 2024/25 to 2025/26) and Footways (£50,000 from 2025/26 to 2024/25) to match the budget profile with the latest planned expenditure estimates. It is also proposed to transfer £4,000 from the Structural Maintenance budget to Road Safety Barriers in 2024/25. 5.2.4 Within Bridges, it is proposed to drawdown amounts from the Bridge Refurbishment Programme for works in 2025/26, for Bolfrack River (£449,000), Bridge of Tilt (£620,000) and Cor Bridge Culvert (£353,000). It is further proposed to rephase the remaining Bridge Refurbishment budget across future years, including £1 million being allocated to 2030/31. There are also proposed rephasing of the works on Old Perth Bridge and Queens Bridge. 5.2.5 Within Rural Flood Protection Schemes, the budget allocation for Investment in Surface Water Management Schemes (Leaky Dams) approved on 26 February 2025 has been rephased in line with the anticipated programme of works. There are also proposed movements from 2024/25 to 2025/26 within the programme for the Perth Flood Protection Scheme (£204,000) and South Kinross (£159,000).
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5.2.6 Within Climate Change, the additional Scottish Government Capital Grant of £80,000 for Nature Restoration has been added to the expenditure programme in 2025/26. 5.2.7 Within the Prudential Borrowing programme, it is proposed to move a total of £95,000 of expenditure from 2024/25 to 2025/26 in line with the latest estimates of expenditure requirements under the various budget headings. There is also an increase of £4,000 in disposal receipts for old waste containers, which reduces the overall borrowing requirement on the programme. 5.2.8 The above proposed adjustments have been reflected in Appendices I and II. 5.3 Housing and Communities 5.3.1 The Strategic Lead has reviewed the programme for Housing and Communities and proposed various budget adjustments, the most significant of which are described below. 5.3.2 Within Community Greenspace, the following rephasing and virements are proposed, including an additional Third-Party contribution: Project 24/25 £m 25/26 £m 26/27 £m Virement £m Description Play Areas – Improvements Implementation Strategy - (0.024) 0.705 0.666 To support progress made on works undertaken on play areas to date, it is proposed to vire £666,000 from Community Greenspace Sites. Third Party Contribution - (0.015) - - In addition, a third party contribution from Legion Park Friends Group has been allocated in 2025/26 with a corresponding increase in expenditure. Settlement / Neighbourhood Parks - - - 0.270 In order to support anticipated works in Settlement/Neighbourhood Parks in 2026/27 it is proposed £270,000 is vired from Community Greenspace Sites. Community Greenspace Sites - - - (0.936) In line with the proposals above, £654,000 in 2025/26 and £282,000 in 2026/27 is vired to Play Areas and Settlement/ Neighbourhood Parks. 5.3.3 Within Housing Projects, following the transfer of Gypsy Traveller sites to the HRA, future works relating to these sites will be funded by the HRA, and the remaining budgets of £185,000 and £225,000 for Gypsy Traveller Improvement Works are no longer required within the Composite Programme.
