Composite Capital Budget 2025-31 and Housing Investment Programme 2025-30 – Monitoring Report No1
Perth and Kinross Council · 1 October 2025
Back to Finance and Resources Committee — 1 October 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: 1 October 2025 Report Title: Composite Capital Budget 2025/31 and Housing Investment Programme 2025/30 – Monitoring Report No.1 Report Number: 25/249 Report Author: John Jennings, Senior Accountant James Salisbury, Senior 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 2025/26 to 2030/31 and the 5-year Housing Investment Programme for 2025/26 to 2029/30 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. Financial Risks 9. Impact and Value Assessment 10. Appendices 2. Recommendations 2.1 It is recommended that the Committee: (i) notes the contents of the report.
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(ii) approves the proposed adjustments to the six-year Composite Capital Budget 2025/26 to 2030/31 set out in Sections 4 and 5 of the report and summarised in Appendices I and II. (iii) approves the proposed adjustments to the Housing Investment Programme Budget 2025/26 to 2029/30 set out in Section 6 of the report and summarised in Appendix III. (iv) notes progress with the delivery of major Capital projects as summarised in Appendix IV. (v) notes the financial risks set out in Section 8 and Appendix V 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 £635.464 million and a five-year gross Housing Investment Programme for 2024/25 to 2028/29 totalling £96.917 million at its meeting on 30 April 2025 (report 25/100 refers). 3.2 This monitoring report now incorporates the approved Composite Capital Budgets for 2030/31 and the Housing Investment Programme for 2029/30. The report also advises on the final outturns for 2024/25 for both programmes, current year expenditure to 31 July 2025, and the latest estimate of the projected outturn for each of the years to 2030/31 for the Composite Programme and 2029/30 for the Housing Investment Programme. 4. Composite Capital Programme – Gross Capital Resources 4.1 The current estimated total gross capital resources (which includes movements in Capital Receipts, Capital Grants, Contributions and borrowing) available over the six years 2025/26 to 2030/31 amount to £559.588 million. Movements from the revised Composite Capital Budget approved on 30 April 2025 for these 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 30 April 2025 Current Estimate Movement £M £M £M 2025/26 147.463 140.101 (7.362) 2026/27 131.218 113.258 (17.960) 2027/28 90.468 86.264 (4.204) 2028/29 65.909 69.249 3.340 2029/30 48.527 70.187 21.660 2030/31 44.716 80.529 35.813 Total 528.301 559.588 31.287 4.2 The monitoring position has been updated for amounts carried forward from 2024/25 as reflected within the unaudited accounts. The overall movement in the total Gross Resources for the 6 years 2025/26 to 2030/31 shown at Section 4.1 above can be summarised as follows:
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£’000 Resources Brought-forward from 2024/25 to 2025/26: - Property Receipts, including carried forward to future years 264 Capital Grants 6 - Tay City, Developer, Other Third Party and Revenue Contributions 2,791 Borrowing Requirement 12,425 Total Resources Brought-forward from 2024/25 15,486 Increase in Resources from current monitoring: Increase in Capital Grants (Section 4.4) 369 Increase in Capital Receipts (Section 4.5) 6,579 Increase in Third Party, Revenue and Developer Contributions (Section 4.6) 1,391 Increase in Borrowing (Section 4.7 and 4.8) 7,462 Total Increase in Gross Capital Resources (Section 4.1) 31,287 4.3 The resources brought forward from 2024/25 to 2025/26 represent adjustments between the final estimate in 2024/25 and the final outturn. Therefore, these merely represent timing differences and are neutral over the two years. Adjustments arising from the current year monitoring are described in the sections below. 4.4 The Scottish Government has allocated a Capital Grant of £374,000 to the Council in 2025/26 under the Bus Infrastructure Fund (see Section 5.3.2). There is also a reduction of £5,000 in the Road Safety Initiative Grant originally allocated in 2024/25 and carried forward to the current year. These amounts have therefore now been incorporated into the programme at Appendix I and II. 4.5 Commercial Property Receipts have been reviewed which results in an increase of £6.572 million comprising new receipts of £5.087 million and use of brought forward receipts of £1.485 million. Additionally, Ring-Fenced Capital Receipts for the disposal of waste containers within the Environment and Infrastructure Prudential Borrowing programme have increased by £7,000. It is therefore proposed to increase the expenditure budgets by these amounts. 4.6 There is an increase of £1.391 million in Third Party Contributions, with additional contributions towards Structural Maintenance (£155,000, Section 5.2.3), the Bertha Park Link Road (£1.064 million, Section 5.4.3), and Energy Conservation and Carbon Reduction (£41,000, Section 5.5.7); less carry forward adjustments for Active Travel (£2,000) and the Low Carbon Transport Hub (£3,000). There has also been an increase in Revenue Contributions totalling £30,000 in relation to Car Parking – Pitlochry (£11,000), Almondbank Flood Protection Scheme (£11,000) and the Low Carbon Transport Hub (£8,000). In addition, there are adjustments on the Tay City Deal Contribution (£74,000) and Scottish Water Contribution towards Broxden Drainage (£32,000) in 2025/26 to remove the carry forward amounts as a result actual receipts in 2024/25 being higher than estimated by this amount.
