Item 20 - Review of West Dunbartonshire Councils Capital Programme
West Dunbartonshire Council · 17 December 2025
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WEST DUNBARTONSHIRE COUNCIL Report by Chief Officer – Resources Council: 17 December 2025 _______________________________________________________________________________ Subject: Review of West Dunbartonshire Council’s Capital Programme 1. PURPOSE 1.1 To provide Council with the outcome of a review of the Council’s capital programme and present recommendations to reduce the capital programme in response to concerns about financial sustainability. 2. RECOMMENDATIONS 2.1 It is recommended Members: i) Approve the removal of the 7 projects listed in Exhibit 4a of the report from the Council’s capital plan ii) Approve reduced budget allocations to the 6 projects listed in Exhibit 5a of the report. iii) Approve reduced budget allocations to the 4 recurring budget lines listed in Exhibit 6a of the report. iv) Note these amendments will remove a total of £7.169m capital expenditure from the Council’s long term capital programme and generate an estimated £0.154m in revenue savings in 2025/26. v) Note these amendments will reduce the budget gap in 2026/27 by £0.248m, 2027/28 by £0.353m, 2028/29 by £0.433m, 2029/30 by £0.441m and 2030/31 by £0.156m 3. BACKGROUND 3.1 On 5 March 2025, the Council agreed an updated Capital Plan with a range of specific projects and also recurring projects for areas where it is recognised there needs to be a degree of capital spend each year (for example building upgrades, roads maintenance, vehicle replacement etc). 3.2 The Capital Plan profiles capital expenditure over the life of the plan. Exhibit 1 summarises that profiled expenditure over the period to 2033/34. Exhibit 1 - Summary of Capital Expenditure as at March 2025 Budget Meeting (costs in £000) Service No 25/26 26/27 27/28 28/29 29/30 30/31 31/32 32/33 33/34 Total 25/26- 33/34 Recurring 14 17,024 13,341 11,920 11,216 10,863 10,863 10,863 10,622 10,997 107,709 RES* 14 4,831 5,175 386 0 0 0 0 0 0 10,391 R&R* 13 8,584 14,503 4,123 0 0 0 0 0 0 27,210 ITEM 20
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R&N* 28 31,435 17,410 10,938 100 100 100 100 100 100 60,382 EDU* 5 12,343 2,854 100 100 107 0 0 0 0 15,504 P&T* 3 346 48 49 49 59 0 0 0 0 551 Total 77 74,562 53,331 27,516 11,465 11,129 10,963 10,963 10,722 11,097 221,748 *RES – Resources *R&R – Regulatory & Regeneration *R&N – Roads & Neighborhood *EDU – Education *P&T – People & Technology 3.3 The Council receives a general capital grant from the Scottish Government each year (approximately £6m). Any spend above this level, not funded from other grants, is funded through borrowing. Capital spend funded from borrowing results in loan charges until the borrowing is fully repaid. Exhibit 2 summarises how the capital expenditure in each of the years between 2025/26 and 2033/34 is currently projected to be financed. Exhibit 2 - Financing the Capital Programme 2025/26-2033/34 Service 25/26 26/27 27/28 28/29 29/30 30/31 31/32 32/33 33/34 Total 25/26- 33/34 Borrowing 20,365 38,127 20,323 7,140 6,804 6,638 6,638 6,397 6,772 119,204 Ring Fenced Capital Grant 21,887 8,345 2,299 0 0 0 0 0 0 32,531 General Capital Grant 18,704 3,407 3,407 3,407 3,407 3,407 3,407 3,407 3,407 45,960 Matched Funding 2,037 1,098 912 818 818 818 818 818 818 8,955 Other 11,569 2,354 575 100 100 100 100 100 100 15,098 Total 74,562 53,331 27,516 11,465 11,129 10,963 10,963 10,722 11,097 221,748 3.4 Exhibit 2 shows the Council’s current capital programme will require £119.204m of prudential borrowing over the period 2025/26 to 2033/34 based on current projections. That represents 54% of the total planned capital programme expenditure. 4. MAIN ISSUES Financial Sustainability of the Capital Programme 4.1 The ongoing financial pressures continue to have a significant impact on both the sustainability and delivery of the Council’s capital programme. Cost Escalation 4.2 Persistent inflationary trends across construction and related sectors have driven up the cost of materials, labour, and specialist services. Contractors and suppliers are increasingly incorporating risk premiums to cover anticipated future price increases, particularly for projects with extended delivery timelines. It is reasonable to assume that any projects costed within the last 12–18 months may now require
