Composite Capital Budget 2025/31 and Housing Investment Programme 2025/30 – Monitoring Report No.2
Perth and Kinross Council · 26 November 2025
Back to Finance and Resources Committee — 26 November 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: Finance and Resources Committee Date of Meeting: 26 November 2025 Report Title: Composite Capital Budget 2025/31 and Housing Investment Programme 2025/30 – Monitoring Report No.2 Report Number: 25/327 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 It is recommended that the Committee: 2.1 notes the contents of the report. 2.2 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.
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2.3 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. 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 2025/26 to 2030/31 totalling £559.588 million and a five-year gross Housing Investment Programme for 2025/26 to 2029/30 totalling £89.027 million at its meeting on 1 October 2025 (report 25/249 refers). 3.2 This monitoring report advises on current year expenditure to 31 October 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 £560.047 million. Movements from the revised Composite Capital Budget approved on 1 October 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 1 October 2025 Current Estimate Movement £M £M £M 2025/26 140.101 137.062 (3.039) 2026/27 113.258 112.742 (0.516) 2027/28 86.264 88.212 1.948 2028/29 69.249 71.157 1.908 2029/30 70.187 70.245 0.058 2030/31 80.529 80.629 0.100 Total 559.588 560.047 0.459 4.2 The 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: £’000 Increase in Capital Receipts (Section 4.3) 1 Increase in Third Party, Revenue and Developer Contributions (Section 4.4) 458 Increase/(Decrease) in Borrowing (Section 4.5 and 4.6) 0 Total Increase in Gross Capital Resources (Section 4.1) 459
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4.3 There have been no movements in Capital Grants since the last monitoring report, whilst the only movement in Capital Receipts is an increase of £1,000 in estimated Ring-Fenced Receipts in relation to Wheeled Bin Disposals (Section 5.2.5). 4.4 There is an increase of £283,000 in Third Party Contributions for Structural Maintenance and £2,000 for Footways (Section 5.2.3). The remaining adjustments for Third Party Contributions relate to carry forward adjustments from 2024/25 which had been omitted from the last monitoring report on 1 October 2025, in respect to Destiny Bridge (£168,000) and ICT Data Analytics (£5,000). There has been no movement in Revenue Contributions. 4.5 The projected borrowing requirement in 2025/26, which is effectively the balancing item for resources, is £118.320 million. This is £3.498 million lower than the amount approved by this Committee on 1 October 2025 (£121.818 million). 4.6 The total borrowing requirement in the subsequent years 2026/27 to 2030/31 has increased by £3.498 million to £310.677 million, resulting in no overall increase in the total level of borrowing across the whole 6-year programme. This movements in borrowing is summarised as follows: 2025/26 2026/27 2027/28 Later Years Total £m £m £m £m £m Movements relating to rephasing of resources. 0.000 0.000 0.000 0.000 0.000 Movements arising from re-phasing of expenditure and receipts (Appendix II) (3.498) (0.516) 1.948 2.066 0.000 Increase/(Reduction) in Borrowing Requirement (3.498) (0.516) 1.948 2.066 0.000 4.7 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. 86.3% 8.3% 0.4% 3.9% 0.6%0.5% 5.4% Projected Capital Resources 2025/26 (November 2025) Borrowing (£118.478M) Grants (£11.375M) Tay City Deal (£0.550M) Developer Contributions (£5.344M) Third Party & Revenue Contributions (£0.788M) £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 October 2025 on the Composite Capital Programme is detailed in Appendix II and summarised as follows: Projected Outturn (£m) Net Expenditure to 31 Oct 2025 (£m) % of Projected Outturn Environment and Infrastructure 50.004 20.526 41% Housing and Communities 5.901 1.502 25% Economy, Development and Planning 31.435 7.941 25% Property Services 36.652 17.998 49% Customer and Digital Services 5.023 1.096 22% Health and Social Care 0.953 0.668 70% Unallocated 4.977 0.000 0% Total Net Capital Expenditure 134.945 49.731 37% 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 proposes various budget adjustments, the most significant of which are described below. 5.2.2 Within Traffic and Road Network, consultation is currently being undertaken with the local community on the remaining works under the A977 Upgrades programme. Therefore, it is proposed to move the budget of £177,000 from the current year to 2026/27 in line with the revised anticipated timescales for undertaking the work. 5.2.3 Within the Roads Maintenance Partnership, there have been additional Third - Party Contributions totalling £285,000. These relate to Structural Maintenance (£283,000) for works at Tummel Crescent in Pitlochry, and Footways (£2,000) for requests for dropped kerbs on Clova Avenue, Blairgowrie. The expenditure budgets for each of these have been increased accordingly. 5.2.4 Within Structures, it is proposed to move amounts for Old Perth Bridge and Perth Queens Bridge. These adjustments are necessary due to a vacancy in the Engineer post within the team (which has subsequently been filled), allowing time for the reallocation of resources to these projects while considering other high-priority tasks. Additionally, the increasing complexities of the required consultancy services for these projects have contributed to the need for these adjustments. The amounts have been distributed across future years according to the revised anticipated spending on these projects.