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4.7 The projected borrowing requirement in 2025/26, which is effectively the balancing item for resources, is £121.818 million. This is £10.398 million lower than the amount approved by this Committee on 30 April 2025 (£132.216 million). This total can be broken down between borrowing carried forward from 2024/25 (increase of £12.425 million as set out in the table above at Section 4.2) less proposed budget adjustments from the current monitoring (reduction of £22.823 million as set out in Appendix II). 4.8 The total borrowing requirement in the subsequent years 2026/27 to 2030/31 has increased by £30.285 million to £307.179 million, resulting in an overall increase of £7.462 million in the total level of borrowing across the whole 6- year programme. This increase in borrowing is summarised as follows: 2025/26 2026/27 2027/28 Later Years Total £m £m £m £m £m Property Services – Leisure Asset Review (PH2O, Bells etc.) (Section 5.5.5) 0.000 0.000 0.000 7.200 7.200 Environment and Infrastructure Prudential Borrowing – Recycling in Schools Programme and Vehicle Replacement Programme (Section 5.2.7) 0.262 0.000 0.000 0.000 0.262 Movements arising from re-phasing of expenditure and receipts (Appendix II) (23.085) (18.360) (5.104) 46.549 0.000 Increase/(Reduction) in Borrowing Requirement (22.823) (18.360) (5.104) 53.749 7.462 4.9 The chart below shows the Capital Resources required to fund the 2025/26 Composite Capital Programme following the proposed budget adjustments detailed in this report. 86.5% 8.1% 0.4% 3.8% 0.2% 1.0% 5.4% Projected Capital Resources 2025/26 (August 2025) Borrowing (£121.818M) Grants (£11.375M) Tay City Deal (£0.550M) Developer Contributions (£5.344M) Third Party & Revenue Contributions (£0.257M) Receipts (£1.412M) £Million
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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 July 2025 on the Composite Capital Programme is detailed in Appendix II and summarised as follows: Projected Outturn (£m) Net Expenditure to 31 July 2025 (£m) % of Projected Outturn Environment and Infrastructure 50.464 9.095 18% Housing and Communities 6.122 0.227 4% Economy, Development and Planning 31.111 3.451 11% Property Services 40.613 8.849 22% Customer and Digital Services 5.023 0.696 14% Health and Social Care 0.953 0.275 29% Unallocated 4.885 0.000 0% Total Net Capital Expenditure 139.171 22.593 16% 5.1.12 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 proposes various budget adjustments, the most significant of which are described below. 5.2.2 Within Traffic and Road Network, a revenue budget grant has been received towards the 20mph Signage Programme with a focus on utilising this grant first. The capital budget is therefore not required in the current year and it is proposed £119,000 is moved to next year. In addition, with the current closure of the South Street/Scott Street junction in Perth, work to replace the traffic signals originally scheduled for 2026/27 has been brought forward to the current year, and it is proposed £125,000 is accelerated accordingly. 5.2.3 Within the Roads Maintenance Partnership, there has been a net movement in the contributions, with a subsequent increase in the expenditure budget for Structural Maintenance. Included within the movement is a contribution of £249,000 from Scottish Water towards works at Tay Street and Shore Road in Perth. 5.2.4 Within Structures, it is proposed to drawdown amounts from the Bridge Refurbishment Programme for works in 2025/26, for Bolfrack River Retaining Wall (£85,000), Bridge of Tilt (£630,000) and Corb Bridge Culvert (£97,000). It is also proposed to drawdown a further £1.375 million for works on Blairgowrie Bridge between 2025/26 and 2027/28. The drawdowns have been allocated across all future years in line with anticipated spend on the Bridge