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materially higher budgets than those currently reflected in the Capital Plan. Emerging Risks for 2025/26–2033/34 4.3 In addition to inflation several emerging factors will influence the cost of the Capital programme over the medium term: o Decarbonisation Requirements: increasing regulatory and policy commitments to achieve net-zero emissions will require investment in sustainable materials and technologies, often at a premium cost. o Interest Rate Volatility: higher borrowing costs could reduce the Council’s capacity to finance large-scale projects without impacting revenue budgets. o Skills Shortages: labour market constraints in construction and engineering sectors may lead to higher contractor rates and longer project timelines. o Technological Obsolescence: rapid changes in ICT and fleet technology will necessitate more frequent upgrades, increasing recurring capital demands. Cost of Funding the Capital Programme 4.4 As shown in Exhibits 1 and 2, the revised Capital programme allocates a total capital budget of £221.748m over the period 2025/26 to 2033/34. The programme continues to be funded through a combination of borrowing, Scottish Government grants, and other external sources: o Borrowing: £119.204m (54% of total) will be financed through borrowing, making the programme highly sensitive to interest rate movements and debt servicing costs. o General Capital Grant: £45.960m is expected from the Scottish Government’s General Capital Grant. o Ring-Fenced Grants: £32.531m linked to specific projects and subject to strict eligibility criteria. o Other Sources: Matched funding and other contributions total approximately £24.053m, but these often require competitive bidding and partnership arrangements. Given the reliance on borrowing and the volatility of interest rates, the financial sustainability of the programme remains a key concern. Implications for Capital Plan Review 4.5 These financial and operational pressures highlight the need for a comprehensive review of the capital programme to ensure investment priorities remain deliverable within the Council’s financial capacity. Impact of Interest Rate Movements and Cost Inflation
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4.6 It is widely recognised that interest rates have risen significantly compared to previous projections, placing additional pressure on the financial sustainability of the Capital Programme. Public Works Loan Board (PWLB) borrowing rates currently sit at approximately 4.5%, whereas in March 2022, when the Capital Plan was last subject to a comprehensive review, long-term borrowing of up to 10 years could be secured at around 2.3%. To illustrate the impact, in 2022, a capital project costing £10m at an interest rate of 2.3% repaid over 40 years would have resulted in a total payback of £14.7m. At current PWLB rates of 4.5%, the payback rises to £19.2m, an increase of £4.5m or 31%. Impact of Capital Spend on Future Revenue Budgets 4.7 The repayment of borrowing used to fund capital projects creates a long term revenue budget commitment over the lifespan of the asset. Additional borrowing to fund higher-cost projects will increase the Council’s overall debt position and result in substantial interest charges and repayment of the loan principal. 4.8 The Council has a statutory obligation to balance its budgets. The revenue budget continues to face significant pressure. Higher interest rates have further compounded these challenges, meaning any new capital investment will add additional strain to the loans charges element of the revenue budget. Members should also note that, beyond the increased cost of financing, completed assets often bring additional ongoing revenue commitments for maintenance, lifecycle replacement, and operational costs. 4.9 Decisions on future capital investment must focus on achieving best value for money for the Council. This includes prioritising projects that safeguard essential services, mitigate key risks, and align with statutory and strategic objectives. Approach to Review of the Capital Programme 4.10 This review of the Council’s capital programme builds on the review in 2022 where Council agreed to reduce the plan by £31.985m. It has focused on non-recurring projects considered non-essential or discretionary and annual recurring projects where the value remains static year on year and could be reduced. o 4.11 The capital programme was reviewed by a sub-group of the Strategic Asset Management Group, chaired by the Chief Officer Resources. Initial proposals and questions were issued to all Chief Officers regarding projects allocated to their services and opportunities provided to Chief Officers to provide detailed programmes in respect of the recurring programmes. Responses and feedback were considered and informed the recommendations set out in this report.