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5.2.5 Within the Prudential Borrowing programme, it is proposed to equally spread the Recycling in Schools project across the current year and next year, with the project currently being out to tender. It is also proposed to increase the expenditure budget for the Wheeled Bin Replacement Programme by £1,000 in respect of wheeled bin disposal receipts. 5.2.6 The above proposed adjustments, together with other small movements, 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 proposes the following budget adjustment. 5.3.2 Within Community Greenspace, the timeframe for delivery of improvements to Play Areas and Parks has been revised to reflect current resourcing capacity. It is therefore proposed that £541,000 is moved from Community Greenspace Sites to Play Areas and Parks across 2026/27 and 2027/28. Additionally, it is proposed £194,000 is moved from the current year to 2026/27 in line with the planned works timeframe. 5.3.3 Also, within Community Greenspace, site testing for Cemetery Extensions is ongoing and work is taking place to confirm land ownership. The project is, however, facing staffing resource constraints and the following rephasing is proposed: 2025/26 £m 2026/27 £m 2027/28 £m 2028/29 £m 2029/30 £m 2030/31 £m (0.060) (0.295) 0.139 0.058 0.058 0.100 5.3.4 The above adjustments, together with other small movements, 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 Roads Infrastructure, works are continuing to progress at pace on the Bertha Park Link Road and based on the current programme of works, it is proposed £1.286 million is accelerated from 2026/27 to the current year. At the Perth Eco Innovation Park, a mobilisation contract has commenced for the initial works which includes surveys and works programming. However, based on this, it is proposed £190,000 of the budget is moved from the current year to 2026/27. 5.4.3 The above proposed adjustments, together with other small movements, have been reflected in Appendices I and II.
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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 budget adjustments are proposed 2025/26 £m 2026/27 £m 2027/28 £m Description Methven Primary School Refurbishment (1.000) 1.000 0.000 Construction works delayed following contract tender issues. Perth Grammar School Upgrades (0.819) 0.000 0.819 Ongoing programme of works, with roof works now scheduled for 2026/27. Blairgowrie Recreation Centre (1.700) 1.700 0.000 Phase 2 delayed until all issues with the new facility have been resolved. 5.5.3 Within Property Service Management, £86,000 of initial works at Bells Sports Centre were met form the Capital Improvement Programme in 2024/25, before the Bells Sports Centre proposals were approved by the Council on 18 June 2025 (report 25/162 refers). It is therefore proposed that £86,000 of the budget for Bells Sports Centre is transferred to Capital Improvement Projects in 2025/26 to reflect that this element of work has already been undertaken. 5.5.4 Within the Property Service Management Prudential Borrowing programme, design work is continuing on several projects, including schools, within the Decarbonisation Budget, however it is proposed to delay the works to coincide with match funding becoming available in 2026/27. It is therefore proposed to move £350,000 of the budget from 2025/26 to 2026/27. 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 there is no proposed budget adjustments required at this time. However, it is proposed to remove the Third-Party Contribution budget of £5,000 as this was received in 2024/25. 5.7 Unallocated Resources 5.7.1 There are no movements to Unallocated Resources proposed in this report, with a balance of £4.977 million in 2025/26 and £6.246 million in later years, totalling £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 remains
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unchanged at £89.027 million. Movements across years from the previous estimates are summarised in the table below and detailed in Appendix III. Approved 1 October 2025 Current Estimate Movement £m £m £m 2025/26 41.478 42.138 0.660 2026/27 16.923 17.000 0.077 2027/28 13.633 13.776 0.143 2028/29 8.515 8.015 (0.500) 2029/30 8.478 8.098 (0.380) Total 89.027 89.027 0.000 Total Expenditure to 31 October 2025 (Housing Investment Programme) 6.2 Net expenditure for 2025/26 to 31 October 2025 amounts to £19.190 million with no receipts to date. Therefore, the borrowing requirement for the year to date is also £19.190 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 SHQS Future Developments budgets over various years as follows: • Fire Precautions - £2.115 million for the new contract awarded for the replacement of smoke detectors due to start in November 2025, with £380,000 allocated in 2025/26, £1 million in 2026/27 and £735,000 in 2027/28. • Major Adaptations - £146,000 in 2025/26 for works to convert the former warden’s accommodation at James Court, Crieff Road into one-bedroom flats. • Lift Replacement Programme - £92,000 over 2025/26 and 2026/27 for the lift replacement at Carpenter Court due to start in January 2026. • Controlled Door Entry - £39,000 in 2025/26 to cover works at various locations, with a further £7,000 of third-party recharges. • Rannoch Road Regeneration – £15,000 in 2025/26 to cover the computer network and infrastructure costs as well as other minor costs. • SHQS Future Developments – a total of £2.407 million is proposed to cover the above movements, with £935,000 being allocated from 2026/27, £592,000 from 2027/28, £500,000 from 2028/29 and £380,000 from 2029/30. 6.5 Following representations and discussions with the Scottish Government, the Council has submitted an application for an additional £1.050 million grant for the Buy-Back programme. Accordingly, it is also proposed to increase the Buy Back expenditure budget by this amount. To date, a total of 87 properties has been purchased. 6.6 There are no movements in Capital Receipts or Capital Financed from Current Revenue (CFCR) across the 6-year programme. Consequently, the total
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borrowing also remains unchanged. However, the proposed adjustments in this report and the previous monitoring report on 1 October 2025 (report 25/249 refers) have resulted in just over 50% of the borrowing for the whole 6- year programme now being required in the current year. 6.7 All the proposed movements 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 £134.945 million and represents 92% 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 October 2025 on the Composite Capital Budget is £49.731 million and represents 37% of the proposed revised budget for 2025/26 of £134.945 million. 7.3 The projected net expenditure outturn in 2025/26 for the Housing Investment Programme is £42.138 million and represents 150% 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 October 2025 on the Housing Investment Programme is £19.190 million which represents 46% of the proposed revised budget for 2025/26 of £42.138 million. 7.5 The Council’s total Borrowing Requirement to 31 October 2025, based on the Composite and Housing Investment Programmes, is £60.994 million. 7.6 The estimated overall Council Borrowing Requirement for 2025/26 as a whole has reduced by £2.838 million to £158.774 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 £3.498 million and an increase on the Housing Investment Programme of £0.660 million. 7.7 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 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.
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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