Item 15 - Housing Revenue Account (HRA) Capital Budgetary Control Report to 30 June 26 (Period 3)
West Dunbartonshire Council · 26 August 2026
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Official WEST DUNBARTONSHIRE COUNCIL Report by the Chief Officer – Resources Council – 26 August 2026 ___________________________________________________________________ Subject: Housing Revenue Account (HRA) Capital Budgetary Control Report to 30 June 26 (Period 3) 1. Purpose 1.1 This report provides an update on the HRA capital programme to 30 June 2026. 2. Recommendations 2.1 Members are asked to: i) note the current position of the 2026/27 HRA capital budgets and the 5- year HRA capital plan. ii) note that project life performance will be monitored against a project life estimate of £336.506m and a project life income estimate of £53.821m, a borrowing requirement of £282.685m. iii) note that in year financial performance will be monitored against a 2026/27 capital expenditure budget of £58.434m and a 2026/27 capital income budget of £13.064m, a one-year borrowing requirement of £45.370m. iv) note that at this early stage all projects are on track regarding achieving their planned completion dates and delivering within their project life estimate. v) Note that there is an anticipated underspend of £2.340m against 2026/27 budgets reducing the forecast one-year borrowing requirement to £43.030m. 3. Background 3.1 The Council approved the HRA Capital Plan for 2026/2027 to 2030/2031 on 4 March 2026. The approved plan estimated £63.285m of capital expenditure and £16.901m of capital income in 2026/27, a one-year borrowing requirement of £46.384m. The project life borrowing requirement was £272.665m. 3.2 Since March, budget adjustments have taken place to reflect up to date information on progress delivering the plan, including the carry forward of over / underspends at the end of financial year 2025/26 and the incorporation of the latest cost and income forecasts. The adjustments result in revised capital budgets as set out in Exhibit 1. The updated borrowing requirement for 26/27 of £45.370m is £2.340m less than advised in March 2026. The project life ITEM 15
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Official borrowing requirement increased to £282.398m because 2025/2026 underspends were brought forward into the revised capital plan. Exhibit 1: Revised HRA Capital Estimates 2026/2027 – 2030/2031 2026/27 March 26 (£m) Project March 26 (£m) 2026/27 BCR03 (£m) Project BCR03 (£m) 2026/27 Change (£m) Project Change (£m Other Capital 5.510 26.060 5.700 27.730 0.190 1.670 Component Replacement 14.600 73.000 14.600 80.083 0.000 7.083 Void Capital 5.400 27.000 5.400 26.514 0.000 -0.486 Structural & Environmental 3.400 18.600 4.521 21.890 1.121 3.290 Support Costs 3.400 17.000 3.400 17.000 0.000 0.000 More Homes 30.975 163.866 24.813 163.289 -6.162 -0.577 Total Expenditure 63.285 325.526 58.434 336.506 -4.851 10.980 Total Income -16.901 -52.861 -13.064 -53.821 3.837 --0.960 Prudential Borrowing 46.384 272.665 45.370 282.685 -1.014 10.020 4. Main Issues 4.1 Progress against the 2026/27 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: • There are fifteen capital projects where expenditure is tracked over the multi-year life of the project and twenty-eight 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. • At this early stage in the year, projected expenditure and projected income are both in line with project life estimate. 4.3 Appendix 2 shows all projects with their 2026/27 budget and their project life estimate alongside the latest projections. The appendix reports: • 2026/27 projected spend of £55.894m, a £2.540m underspend against the 2026/27 expenditure budget. • 2026/27 projected income of £13.151m, a £0.200m under-recovery against the 2026/27 income budget. • 2026/27 prudential borrowing forecast of £43.030m, £2.340m less than budget. 4.4 Commentary on the 2026/27 variances above £50,000 are set out in Exhibit 2 below.
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Official Exhibit 2: Projected Over / Underspends 2026/27 as at BCR03 Ref Project BCR03 Projection (£m) 26/27 Budget (£m) 26/27 Variance (£m) Commentary 1 EESSH compliance works Expenditure 3.500 5.000 (1.500) 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. The underspend has been reprofiled to a future year. 2 Roofs Expenditure 0.900 1.500 (0.600) 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. The underspend has been reprofiled to a future year. 3 Heating Works Expenditure 1.600 2.400 (0.800) Underspend reflects a reduced demand for replacement heating systems. The underspend has been reprofiled to a future year pending a review of demand across this programme. 4 Void Capital Expenditure 5.760 5.400 0.360 Overspend due to the high number of void property repairs being carried out by the in-house team and supporting contractors. The overspend has been reprofiled to a future year 5 Owner Recoveries Income -0.300 -0.500 0.200 Under-recovery of income is directly linked to the projected underspend on the roofing programme. The under-recovery has been reprofiled to a future year 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 projections will change during the year.
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Official 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 the HRA capital plan. 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: 26 August 2026
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Official 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 2026/27 - Council 4 March 2026. Wards Affected All Wards