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4.12 For each line in the Capital Programme, a recommended action has been identified: Remove – cancel the project. Reduce – reduce the allocated budget over the life of the programme. Keep – retain the project with no changes. Financial Impact of Recommended Actions 4.13 If the recommendations in this report are fully accepted then: o Removed Projects: Seven projects with a combined capital budget of £0.408m in 2025/26 and additional allocations in future years (2026/27–2029/30) of £2.104m, making an overall reduction of £2.512m. o Reduced Specific Projects: Six projects, with a combined capital budget reduction of £1.511m in 2025/26 and additional reductions in future years (2026/27–2029/30) totaling £0.388m, giving an overall reduction of £1.899m o Reduced Recurring Project: Four projects, with a combined capital budget of £0.230m in 2025/26 and additional allocations in future years (2026/27–2033/34) totaling £2.528m, giving an overall reduction of £2.758m across the programme period. These reductions reflect adjustments to recurring projects to align with revised priorities and affordability constraints. Following the latest review and re-profiling exercise for the 2025/26 capital programme, the combined effect of these changes will reduce the overall capital programme by £7.169m across the period 2025/26 to 2033/34. This will deliver revenue savings in 2025/26 of £0.154m and reduce future budget gaps by: 2026/27 – £0.248m 2027/28 - £0.353m 2028/29 - £0.433m 2029/30 - £0.441m 2030/31 – £0.156m It will also generate further revenue savings beyond 2030/31 due to the ongoing reductions in the recurring capital budgets and consequential reductions in loan charges. These have not been calculated at the current time as the Council’s future budget estimates only extend to 5 years and loan charges estimates are reviewed on an annual basis. These changes improve affordability and ensure that planned expenditure is aligned with realistic delivery schedules and revised priorities. 4.14 Exhibits 4a – 6c summarise the rationale for each project removed or reduced and the capital and revenue impacts of the recommended action.
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Exhibit 4a – Projects Recommended for Removal Service Project Rationale RES 7 New Sports Changing Facility Dumbarton West Minor spend to date and project has not progressed for an extended period of time due to site constraints. The demand for a facility in this location is currently unknown. RR 1 Legal Case Management System Service has confirmed system is no longer required. RR 2 Installation of Solar PV at Clydebank Leisure Centre Project has not progressed for an extended period. If a future requirement is recognised a capital bid can be submitted to reflect estimated costs and a programme of works. RR 3 Leisure Energy projects - air handling units, upgrade lighting, circulating pumps, and draught proofing Project has not progressed for an extended period. Consideration will be given whether this can sit within an existing revenue or capital budget for service area or a capital bid could be submitted once future costs and programme are known. RR11 Securing sites to make safe As reported to Infrastructure Regeneration and Economic Development Committee on 21 May 2025 this project has been completed. The residual budget should have been removed at that time however was carried forward in error. This removal corrects that error. RN 17 Waste Transfer Station The project has not progressed and is currently on hold. Some expenditure has been incurred for work which will inform and support the development of a future project when it is resumed. RN 22 Kilmaronock Cemetery Extension Excess budget with no spend allocated for remainder of financial year. Exhibit 4b – Reduction in Capital for Projects Recommended for Removal Service Project Budget 2025/26 (£m) Budget 2026/27 (£m) Budget 2027/28 (£m) Budget 2028/29 (£m) Budget 2029/30 (£m) Project Life (£m) RES 7 New Sports Changing Facility Dumbarton West 0.340 0 0 0 0 0.340 RR 1 Legal Case Management System 0.033 0 0 0 0 0.033 RR 2 Installation of Solar PV at Clydebank Leisure Centre 0 0.057 0 0 0 0.057 RR 3 Leisure Energy projects 0 0.226 0 0 0 0.226