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Refurbishment Programme. In addition, the following rephasings are proposed: Project 25/26 £m 26/27 £m Future Years £m Description Perth Queens Bridge (0.078) 0.028 0.050 Limited works are scheduled to take place on Perth Queens Bridge in the current year, with works scheduled to commence in 2026/27. Garry Viaduct 0.051 (0.205) 0.154 Phasing of project has been reviewed with various movements mainly relating to future years in line with expected completion in 2029/30. 5.2.5 Within Flooding, objections have been received on the design for the South Kinross Flood Protection Scheme which needed addressing prior to proceeding (Report 25/25 refers). Advanced utility works are also unable to proceed due to the objections, and it is proposed £1.422 million is moved from the current year to 2026/27. Additionally, within Flooding, the works on Dunkeld and Craigie Burns now has a design contract in place which is progressing the design in the current year and it is therefore proposed £194,000 of the budget is accelerated from future years. 5.2.6 Within Climate Change and Zero Waste, £1.274 million Climate Change Grant from Scottish Government was initially added to Unallocated Resources pending the development of projects for its use. It is now proposed £945,000 of the budget is drawn down from Unallocated Resources for use on various Climate Change projects between 2025/26 and 2027/28, with the remaining £329,000 remaining unallocated within the Climate Change programme in 2025/26 whilst further project options are explored. Also, within Climate Change and Net Zero, additional Scottish Government Capital Grant of £49,000 for Nature Restoration has been added to the expenditure programme in 2025/26. The additional grant monies had also previously been included in the Unallocated Resources pending confirmation of the final allocation. 5.2.7 Within the Prudential Borrowing programme, the Recycling in Schools project has commenced for the purchase of waste bins aimed at improving the recycling rate with additional borrowing of £102,000 included. Further, it is proposed that an additional £160,000 of borrowing is undertaken on the Vehicle Replacement Programme for the purchase of an additional 10 hybrid electric pool vehicles. 5.2.8 The above proposed adjustments, together with other small movements, have been reflected in Appendices I and II. 5.3 Housing and Communities
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5.3.1 The Strategic Lead has reviewed the programme for Housing and Communities and proposes the following budget adjustment. 5.3.2 Within Parking, Public Transport and Civil Contingencies, a Scottish Government grant of £374,000 from the Bus Infrastructure Fund has been confirmed and added to the Council’s General Capital Grant. This amount has also been added to the expenditure programme in 2025/26, for the purpose of design, development and delivery of bus infrastructure measures. 5.3.3 The above adjustment has 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 Roads Infrastructure, the Destiny Bridge and New Kingsway, as part of Perth Transport Futures Phase 2, are complete. There are still costs outstanding and it is therefore proposed to move £0.314 million to 2026/27. However, a revised estimate of the overall cost has resulted in an underspend on the project of £6.703 million and it is proposed this is transferred to Unallocated Resources. 5.4.3 Also within Roads Infrastructure, the Bertha Park Link Road costs are anticipated to be higher than currently budgeted with an additional £249,000 required in the current year and £2.873 million in 2026/27. In addition, a contribution from the Developer of £1.064 million is anticipated to be received in 2030/31. It is proposed to meet the increased estimate by transferring the net amount of £2.058 million from Unallocated Resources. Further, for the A9/A85 Road Junction Improvements it is proposed that £145,000 is transferred from Unallocated Resources to meet increased costs from 2024/25 for land compensation. 5.4.4 The Commercial Property Investment Programme for the remainder of the Capital Programme has been comprehensively reviewed, with distribution of the Economic Development Investment budget to specific projects throughout the region. Appendix II provides the proposed allocation and phasing for the various projects. 5.4.5 The above proposed adjustments, together with other small movements, including small carry forward adjustments, have been reflected in Appendices I and II. 5.1 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.
