Item 18 - Housing Revenue Account HRA Capital Budgetary Control Report to 31 October 2025 (Period 7)
West Dunbartonshire Council · 17 December 2025
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WEST DUNBARTONSHIRE COUNCIL Report by the Chief Officer – Resources Council – 17 December 2025 ___________________________________________________________________ Subject: Housing Revenue Account (HRA) Capital Budgetary Control Report to 31 October 2025 (Period 7) 1. Purpose 1.1 This report provides an update on the HRA capital programme to 31 October 2025. 2. Recommendations 2.1 Council is asked to: i) Note the position of the 2025/26 HRA capital budget and the HRA capital plan as 31 October 2025. ii) Note project life performance is monitored against a £345.489m project life expenditure estimate, a £80.378m project life income estimate and a £265.111m five-year borrowing requirement. iii) Note all projects are currently on track to achieve their planned completion dates and that eleven projects are forecast to deliver a total underspend of £7.999m against their five-year project life budgets. iv) Note in year financial performance is monitored against a 2025/26 capital expenditure budget of £55.547m, 2025/26 capital income budget of £6.290m and a one-year borrowing requirement of £49.257m. v) Note there is an anticipated under spend of £9.475m against 2025/26 budgets reducing the forecast one-year borrowing requirement to £39.782m. 3. Background 3.1 The Council approved the HRA Capital Plan for 2025/26 to 2029/30 on 5 March 2025. The HRA capital plan approved £70.590m of capital expenditure and £15.324m of capital income in 2025/26, creating a borrowing requirement of £55.266m. 3.2 At its meeting on the 27 August 2025, the Housing and Communities Committee agreed budget adjustments that revised the 2025/26 capital expenditure budget to £55.547m and the capital income budget to £6.290m, an updated one-year borrowing requirement of £49.257m. Committee also approved a revised project life budget of £265.111m. A summary of the revised capital budgets is set out in Exhibit 1. ITEM 18
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Exhibit 1: HRA Capital Estimates 2025/26 – 2029/30 2025/26 Forecast BCR07 (£m) 2025/26 Budget (£m) Variance (£m) Project Life Forecast BCR07 (£m) Project Life Budget (£m) Other Capital 6.690 7.433 -0.743 26.052 26.267 Component Replacement 14.778 20.881 -6.103 87.908 93.567 Void 5.775 5.258 0.517 19.873 19.873 Structural & Environmental 1.905 3.762 -1.857 16.653 17.320 Support Costs 3.100 3.100 - 17.155 17.155 More Homes 17.972 15.113 2.859 171.307 171.307 Total Expenditure 50.220 55.547 -5.327 338.948 345.489 Total Income -10.438 -6.290 -4.148 -81.836 -80.378 Prudential Borrowing 39.782 49.257 -9.475 257.112 265.111 4. Main Issues 4.1 Progress against the 2025/26 capital plan is detailed in: Appendix 1 – HRA Capital Summary BCR07 Appendix 2 – HRA Capital Detail BCR07 4.2 The HRA capital summary report at Appendix 1 reports that: • project life expenditure is forecast to be less than budget by £6.541m over the 5-year period of the capital plan. • one project has forecast project life income of £1.458m more than the project budget • consequently, prudential borrowing will be £7.999m less than the approved project life budget over the 5-year period of the capital plan. 4.3 Appendix 2 reports all projects with their approved in year and project life estimates as well as their 2025/2026 expenditure and income forecasts. The appendix reports: • 2025/26 forecast spend of £50.220m, a £5.327m underspend against the 2025/26 budget. • 2025/26 forecast income of £10.438m, a £4.148m over-recovery against the 2025/26 budget. • 2025/26 prudential borrowing forecast of £39.782m, £9.475m less than the approved budget for 2025/26. 4.4 Commentary on the 2025/26 variances above £50,000 are set out in Exhibit 2 below. Exhibit 2: Project Over / Underspends 2025/2026 as at BCR07 Project 25/26 Forecast (£m) 25/26 Budget (£m) 25/26 Variance (£m) Commentary 1 Capitalised Minor Works 3.500 3.715 -0.215 Reduced contractors spend.