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RR11 Securing sites to make safe 0.030 0 0 0 0 0.030 RN 17 Waste Transfer Station 0 0 0 1.821 0 1.821 RN 22 Kilmaronock Cemetery Extension 0.005 0 0 0 0 0.005 Totals 0.408 0.283 0 1.821 0 2.512 Exhibit 4c – Revenue Savings for Projects Recommended for Removal Service Project Budget 2025/26 (£m) Budget 2026/27 (£m) Budget 2027/28 (£m) Budget 2028/29 (£m) Budget 2029/30 (£m) Total Saving (£m) RES 7 New Sports Changing Facility Dumbarton West 0.024 0.023 0.023 0.023 0.022 0.115 RR 1 Legal Case Management System 0.003 0.003 0.003 0.003 0.002 0.014 RR 2 Installation of Solar PV at Clydebank Leisure Centre 0 0.005 0.005 0.005 0.004 0.019 RR 3 Leisure Energy projects 0 0.019 0.018 0.018 0.017 0.072 RR11 Securing sites to make safe 0.002 0.002 0.002 0.002 0.002 0.01 RN 17 Waste Transfer Station 0 0 0 0.127 0.127 0.254 RN 22 Kilmaronock Cemetery Extension 0.001 0.001 0.001 0.001 0.001 0.005 Totals 0.030 0.053 0.052 0.179 0.175 0.489 Exhibit 5a – Projects Recommended for Capital Budget Reduction Service Project Rationale RES 11 Finance Ledger System Project reduced by £0.200m in line with anticipated costs. RN 9 A813 Road Improvement Phase 1 Footway upgrade including improvement to road crossing and repositioning of street lights programmed for February 2026. Future design works for phase 2 have not commenced and a future capital bid will be brought forward with detailed programme and costs once known. RN 12 River Leven Flood Budget reduced to £200k to complete the first phase of works. A future capital bid will be brought forward
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Prevention Scheme with detailed programme and costs for any project identified from the feasibility study for possible future phases. RN 19 East End Park Resurfacing Budget reduced to reflect spend to date of £0.024m plus an additional £0.010m for repair costs to damaged pitch surface. RN 23 Creation of 3 new all weather pitches. Budget reduced by £0.799m due to the delivery of an all weather pitch at Lachie Stewart Memorial Park not being achieved. P&T 4 Development of Workforce Management System Budget reduced by £0.188m to reflect amended breakdown of spend profile provided by service Exhibit 5b – Reduction in Capital for Projects Recommended for Reduction Service Project Budget 2025/26 (£m) Budget 2026/27 (£m) Budget 2027/28 (£m) Budget 2028/29 (£m) Budget 2029/30 (£m) Project Life (£m) RES 11 Finance Ledger System 0 0.200 0 0 0 0.200 RN9 A813 Road Improvement Phase 1 0.121 0 0 0 0 0.121 RN12 River Leven Flood Prevention Scheme 0.420 0 0 0 0 0.420 RN 19 East End Park Resurfacing 0.171 0 0 0 0 0.171 RN 23 Creation of 3 new all weather pitches 0.799 0 0 0 0 0.799 P&T 4 Development of Workforce Management System 0 0.031 0.049 0.049 0.059 0.188 Total 1.511 0.231 0.049 0.049 0.059 1.899 Exhibit 5c – Revenue Implications of Projects Recommended for Reduction Service Project Budget 2025/26 (£m) Budget 2026/27 (£m) Budget 2027/28 (£m) Budget 2028/29 (£m) Budget 2029/30 (£m) Total Saving (£m) RES 11 Finance Ledger System 0 0.017 0.016 0.016 0.016 0.065 RN9 A813 Road Improvement Phase 1 0.008 0.008 0.008 0.008 0 0.032
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RN12 River Leven Flooding Scheme 0.029 0.029 0.028 0.028 0.028 0.142 RN 19 East End Park Resurfacing 0.014 0.014 0.014 0.013 0.013 0.068 RN 23 Creation of 3 new all weather pitches 0.056 0.055 0.054 0.053 0.052 0.270 P&T 4 Development of Workforce Management System 0 0.003 0.007 0.011 0.015 0.036 Total 0.107 0.126 0.127 0.129 0.124 0.613 Exhibit 6a – Recurring Projects Recommended for Reduction Service Project Rationale RR4 Regeneration/Local Economic Development Several allocations have been removed as they were aspirational, not legally committed, or better funded through alternative sources such as the Levelling Up Fund. Key strategic items like Dumbarton High