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5.5.2 Within Project Support, budgets for Braco Primary School Upgrade (£8.5 million) and Pitlochry High School Extension (£8.7 million) have been allocated with the phasing set out in the table below. It is proposed these are funded through a virement from Investment in the Learning Estate with £11.062 million transferred from the current year and £6.138 million in 2026/27. 2025/26 £m 2026/27 £m 2027/28 £m 2028/29 £m Braco Primary School Upgrade 0.150 0.350 3.000 5.000 Pitlochry High School Extension 0.200 0.750 5.000 2.750 5.5.3 Additionally, within Project Support it is proposed £400,000 is vired from Capital Improvement Projects in 2029/30 to the School Toilet Upgrade Programme in 2025/26 to enable the commencement of works in the current year. The following rephasings are also proposed: Project 25/26 £m 26/27 £m Future Years £m Description Methven Primary School Refurbishment (0.670) 0.670 - Works at the school have commenced and this rephasing aligns with the timeline of spend. Technology Upgrades (0.519) - 0.519 The works to be completed in the current year have been reviewed and the budget exceeds that required. The budget for next year is sufficient for planned works and it is therefore proposed £519,000 of the budget is moved to 2027/28. 5.5.4 Finally, within Project Support, works to upgrade the kitchen at the Community School of Auchterarder for free school meals have been delayed due to redirection of resources. It is therefore now anticipated that the majority of works will take place between 2027/28 and 2028/29 and it is proposed that the 2025/26 budget is moved to align with this as follows: 2025/26 £m 2026/27 £m 2027/28 £m 2028/29 £m Community School of Auchterarder (FSM) (1.000) (2.261) 0.750 2.511 5.5.5 At its meeting on 18 June 2025 (report 25/162 refers), the Council approved the allocation of the PH2O budget to the revised PH2O project (£74 million), Bells Sports Centre (£10 million) and the Community Campuses in Kinross and Crieff (£13.2 million). The Council also approved that the overall increase in costs of £7.2 million is to be funded by increased borrowing. These projects are now incorporated within the Capital programme with budget movements proposed to reflect the following phasing: 2025/26 £m 2026/27 £m 2027/28 £m 2028/29 £m 2029/30 2030/31
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PH2O 0.300 1.700 2.000 10.000 30.000 29.847 Bells Sports Centre 0.500 1.500 1.500 3.500 3.000 - Kinross Community Campus Sports Facilities - 0.900 5.000 1.000 - - Crieff Community Campus Sports Facilities - - 1.000 4.000 1.300 - 5.5.6 Additionally, within Property Service Management, following arbitration in relation to a contract dispute, the costs of the Letham Community Wellbeing Hub have increased by £326,000. It is proposed to fund this additional cost from the Unallocated Resources. The following rephasings are also proposed:
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Project 25/26 £m 26/27 £m Future Years £m Description Friarton Depot – Waste Transfer Station (0.221) 0.221 - The spend projection for the current year has been revised with some costs now anticipated in 2026/27 and it is proposed £221,000 is moved accordingly. Crieff Drummond Arms Regeneration (1.442) 1.442 - Demolition works are progressing per the dangerous buildings notice with demolition expected to take significant time due to the condition and location of the building. It is proposed £1.442 million is moved from the current year to 2026/27 in line with anticipated spend profile. Prudential Borrowing: Pullar House – Purchase and Re-purposing (2.799) 1.600 1.199 The purchase of Pullar House will proceed in the current year, whilst the budget also includes amounts for re-purposing of the office space. The re-configuration works will take place over the next few years as the building occupancy increases. It is proposed the budget is revised to align with this timeframe. 5.5.7 Within Prudential Borrowing – Energy Saving and Carbon Reduction Programme, a grant of £41,000 has been received from Salix towards the energy works at Arngask Primary School and the expenditure budget has been increased to reflect this. 5.5.8 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 Customer and Digital Services, the budgets for Hardware and Licences have been transferred to the main ICT Infrastructure Replacement and Upgrade Programme. The following rephasings are also proposed within Customer and Digital Services to align budgets to the revised programme planned by IT: 2025/26 £m 2026/27 £m 2027/28 £m 2028/29 £m 2029/30 £m 2030/31 £m ICT Infrastructure Replacement and Upgrade Programme (0.781) 0.760 0.822 (2.462) (0.240) 1,901 Data and Analytics (0.532) 0.125 0.141 0.138 0.157 (0.029) Supporting Digital (0.090) 0.109 (0.196) 0.208 0.233 (0.264)