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It is therefore proposed that these are returned to Unallocated Capital Resources. It is further proposed that £24,000 for the New Gypsy Traveller Site is brought forward from 2025/26 to 2024/25 to meet fees expected to be incurred this year. 5.3.4 Within Community Planning, no spend is projected on Community-Led Asset Transfers in 2024/25 and it is proposed that the budget of £75,000 is rephased to 2025/26. 5.3.5 All the above proposed adjustments, together with other small movements from 2024/25 to 2025/26, have been reflected in Appendices I and II. 5.4 Economy, Development and Planning 5.4.1 The Strategic Lead has reviewed the programme for Economy, Development and Planning and proposed various budget adjustments, the most significant of which are described below. 5.4.2 Within Improvement Schemes, the Bertha Park Link Road construction timeframe has been accelerated, with the majority of the work now due to take place in 2025/26 with completion scheduled for 2026/27. It is therefore proposed the budget is accelerated as follows: 2024/25 £m 2025/26 £m 2026/27 £m 2027/28 £m Bertha Park Link Road 0.327 8.606 (7.125) (1.808) 5.4.3 Within Perth and Kinross Lighting Action Plan, £298,000 of the 2024/25 budget remains with no further works planned for this year. It is therefore proposed that this is moved to 2025/26. 5.4.4 Within the Commercial Property Investment Programme, £1 million was budgeted for use in 2024/25 to create serviced business units, however work is not scheduled to progress on these until 2025/26. It is therefore proposed that the budget is moved to 2025/26. There is also an increase in costs of £611,000 and additional Third-Party Contributions from Scottish Water of £153,000 for the Drainage Works at Broxden. In addition, it is proposed to remove the proposed works at Ruthvenfield Business centre (£1.356 million). 5.4.5 Other smaller proposed budget adjustments are shown in Appendix II to bring the budgets into line with the current level of expenditure. All these proposed movements result in an overall net reduction in proposed expenditure on the programme of £864,000 in the current period. The overall Commercial Property Investment Programme is currently being reviewed, and further proposals will be brought to this Committee in due course. 5.4.6 Within the Prudential Borrowing Programme, the proposed Hotel Development at 1-3 High Street has been delayed, and it is proposed that the 2024/25 and 2025/26 budgets of £950,000 in each year are moved to 2026/27 and 2027/28.
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5.4.7 All the above proposed adjustments have been reflected in Appendices I and II. 5.5 Property Services 5.5.1 The Strategic Lead has reviewed the programme for Property Services and proposed various budget adjustments, the most significant of which are described below. 5.5.2 Within Project Support, the following rephasings and virement are proposed: Project 24/25 £m 25/26 £m 26/27 £m Virement £m Description Investment in the Learning Estate Third Party Contribution 0.170 (0.170) - - - - - - A Third Party Contribution has been received towards the works at Madderty Primary School for a new external door and car parking improvements undertaken during 2024/25. Riverside Primary School Unallocated Resources - - - - - - (0.133) 0.133 The final account for Riverside Primary School has been received resulting in an underspend of £133,000. It is proposed this is returned to the Unallocated Resources. As above Methven Primary School 0.145 (0.145) - - Design works by the appointed contractor are ongoing and it is proposed £145,000 is accelerated from 2025/26 to 2024/25 to cover this advanced expenditure. Perth Academy 0.105 - (0.105) - Works at Perth Academy are progressing better than expected and it is therefore proposed to accelerate £105,000 from 2026/27. Perth Grammar (0.140) - 0.140 - Perth Grammar works are also progressing, however the works completed in 2024/25 are less than estimated and it is proposed £140,000 is moved to 2026/27. Perth High School Replacement (7.200) 7.200 - - Works at the replacement Perth High School are progressing well and the main contractor has provided an update to the phasing of works as they near completion. Occupation of the building is due in the summer 2025, in line with receiving pupils for the start of the 2025/26