Street feasibility, Balloch Pierhead Masterplan, and long- term staffing commitments remain in the plan to support ongoing regeneration and planning priorities. RN 13 Public non-adopted paths and roads Project reduced by 25%. No current detailed programme of works. Over the last three years the budget has been underspent between £0.200m and £0.400m each year. A potential risk for future increase in insurance claims may occur. HSCP 2 ICT Modernisation HSCP Project reduced by £0.050m in 2025/26 and £0.100m per financial year from 2026/27 onwards. This reflects spend profile provided by the service while leaving a small residual balance to absorb any potential cost increases. The budget line has been underspent year on year. HSCP 3 Community Alarm upgrade Project reduced in future years 2027/28 – 2033/34 to nil in line with programme provided by service. Exhibit 6b – Reduction in Capital for Recurring Projects Recommended for Reduction Project 25/26 (£m) 26/27 (£m) 27/28 (£m) 28/29 (£m) 29/30 (£m) 30/31 (£m) 31/32 (£m) 32/33 (£m) 33/34 (£m) Project Life (£m) RR4 Regeneration/Local Economic Development 0.180 0.570 0.250 0.108 0.025 0.025 0.025 0.025 0.025 1.233 RN13 Public non-adopted paths and roads 0 0.056 0.056 0.056 0.056 0.056 0.056 0.056 0.056 0.448 HSCP 2 ICT Modernisation HSCP 0.050 0.100 0.100 0.100 0.100 0.100 0.100 0.100 0.100 0.850 HSCP 3 Community Alarm upgrade 0 0 0.036 0.040 0.042 0 0 0.042 0.067 0.551 Total 0.230 0.726 0.442 0.304 0.223 0.181 0.181 0.223 0.248 2.758 Exhibit 6c – Revenue Implications of Recurring Projects Recommended for Reduction
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Service Project 25/26 (£m) 26/27 (£m) 27/28 (£m) 28/29 (£m) 29/30 (£m) 30/31 (£m) 31/32 (£m) 32/33 (£m) 33/34 (£m) Total Saving (£m) RR 4 Regeneration/Local Economic Development 0.013 0.053 0.07 0.078 0.079 0.081 0.083 0.085 0.086 0.628 RN 13 Public non-adopted paths and roads 0.000 0.004 0.008 0.012 0.016 0.020 0.024 0.027 0.031 0.142 HSCP 2 ICT Modernisation HSCP 0.004 0.012 0.021 0.029 0.037 0.045 0.054 0.062 0.07 0.334 HSCP 3 Community Alarm upgrade 0 0 0.003 0.006 0.01 0.01 0.01 0.013 0.019 0.071 Total 0.017 0.069 0.174 0.125 0.142 0.156 0.171 0.187 0.206 1.175 Future Additions to the Capital Programme 4.15 Since December 2022, the Council has implemented a robust assessment and risk prioritisation process for all future bids for additions to the Capital Programme. This process is managed by the Strategic Asset Management Group and includes input and recommendations from the Chief Officer: Resources. 4.16 Services submitting a request for a new capital project are required to complete a detailed bid form, providing comprehensive information on financial implications, alignment with the Council’s corporate objectives and Strategic Plan, and any statutory or legal requirements. Consideration is also given to service delivery impact, risk mitigation, and potential financial benefits. While services score their bids against these categories, all submissions are subject to review by the Strategic Asset Management Group to ensure consistency and fairness in the scoring process. 4.17 New capital bids can be considered throughout the year to address emerging Council and service demands. These bids are assessed through the established prioritisation process and, where appropriate, are presented to Council and relevant committees via the regular budgetary control reporting cycle. This approach ensures flexibility to respond to changing needs while maintaining strong governance, transparency, and consistency in decision-making. 5. PEOPLE IMPLICATIONS 5.1 The reduction in the capital programme may have a direct impact on staffing requirements. As fewer projects progress, the demand for project management and delivery resources will decrease. However, at this stage, until service areas review their capital programme and other workstreams, the extent of these implications cannot be definitive. 6. FINANCIAL AND PROCUREMENT IMPLICATIONS 6.1 Sets out the options to reduce the capital budget expenditure and associated revenue impact.