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Project 25/26 Forecast (£m) 25/26 Budget (£m) 25/26 Variance (£m) Commentary 2 Environmental Sensors 1.500 2.000 -0.500 Underspend due to challenges getting access to properties 3 Targeted SHQS /EESSH compliance works 5.000 6.628 -1.628 Underspend reflects the changing mix of the capital programme with an increased number of mixed tenure blocks that require owner consent before work can start. This necessary process delays project start. 4 External Component Renewal - Roofs 1.360 2.550 -1.190 Underspend reflects the changing mix of the capital programme with an increased number of mixed tenure blocks that require owner consent before work can start. This necessary process delays project start. 5 Doors/Window s Component Renewals 3.800 4.985 -1.185 Underspend due to challenges getting access to properties. Install team to continue programmed addresses and revisit no accesses to use materials already supplied. Underspend will reduce borrowing requirement. 6 External Stores / Garages / Bin Stores 0.000 0.048 -0.048 Works are being funded from the capitalised minor works budget. 7 Secure entry component renewals 0.000 0.100 -0.100 Works are being funded from the capitalised minor works budget. 8 Statutory / Compliance Works 0.150 0.594 -0.444 Health and safety works are now being delivered across two years. 9 Energy Improvements / Efficiency Works 0.000 0.058 -0.058 Works are being funded from the capitalised minor works budget. 10 Kitchen Upgrade 1.600 2.850 -1.250 Underspend projected as team re-assess and pre- inspect to ensure a focus on necessary renewals led by condition.
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Project 25/26 Forecast (£m) 25/26 Budget (£m) 25/26 Variance (£m) Commentary 11 Bathroom & Shower Replacement 0.600 0.800 -0.200 Underspend projected as team re-assess and pre- inspect to ensure a focus on necessary renewals led by condition. 12 Void House Programme 5.775 5.258 0.517 Contractor voids spend greater than budgeted. 13 Defective structures /component renewals 0.175 0.800 -0.625 Underspend projected as future blocks are pre- inspected for condition and re-prioritisation for completion if necessary. 14 Environmental Renewal - Paths & Environment 1.130 1.000 0.130 Overspend due to mix of work requiring contactors in addition to in-house team. Overspend will be re-profiled across future years. 15 Asbestos Management Works 0.200 0.242 -0.042 Demand lower than anticipated. Underspend will reduce borrowing requirement 16 Multi Storey Flat Strategy 0.400 1.720 -1.320 Revised projection based on timing of programme. 17 Buy Backs 4.000 4.380 -0.380 Revised projection based on the anticipated programme of thirty-five acquisitions to be completed in 25/26. 18 Demolition Programme 0.213 0.140 0.073 Revised projection based on timing of programme. 19 Clydebank East 0.365 0.250 0.115 Revised projection based on development project plan. 20 Pappert 0.875 0.730 0.145 Revised projection based on development project plan. 21 Willox Park Phase1 3.398 2.980 0.418 Revised projection based on development project plan. 22 Bank Street 0.839 1.500 -0.661 Revised projection based on development project plan. 23 Bonhill Gap Sites 5.145 1.600 3.545 Revised projection based on development project plan.
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Project 25/26 Forecast (£m) 25/26 Budget (£m) 25/26 Variance (£m) Commentary 24 Silverton 0.050 0.100 -0.050 Revised projection based on development project plan. 25 Queen Mary Avenue 1.000 0.800 0.200 Revised projection based on development project plan. 26 Future New Build & Related Regeneration Projects 0.000 0.550 -0.550 Revised projection based on development project plan. 27 Scottish Govt Buyback Grant -2.378 -0.550 -1.828 Revised projection based on the distribution of Scottish Government acquisition funding. 28 Bank Street -0.839 -1.500 0.661 Revised projection based on the application of the Strategic Local Programme 29 Bonhill Gap Sites -3.360 -1.600 -1.760 Revised projection based on the application of the Strategic Local Programme 30 Clydebank Health Centre -0.350 -0.375 0.025 Revised projection based on the application of the Strategic Local Programme 31 Other Grant -1.712 -0.406 -1.206 Additional Scottish Government Net Zero Funding awarded to fabric first energy efficiency works 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: 17 December 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 BCR07 Appendix 2- HRA Capital Details BCR07 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