Item 11 Housing Revenue Account (HRA) Capital Budgetary Control Report to 31 January 2025 (Period 10)
West Dunbartonshire Council · 26 March 2025
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WEST DUNBARTONSHIRE COUNCIL Report by the Chief Officer – Resources Council – 26 March 2025 ___________________________________________________________________ Subject: Housing Revenue Account (HRA) Capital Budgetary Control Report to 31 January 25 (Period 10) 1. Purpose 1.1 This report provides an update on the HRA capital programme to 31 January 2025. 2. Recommendations 2.1 Committee is asked to: i) Note the current position of the 2024/2025 HRA capital budget and the HRA capital plan. ii) Note that in year financial performance is monitored against a 2024/2025 capital expenditure budget of £73.664m and a 2024/2025 capital income budget of £10.003m, a one-year borrowing requirement of £63.661m. iii) Note that project life performance is monitored against a five-year project life expenditure budget of £319.740m and a project life income budget of £54.576m, a five-year borrowing requirement of £265.164m. iv) Note that there are thirty two projects reporting off track with an anticipated over / under spend against their 2024/2025 budgets, with a forecast net underspend of £4.112m in 2024/2025. 3. Background 3.1 On 6 March 2024 the Council approved the updated Housing Revenue Account Capital Plan for 2024/2025 to 2028/2029. 3.2 Since then, budget adjustments have taken place to: bring forward 2023/24 project under/overspends reflect progress delivering the plan and any need for budget acceleration and budget deceleration from / to future years update expenditure and income budgets for Affordable Housing Supply projects to reflect the 2023/2024 outturn and the most recent cost and income forecasts. 3.3 The revised capital budget is summarised in Exhibit 1. ITEM 11
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Exhibit 1: Revised 2024/2025 – 2028/2029 HRA Capital Budget 2024/25 BCR10 (£m) Project Life BCR10 (£m) Project Life March 24 (£m) Other Capital Expenditure 7.165 27.129 27.180 Major Component Replacement 19.795 92.604 92.604 Void Capital 4.902 19.212 20.712 Structural & Environmental 2.767 14.175 14.175 Support Costs 2.761 14.367 14.367 Affordable Housing Supply Programme 36.274 152.253 149.053 Total Expenditure 73.664 319.740 318.091 Total Income 10.003 54.576 47.029 Prudential Borrowing 63.661 265.164 271.062 4. Main Issues 4.1 Progress against the 2024/25 capital plan is detailed in: Appendix 1 – HRA Capital Summary Appendix 2 – HRA Capital Detail 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 budgets. Appendix 1 highlights there are twenty-eight capital projects where expenditure / income budget is tracked over the multi-year life of the project and twenty-nine projects that are rolling programme projects / contingency / fees (programmes of work where an annual budget is set each year that takes account of demand, cost, and affordability). 4.3 Appendix 2 details all projects and their approved in year and project life budgets as well as forecast expenditure / income. The appendix highlights a 2024/2025 expenditure budget of £73.664m and a forecast spend of £68.717m, an underspend of £4.947m. (6.7% of the 2024/2025 budget) The 2024/2025 capital income budget is £10.003m, with a forecast income of £9.218m. 4.4 2024/2025 expenditure variances greater than £50,000 are summarised in Exhibit 2. Exhibit 2: Project Over / Underspends 2024/2025 Project 2024/25 BCR10 Forecast (£m) 2024/25 BCR10 Budget (£m) 2024/25 Var (£m) Commentary 1 Special Need Adaptations 0.500 0.655 (0.155) Reduced throughput of capital adaptations this year. Inhouse adaptations team is fully up to date with its order book.