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6.2 There are no procurement recommendations as a result of this report. 7. RISK ANALYSIS 7.1 Reductions in the Capital Programme, particularly in recurring service budgets, may have a detrimental impact on service delivery and could lead to an increase in complaints. In the current financial context, these risks are heightened by several factors: o Asset Deterioration: deferring or cancelling projects may accelerate the decline of ageing infrastructure, resulting in higher repair and maintenance costs and potential service interruptions. o Health and Safety Compliance: reduced investment could compromise compliance with statutory obligations, increasing the risk of incidents and associated liabilities. o Impact on Strategic Objectives: scaling back projects may delay progress on key priorities such as net-zero commitments, digital transformation, and community regeneration. o Operational Pressures: services may face increased operational challenges if essential upgrades to ICT, fleet, or property assets are postponed, affecting efficiency and resilience. o Reputational Risk: service reductions or delays in planned improvements could lead to negative public perception and increased complaints, particularly where expectations have already been set. o Financial Consequences: short-term savings may result in long- term cost escalation due to emergency repairs, higher borrowing costs for future catch-up investment, and potential loss of external funding tied to specific projects. 8. EQUALITIES IMPACT ASSESSMENT (EIA) 8.1 None of the proposed amendments to the capital programme are anticipated to have a differential impact on individuals or groups with protected characteristics under the Equality Act 2010. As such, a formal Equality Impact Assessment (EIA) is not considered necessary. However, the Council will continue to monitor the implementation of these changes to ensure that equality considerations remain fully addressed. 9. CONSULTATION 9.1 The views of all Chief Officers have been requested on this report and feedback incorporated herein. 10. STRATEGIC ASSESSMENT 10.1 In alignment with the West Dunbartonshire Council Strategic Plan 2022–2027, this report demonstrates that reviewing and reprioritising the capital programme supports the delivery of key priorities:
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o Our Communities – Resilient and Thriving: By prioritising essential infrastructure and assets, the review ensures that services remain accessible, safe, and responsive to local needs, promoting wellbeing and resilience across West Dunbartonshire. o Our Economy – Strong and Flourishing: The revised programme focuses on sustainable and financially viable investment, supporting efficient use of resources and enabling projects that contribute to economic growth and regeneration. o Our Council – Inclusive and Adaptable: The review reflects the Council’s commitment to sound financial governance and transparent decision-making, ensuring that capital investment remains adaptable to changing demands and fiscal realities. Through this review, the Council reinforces its commitment to these strategic priorities, ensuring that capital investment decisions deliver long-term value, maintain essential services, and support the achievement of the Strategic Plan objectives. Laurence Slavin Chief Officer – Resources Date: 04 December 2025 Person to Contact: Laurence Slavin, Chief Officer - Resources Email: Laurence.Slavin@west-dunbarton.gov.uk Appendices: None Background Papers: Report by Chief Officer: Resources to Council 21 December 2022: Review of West Dunbartonshire Council’s Capital Programme Report by Chief Officer: Resources to Council 5 March 2025: Capital Strategy 2025/25 to 2033/34 Wards Affected: All