Item 13 - HRA Capital BCR to Period 3
West Dunbartonshire Council · 20 August 2025
Back to Housing & Communities Committee — 20 August 2025 and its agenda
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WEST DUNBARTONSHIRE COUNCIL Report by Chief Officer – Resources Housing and Communities Committee: 20 August 2025 ___________________________________________________________________ Subject: Housing Revenue Account (HRA) Capital Budgetary Control Report to 30 June 25 (Period 3) 1. Purpose 1.1 This report provides an update on the HRA capital programme to 30 June 2025. 2. Recommendations 2.1 Members are asked to: i) note the current position of the 2025/26 HRA capital estimates and the HRA capital plan. ii) note that in year financial performance will be monitored against a 2025/26 capital expenditure estimate of £55.547m and a 2025/26 capital income estimate of £6.290m, a forecast borrowing requirement of £49.257m. iii) note that project life performance will be monitored against a project life expenditure estimate of £345.311m and a project life income estimate of £80.378m, a five-year borrowing requirement of £264.933m. iv) note that at this early stage all projects are on track regarding achieving their planned completion dates and delivering within the updated capital estimate. 3. Background 3.1 The Council approved the HRA Capital Plan for 2025/2026 to 2029/2030 on 5 March 2025. The HRA capital plan estimated £70.590m of capital expenditure and £15.324m of capital income in 25/26, a forecast borrowing requirement of £55.266m. 3.2 Since then, budget adjustments have taken place to reflect up to date information on progress delivering the plan and any need for budget acceleration and budget deceleration from / to future years, and to update the expenditure and income budgets for Affordable Housing Supply projects to reflect the 2024/2025 outturn and to reflect that the most recent cost and income forecasts. The budget adjustments result in revised capital budgets as set out in Exhibit 1. The updated borrowing requirement for 25/26 of £49.257m is £6.009m less than the estimate that Council agreed in March 2025. ITEM 13
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Exhibit 1: Revised HRA Capital Estimates 2025/2026 – 2029/2030 2025/26 BCR03 (£m) Project Life BCR03 (£m) 2025/26 March 25 (£m) Project Life March 25 (£m) Other Capital Expenditure 7.433 26.267 7.433 26.267 Component Replacement 20.881 93.567 20.881 93.567 Void Capital 5.258 19.873 5.258 19.873 Structural & Environmental 3.762 17.320 3.762 17.320 Support Costs 3.100 17.155 3.100 17.155 More Homes Programme 15.113 171.129 30.156 166.469 Total Expenditure 55.547 345.311 70.590 340.651 Total Income -6.290 -80.379 -15.324 -73.009 Prudential Borrowing 49.257 264.932 55.266 267.642 4. Main Issues 4.1 Progress against the 2025/26 capital plan is detailed in: Appendix 1 – HRA Capital Summary BCR03 Appendix 2 – HRA Capital Detail BCR03 4.2 The HRA capital summary report at Appendix 1 reports that planned expenditure and planned income are both in line with the overall project estimates. Appendix 1 reports that there are fifteen capital projects where expenditure is tracked over the multi-year life of the project and twenty-nine projects classified as rolling programme projects / contingency / fees, that is programmes of work where an annual estimate is set each year that takes account of demand, cost, and affordability. 4.3 Appendix 2 shows all projects with approved in year and project life estimates as well as forecast expenditure / income. The appendix highlights a 2025/2026 expenditure budget of £55.447m and a forecast spend of £55.447m. The 2025/2026 capital income budget is £6.290m, with a forecast income of £6.290m. 4.5 Budget assumptions are required to forecast costs / income, especially where projects span multi-year and project finances have yet to be finalised. It is therefore likely that the projected year end position will change during the year. 5. Option Appraisal 5.1 No option appraisal was required for this report. 6. People Implications 6.1 There are no people implications. 7. Financial and Procurement Implications 7.1 The report notes the projected in-year financial position for capital estimates.
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8. Risk Analysis 8.1 The main risks are as follows: (a) The reported variances should be viewed in the knowledge that there are several variable factors which could arise between now and 31 March which could affect the year end results for capital budgets. (b) To forecast for the full year costs budget assumptions have been required. These assumptions continue to change regularly and therefore it is likely the projected year end position will change from that reported. 9. Equalities Impact Assessment (EIA) 9.1 No equalities impact assessment was required in relation to this report. 10. Environmental Sustainability 10.1 No assessment of environmental sustainability was required in relation to this report. 11. Consultation 11.1 All services involved in delivering the capital estimates have been consulted during the compilation of this report. 12. Strategic Assessment 12.1 Proper budgetary control and sound financial practice are cornerstones of good governance and support Council and officers to pursue the strategic priorities of the Council’s current Strategic Plan. This report forms part of the financial governance of the Council. ________________ Laurence Slavin Chief Officer – Resources Date: 20 August 2025 Person to Contact: Jim McCarron Business Partner, Finance 07772 322055 E-mail: james.mccarron@west-dunbarton.gov.uk Appendices: Appendix 1 - HRA Capital Summary BCR03 Appendix 2- HRA Capital Details BCR03 Background Papers: Housing Revenue Account (HRA) Capital Investment Programme, Revenue Budget, and Rent Levels for 2025/26 - Council 5 March 2025. Wards Affected All Wards