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School AV Equipment Replacement Programme (0.016) (0.080) (0.008) (0.074) (0.126) 0.304 5.6.3 In addition to above, the Mosaic system anticipated spend in the current year has been revised upwards slightly and it is proposed that £54,000 of the budget is accelerated from 2027/28. 5.6.4 All the above proposed adjustments, together will smaller 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 and replacements units due to be completed by the end of 2025/26, it is proposed £355,000 of the budget is moved to future years towards the end of the programme. This reflects savings resulting by moving from a 3 year to a 5 year replacement programme, lower supplier costs and lower demand from that originally anticipated. 5.7.2 The budgets for Moving and Handling Office Refurbishment (£29,000) and Developing Support Tenancies (£229,000) have not progressed and it is proposed the budgets are transferred to Unallocated Resources. 5.7.3 The proposed adjustments, together with smaller movements, have been reflected in Appendices I and II. 5.8 Unallocated Resources 5.8.1 The proposals to and from the Unallocated Resources are set out in the following table: 2025/26 £m Later Years £m TOTAL £m Description Opening Resources 1.869 6.246 8.115 Transfers In: Destiny Bridge 6.703 0 6.703 Section 5.4.2 Developing Supported Tenancies 0.229 0 0.229 Section 5.7.2 Moving and Handling Office 0.029 0 0.029 Section 5.7.2 Transfers Out: Bertha Park Link Road (2.058) 0 (2.058) Section 5.4.3 Climate Change Grant (1.274) 0 (1.274) Section 5.2.6 Nature Restoration Fund (0.049) 0 (0.049) Section 5.2.6 Letham Community Wellbeing Hub (0.326) 0 (0.326) Section 5.5.6 A9/A85 Road Junction (0.145) 0 (0.145) Section 5.4.3 Miscellaneous (0.001) 0 (0.001) Carry Forward Adjustments Closing Resources 4.977 6.246 11.223
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5.8.2 After the application of the above proposed adjustments, the balance of Unallocated Resources is £11.223 million over the 6-year programme. 6. Housing Investment Programme 6.1 The total current estimated expenditure, net of contributions, for the Housing Investment Programme over the 5 years 2025/26 to 2029/30 is £89.027 million. Movements across years from the previous estimates are summarised in the table below and detailed in Appendix III. Approved 30 April 2025 Current Estimate Movement £m £m £m 2025/26 28.098 41.478 13.380 2026/27 14.411 16.923 2.512 2027/28 14.265 13.633 (0.632) 2028/29 12.076 8.515 (3.561) 2029/30 20.044 8.478 (11.566) Total 88.894 89.027 0.133 6.2 The increase in net expenditure of £133,000 relates to the amount of resources carried forward from 2024/25 to 2025/26. Total Expenditure to 31 July 2025 (Housing Investment Programme) 6.3 Net expenditure for 2025/26 to 31 July 2025 amounts to £11.171 million with no receipts to date. Therefore, the borrowing requirement for the year to date is also £11.171 million. 6.4 The Strategic Leads for Housing and Communities and Property Services have reviewed the Housing Investment Programme and proposed the budget adjustments outlined below. 6.5 It is proposed to draw down various amounts from the New Build Future Developments budgets from future years to 2025/26 as follows: • Brioch Road, Crieff - £1.234 million to cover construction costs (£2.716 million) for the development of the site, less Scottish Government Grant (£1.242 million) and a Council Tax Second Home Reserve contribution (£240,000). • Kinloch Brae, Blairgowrie - £299,000 to cover construction costs (£783,000) for the development of the site, less Scottish Government Grant (£404,000) and a Council Tax Second Home Reserve contribution (£80,000). • Former Balhousie Primary School, Perth - £263,000 to cover ongoing professional fees for the development of the site. • Beechgrove, Perth - £52,000 to cover ongoing professional fees for the development of the site.