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Project 2024/25 BCR10 Forecast (£m) 2024/25 BCR10 Budget (£m) 2024/25 Var (£m) Commentary 2 Capitalised Minor Works 4.100 3.000 1.100 Transfer of Electrical Installation Condition Works spend to minor works budget. Increase in directing of minor works requests to the relevant planned capital programme. 3 Better Homes Programme 0.975 0.705 0.270m Initial Project costs increased due to the need for isolator switches to be fitted, which had been omitted from a previous legacy work programme. The additional project cost has been offset by a successful application to Scottish Power Energy Networks (SPEN) funding which awarded the Council a total of £355,600. 4 Housing CCTV Installation Programme 0.000 0.750 (0.750) Excellent progress made during 24/25, new CCTV control room completed, new cabling in majority of Multi-storey flats complete, with work in progress to install new cameras to network. Slight slippage in project completion date due to unforeseen technical issues. However, excellent work with CCTV and BT has ensured any issues have been quickly resolved. Revised project completion date anticipated to be before end of Q1 25/26. 5 Roofing Works 1.700 2.500 (0.800) Underspend due to changing mix of the capital programme with an increased number of
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Project 2024/25 BCR10 Forecast (£m) 2024/25 BCR10 Budget (£m) 2024/25 Var (£m) Commentary mixed tenure blocks that require owner consent before work can start. This necessary process can delay project start. 6 Statutory Regulatory Compliance Works 0.022 0.294 (0.272) Delay in commencing works by Building Services as awaiting revised technical drawing designs being received. Team have progressed some works 24/25, with remaining works planned for 25/26once technical drawings available. 7 Heating Improvement Works 2.200 1.900 0.300 Demand has been higher than anticipated due to referrals of older boilers needing replaced due to functionality and condition. Budget increased to £2.268m in 2025/26 to manage higher demand. 8 Energy Efficiency / Energy Improvement Works 0.000 0.057 (0.057) Budget for minor energy efficiency works such as missing loft insulation where identified. 9 Kitchen Upgrade 3.500 2.652 0.848 Kitchen renewals progressing well and higher demand than anticipated as a combination of planned works and repairs service referrals identifying additional installations. Overspend will be rephased over future years. 10 Bathroom & Shower Replacement 0.600 0.750 (0.150) Lower tenants take up has led to slightly lower combined numbers in
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Project 2024/25 BCR10 Forecast (£m) 2024/25 BCR10 Budget (£m) 2024/25 Var (£m) Commentary bathroom/shower renewals. 11 Void House Works 5.300 4.902 0.398 Transfer of increased void spend to HRA capital account following a review. Void delivery costs, including overtime on voids and contractor spend, have reduced as void number have reduced. 12 Defective structures 0.919 0.712 0.207 Higher spend due to increased construction costs. 13 Environmental Renewal - Paths & Environment 0.936 1.068 (0.132) Reduced throughput of environmental works this year because operatives have also worked across other HRA service areas. 14 Asbestos Management Works 0.150 0.237 (0.087) This is a demand led programme. Lower demand leading to an underspend. 15 Multi Storey Flat Strategy 0.100 0.750 (0.650) The enhanced multi storey strategy was approved by Housing and Communities Committee in May 2023 and involves positive tenant engagement. The strategy implementation aligns a number of related workstreams, of which survey work was essential, it was anticipated that these surveys would have commenced earlier which has resulted in the in- year underspend as the identified work will now be programmed in 2025/26.
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Project 2024/25 BCR10 Forecast (£m) 2024/25 BCR10 Budget (£m) 2024/25 Var (£m) Commentary 16 Contingency 0.000 0.100 (0.100) Contingency released to offset cost pressures across the HRA capital account. 17 Clydebank East Expenditure 11.235 9.700 1.535 Good progress with development and is ahead of previous projection 18 Pappert Expenditure 7.566 9.653 (2.087) Development now on site and cash flow accurately based on agreed programme of works now reflected in projection. No impact on overall project budget or timescales and development on track. 19 Mount Pleasant 4.311 4.396 (0.085) Revised projection based on development project plan. 20 Willox Park Phase 1 1.463 2.500 (1.037) Revised projection based on development project plan. 21 Bank Street 0.106 0.518 (0.412) Revised projection based on development project plan. 22 Bonhill Gap Sites 0.190 0.514 (0.324) Revised projection based on development project plan. 23 Silverton – Smollett / Dumbuie 0.024 0.429 (0.405) Revised projection based on development project plan. 24 Queen Mary Avenue 0.010 0.120 (0.110) Revised projection based on development project plan. 25 Queens Quay Site C Expenditure 0.000 1.000 (1.000) Underspend reflects delays progressing this project.
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Project 2024/25 BCR10 Forecast (£m) 2024/25 BCR10 Budget (£m) 2024/25 Var (£m) Commentary 26 Dennystoun Forge 0.050 0.250 (0.200) Revised projection based on development project plan. 27 Future New Build & Related Regeneration Projects / Professional Fees 0.500 1.015 (0.515) Ongoing review of the programme allowed non committed funds to be released to offset cost pressures across the HRA capital account. 28 Fees, Staffing & Contingency 0.400 0.500 (0.100) Review of programme identified in year efficiencies. 29 Buyback Grant Income (2.417) (2.858) 0.441 Revised projection based on distribution of Scottish Government funding. 30 Bonhill Gap Sites Income (0.189) 0.000 (0.189) Revised projection based on the application of the Strategic Local Programme. 31 Silverton Income (0.429) 0.000 (0.429) Revised projection based on the application of the Strategic Local Programme. 32 Queens Quay Site C Income 0.000 (1.000) 1.000 Acquisition grant funding because the project is not able to be taken forward at this point as it has been assessed as unviable. 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 budgetary position will change during the year. 5. Option Appraisal 5.1 No option appraisal was required for this report. 6. People Implications
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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 budgets. 8. Risk Analysis 8.1 The main risks are: (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) Because of current market conditions, inflation is high and interest rates continue to be volatile. 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 budgetary 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 budgets 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 March 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 BCR10 Appendix 2- HRA Capital Details BCR10 Background Papers: Housing Revenue Account (HRA) Capital Investment Programme, Revenue Budget, and Rent Levels for 2024/25 - Council 6 March 2024.
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