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academic year. It is, however, proposed £7,200,000 is moved from 2024/25 to 2025/26 to agree with the revised spend plan from the contractor. Blairgowrie Recreation Centre Replacement (1.300) 1.300 - - As a result of issues identified in the swimming pool, completion of phase 1 was delayed with a subsequent delay in moving to phase 2. An updated cashflow has been received from the contractor and it is proposed £1,300,000 is moved from 2024/25 to 2025/26 accordingly. 5.5.3 Within Property Service Management the following rephasings are proposed: Project 24/25 £m 25/26 £m Future Years £m Description Property Compliance Works Programme 0.050 (0.050) - Multiple works within the programme are facing increased costs and it is proposed £50,000 is accelerated to cover this expenditure. Capital Improvement Projects Programme 0.135 (0.135) - It is proposed £135,000 is accelerated with works taking place at Bells Sports Centre (£110,000) and increased costs being incurred at Our Lady’s PS for the new fire alarm and boilers (£106,000). These are offset by the rescheduling of other works into 2025/26. PH2O (0.340) - 0.340 Limited spend on PH2O is anticipated in 2024/25 and it is proposed £340,000 is moved to 2029/30. Crieff Drummond Arms Regeneration 0.055 (0.055) - Survey works are ongoing in preparation for a complex demolition in 2025/26. It is proposed £55,000 is accelerated to 2024/25 for these advance works. 5.5.4 Also, within Property Service Management, works at Perth Art Gallery are complete with the venue operating as intended. The remaining budget of £2.895 million is therefore no longer required, and it is proposed that it is returned to the Unallocated Resources budget in 2025/26. 5.5.5 All the above proposed adjustments, together with other small movements, have been reflected in Appendices I and II. 5.6 Customer and Digital Services 5.6.1 The Strategic Lead has reviewed the programme for Customer and Digital Services and proposed various budget adjustments, the most significant of which are described below. 5.6.2 Within the ICT Infrastructure Replacement and Upgrade Programme, various contracts require renewal prior to the 2024/25 year-end, and it is therefore
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proposed £373,000 is accelerated from 2025/26 to match the renewals timeframe. 5.6.3 The Case Management System has not progressed in 2024/25 as previously anticipated, and it is proposed the budget of £80,000 is moved to 2025/26. 5.6.4 All the above proposed adjustments, together with other small movements, have been reflected in Appendices I and II. 5.7 Health and Social Care 5.7.1 Within Technology Enabled Telecare, in line with the number of installs to be completed by the end of 2024/25, as well as bulk purchasing of equipment to receive best value for money, it is proposed £140,000 is accelerated equally from the next three years to 2024/25. 5.7.2 The proposed adjustment has been reflected in Appendices I and II. 5.8 Unallocated Resources 5.8.1 It is proposed that the Unallocated Resources budget in 204/25 of £52,000 is moved to 2025/26. As detailed in this report, it is proposed that the budget in 2025/26 is increased by the transfer of remaining budgets for Perth Art Gallery (£2.895 million, Section 5.5.4), Gypsy Traveller sites (£410,000, Section 5.3.3) and Riverside Primary School (£133,000, Section 5.5.2). It is also proposed that the additional Capital Grant for Climate Change (£1.274 million, Section 4.4) is added to this budget pending consideration of expenditure proposals being brought forward. 5.8.2 Upgrade works have been identified to be required at Perth Concert Hall. It is proposed that £2.895 million is applied from the Unallocated Resources for Phase 1 of the works at Perth Concert Hall, over the next 4 years. 6. Housing Investment Programme 6.1 The total current estimated expenditure, net of contributions, for the Housing Investment Programme over the 5 years 2024/25 to 2028/29 remains unchanged at £96.917 million. Movements across years from the previous estimates are summarised in the table below and detailed in Appendix III. Approved 5 Feb 2025 Current Estimate Movement £m £m £m 2024/25 31.513 28.067 (3.446) 2025/26 22.826 28.098 5.272 2026/27 15.633 14.411 (1.222) 2027/28 14.869 14.265 (0.604) 2028/29 12.076 12.076 0.000 Total 96.917 96.917 0.000
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Total Expenditure to 31 January 2025 (Housing Investment Programme) 6.2 Net expenditure for 2024/25 to 31 January 2025 amounts to £26.555 million and receipts amount to £202,000. Therefore, the borrowing requirement for the year to date is £26.353 million. 6.3 The Strategic Leads for Housing and Communities and Property Services have reviewed the Housing Investment Programme and proposed the budget adjustments outlined below. 6.4 It is proposed to draw down various amounts from the New Build Future Developments budgets from future years to 2024/25 as follows: Beechgrove, Perth - £10,000 to cover professional fees for the development of the site. Former Balhousie Primary School, Perth - £78,000 to cover professional fees for the development of the site. Council House Buy Backs - £514,000 from 2025/26, £514,000 from 2026/27 and £516,000 from 2027/28 to cover the increased number of purchases in 2024/25. 6.5 At Kinloch Gardens, Rattray, 12 properties were purchased in February and March 2025. It has been confirmed that the remaining 8 properties under the proposal will now conclude in April 2025. It is therefore proposed to move £1.412 million of the budget to 2025/26 to cover these purchases, along with the Council Tax Second Home contribution of £400,000. 