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• Various – a total of £2,000, to cover small carry forward adjustments from 2024/25 required for Huntingtower, Fairfield, Kinloch Gardens, Lynedoch Road Phases 1 and 2 and Weavers Gait. 6.6 The Council House Buy Back Programme has progressed at an increased level in the current year, with 65 purchases completed this year to date. With the multi-storey major refurbishment programme anticipated to commence later this year there has been a significant increase in private owners wishing to sell their property back to the Council. Therefore, it is proposed to increase the Buy Backs budget in the current year by £10.775 million by accelerating this amount spread equally from the subsequent four years of the programme. The current year budget is further enhanced by £1.4 million of Scottish Government grant allocated this year. 6.7 In addition, a further property has been purchased under the Mortgage-to- Rent scheme in the current year. It is therefore proposed to increase the budget in the current year by £75,000, together with £75,000 of Scottish Government Grant awarded for the purchase. Further, third party recharges of £69,000 are estimated on the External Fabric programme in 2025/26, and it is therefore proposed to increase the expenditure budget by this amount. 6.8 It is also proposed to allocate some of the SHQS Future Developments Budget across all years to various schemes, as summarised in the table below. This table also highlights the need to bring forward most of the SHQS Future Developments Budgets from later years: Project 25/26 £m 26/27 £m 27/28 £m 28/29 £m 29/30 £m Total £m Triple Glazing 4.024 4.025 0 0 0 8.049 OT Adaptations 0.500 0 0 0 0 0.500 External Fabric 1.811 1.744 1.228 0 0 4.783 Environmental Improvements 0.978 0.973 0.973 0.973 0 3.897 Bathroom Upgrades 1.178 0 0 0 0 1.178 Energy Efficiency 0.579 0 0 0 0 0.579 Fire Alarm Replacements 0.084 0.166 0 0 0 0.250 Major Adaptations 0.120 0 0 0 0 0.120 Rannoch Road Refurbishment 0.041 0 0 0 0 0.041 149-151 Dunkeld Road 0.029 0 0 0 0 0.029 Fire Precautions 0.002 0 0 0 0 0.002 TOTAL 9.346 6.908 2.201 0.973 0 19.428 SHQS Future Developments (4.066) (1.706) (2.946) (1.839) (8.871) (19.428) Increase/(Reduction) in Borrowing 5.280 5.202 (0.745) (0.866) (8.871) 0 6.9 The remaining proposed budget movement is to move £2.808 million of the budgeted works at St. Catherines Square from 2025/26 to 2027/28, with only professional fees to be incurred this year. 6.10 Due to additional Capital Receipts received in 2024/25 there is a carry forward adjustment in 2025/26 of £97,000. Further, the Revenue Budget monitoring
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for the Housing Revenue Account has identified an increase in Capital Financed from Current Revenue (CFCR) of £201,000 in the current year. These adjustments reduce the Borrowing Requirement by £298,000 for the overall programme, however it should be noted that the level of borrowing in the current year has increased by £11.949 million as a result of the proposed acceleration of the various budgets outlined above. 6.11 All the proposed movement outlined above have been included in Appendix III. 7. Budget Overview 7.1 The projected net expenditure outturn in 2025/26 for the Composite Capital Budget is £139.171 million and represents 95% of the original 2025/26 budget approved on 30 April 2025 (£146.146 million). The revised budget is based on the latest projections of expenditure and all budget adjustments outlined within this report. 7.2 Net expenditure to 31 July 2025 on the Composite Capital Budget is £22.592 million and represents 16% of the proposed revised budget for 2025/26 of £139.171 million. 7.3 The projected net expenditure outturn in 2025/26 for the Housing Investment Programme is £40.478 million and represents 144% of the original 2025/26 budget approved on 30 April 2025 (£28.098 million). This increase reflects the allocation of future years block budgets to specific projects in 2025/26 and the increase in the Council House Buy-Back programme. 7.4 Net expenditure to 31 July 2025 on the Housing Investment Programme is £11.171 million which represents 28% of the proposed revised budget for 2025/26 of £40.478 million. 7.5 The Council’s total Borrowing Requirement to 31 July 2025, based on the Composite and Housing Investment Programmes, is £29.538 million. The estimated overall Council Borrowing Requirement for 2025/26 as a whole has reduced by £10.874 million to £160.612 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 £22.823 million and an increase on the Housing Investment Programme of £11.949 million. 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. Financial Risks
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8.1 In preparing the Council's capital monitoring, officers have considered the key strategic, operational and financial risks facing the Council over this period. Whilst the risks may be managed in the current financial year, given the nature of capital projects these risks are also likely to impact future years plans. 8.2 To alleviate the impact these risks may have if they occur, a number of general risk mitigation factors are utilised by the Council which include detailed budget monitoring carried out by Services and having general unallocated funds available to meet unforeseen expenditure. 8.3 Given the latest monitoring position outlined in this report, the risks to 2025/26 have been removed or reduced. Going forward, risks to future years Capital Expenditure plans will be monitored with mitigating actions identified. The main risks impacting the Capital Budget are maintained in Appendix V. 8.4 These risks are monitored continuously by officers, and any implications on the Capital Budget will be reported to the Committee at the appropriate time. 9. Impact and Value Assessment 9.1 This is an operational report, and as such, an impact and value assessment in not required. 10. Appendices Appendix I - Composite Capital Programme - Estimated Capital Resources 2025/26 to 2030/31 Appendix II – Composite Capital Programme - Summary of Capital Resources and Expenditure 2025/26 to 2030/31 Appendix III – HRA Capital Investment Programme – Summary of Capital Resources and Expenditure 2025/26 to 2029/30 Appendix IV – Significant Capital Projects Progress Update Appendix V – Capital Budget Financial Risks