6.6 In addition, further grant awards of £1.960 million have been awarded for the Council House Buy-Back programme in 2024/25 by the Scottish Government, and it is proposed to increase the budget by this amount. The Buy Backs budget is further augmented by £60,000 of Commuted Sums in 2024/25. A total of 116 properties have been purchased under the Buy-Back programme in 2024/25. 6.7 It is also proposed to allocate part of the SHQS Future Developments Budget in 2026/27 to various schemes in 2024/25, as follows: Triple Glazing - £363,000 to cover works completed in Phase 4 of the programme in the current year in line with the final account. Retrofit Works - £122,000 for energy efficiency works at properties in line with net zero targets. A further £40,000 is proposed for 2025/26 6.8 Various smaller amounts are proposed for Controlled Door Entry (£23,000), Sheltered Housing (£50,000) and Rannoch Road Development (£57,000, with a further £53,000 in 2025/26). These are required to cover additional works at various sites. 6.9 Further, it is proposed to move various amounts from 2024/25 to 2025/26 to reflect the level of work anticipated to be completed in the current year. These proposed movements are summarised as follows:
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St.Catherines Square - £3.325 million, with only stage 2 fees to be incurred in 2024/25. Sound Insulation - £366,000, based on the level of works that will be completed in the current year. Structural works - £243,000, with professional fees only to be incurred in 2024/25 Energy Efficiency - £235,000, with professional fees only to be incurred in 2024/25 Mortgage to Rent - £174,000, as a result of the purchase being placed on hold pending further discussions. Various other smaller proposed movements to match anticipated expenditure in 2024/25, including Multi Storey Flats (£88,000), Lift Upgrades (£100,000), Garage & Lockups (£50,000), Shops & Offices (£50,000), Greyfriars (£20,000) and ICT (£30,000). 6.10 The Housing and Wellbeing Committee approved reduced levels of Capital Financed from Current Revenue (CFCR) when setting the revised Capital Investment Programme for 2025/26 to 2029/30, amounting to £1.892 million across the 5-year programme. These adjustments increase the Borrowing Requirement and have been included in Appendix III, however they are offset by an increase in Capital Receipts in 2024/25 of £90,000. 7. Budget Overview 1.1 The projected net expenditure outturn in 2024/25 for the Composite Capital Budget is £148.989 million and represents 75% of the original 2024/25 budget approved on 24 April 2024 (£198.184 million). The revised budget is based on the latest projections of expenditure and all budget adjustments outlined within this report. 1.2 Net expenditure to 31 January 2025 on the Composite Capital Budget is £100.130 million and represents 67% of the proposed revised budget for 2024/25 of £148.989 million. 7.3 The projected net expenditure outturn in 2024/25 for the Housing Investment Programme is £28.067 million and represents 130% of the original 2024/25 budget approved on 26 April 2024 (£21.536 million). This increase reflects the allocation of future years block budgets to specific projects in 2024/25 over the year and the increase in the Council House Buy-Back programme. 7.4 Net expenditure to 31 January 2025 on the Housing Investment Programme is £26.555 million which represents 95% of the proposed revised budget for 2024/25 of £28.067 million. 7.5 The Council’s total Borrowing Requirement to 31 January 2025, based on the Composite and Housing Investment Programmes, is £99.863 million. The estimated overall Council Borrowing Requirement for 2024/25 as a whole has reduced by £15.994 million to £142.561 million as a result of the monitoring adjustments reflected within this report. This reflects a reduction in estimated borrowing in the current year on the Composite Programme of £12.458 million and the Housing Investment Programme of £3.536 million.
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7.6 In the context of the Capital Budget, the borrowing above refers specifically to the funding of capital expenditure and therefore the need to borrow. The actual amounts and timing of the borrowing is undertaken as part of the Council’s Treasury Management operations and reported within the Treasury Activity and Compliance reports throughout the year. 8. Impact and Value Assessment Impact and Value Assessment 9. Appendices 9.1 Appendix I - Composite Capital Programme - Estimated Capital Resources 2024/25 to 2029/30 9.2 Appendix II – Composite Capital Programme - Summary of Capital Resources and Expenditure 2024/25 to 2029/30 9.3 Appendix III – HRA Capital Investment Programme – Summary of Capital Resources and Expenditure 2024/25 to 2028/29 9.4 Appendix IV – Significant Capital Projects Progress Update