Item 19 - Housing Revenue Account (HRA) Capital Budgetary Control Report to 31 August 2025 (Period 5)
West Dunbartonshire Council · 29 October 2025
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WEST DUNBARTONSHIRE COUNCIL Report by the Chief Officer – Resources Council – 29 October 2025 ___________________________________________________________________ Subject: Housing Revenue Account (HRA) Capital Budgetary Control Report to 31 August 2025 (Period 5) 1. Purpose 1.1 This report provides an update on the HRA capital programme to 31 August 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 August 2025. ii) Note project life performance is monitored against a £345.311m project life expenditure estimate, a £80.379m project life income estimate and a £264.932m 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 £6.481m 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 thirty-two projects are reporting as off track in 2025/26 with an anticipated under spend of £9.812m against their 2025/26 budgets reducing the forecast one-year borrowing requirement to £39.445m. 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 £264.932m. A summary of the revised capital budgets is set out in Exhibit 1. ITEM 19
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Exhibit 1: HRA Capital Estimates 2025/26 – 2029/30 Project Life Budget (£m) 2025/26 Budget (£m) Project Life Forecast BCR05 (£m) 2025/26 Forecast BCR05 (£m) Other Capital Expenditure 26.267 7.433 26.052 6.738 Component Replacement 93.567 20.881 89.226 14.468 Void Capital 19.873 5.258 19.873 5.700 Structural & Environmental 17.320 3.762 16.653 1.875 Support Costs 17.155 3.100 17.155 3.100 More Homes Programme 171.129 15.113 171.129 17.962 Total Expenditure 345.311 55.547 340.088 49.843 Total Income -80.379 -6.290 -81.636 -10.398 Prudential Borrowing 264.932 49.257 258.452 39.445 4. Main Issues 4.1 Progress against the 2025/26 capital plan is detailed in: Appendix 1 – HRA Capital Summary BCR05 Appendix 2 – HRA Capital Detail BCR05 4.2 The HRA capital summary report at Appendix 1 reports that: project life expenditure is forecast to be less than budget by £5.223m over the 5-year period of the capital plan. one project has forecast project life income of £1.258m more than the project budget consequently, prudential borrowing will be £6.481m 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: 2025/2026 forecast spend of £49.843m, a £5.704m underspend against the 2025/2026 budget. 2025/2026 forecast income of £10.398m, a £4.108m over-recovery against the 2025/2026 budget 2025/2026 prudential borrowing will be £39.445m, £9.812m less than the approved plan for 2025/2026. 4.4 Commentary on the 2025/2026 variances are set out in Exhibit 2 below. Exhibit 2: Project Over / Underspends 2025/2026 as at BCR05 Project 25/26 Forecast (£m) 25/26 Budget (£m) 25/26 Variance (£m) Commentary 1 Special Need Adaptations 0.668 0.688 0.020 Small overspend to be re- profiled across future years.
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Project 25/26 Forecast (£m) 25/26 Budget (£m) 25/26 Variance (£m) Commentary 2 Capitalised Minor Works 3.500 3.715 -0.215 Reduced contractors spend. Underspend will reduce borrowing requirement 3 Environmental Sensors 1.500 2.000 -0.500 Underspend due to challenges getting access to properties. Underspend will be re- profiled across future years. 4 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. Underspend to be re-profiled across future years. 5 External Component Renewal - Roofs 1.250 2.500 -1.250 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. Underspend will reduce borrowing requirement. 6 Doors/Windows Component Renewals 3.600 4.985 -1.385 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. 7 External Stores / Garages / Bin Stores 0.000 0.048 -0.048 Works are being funded from the capitalised minor works budget. Underspend will reduce borrowing requirement
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Project 25/26 Forecast (£m) 25/26 Budget (£m) 25/26 Variance (£m) Commentary 8 Secure entry component renewals 0.000 0.100 -0.100 Works are being funded from the capitalised minor works budget. Underspend will reduce borrowing requirement. 9 Statutory / Regulatory Compliance Works 0.150 0.594 -0.444 Health and safety works are now being delivered across two years. Underspend will be re- profiled across future years. 10 Energy Improvements / Energy Efficiency Works 0.000 0.058 -0.058 Works are being funded from the capitalised minor works budget. Underspend will reduce borrowing requirement. 11 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. Underspend will reduce borrowing requirement. 12 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. Underspend will reduce borrowing requirement. 13 Void House Strategy Programme 5.700 5.258 0.442 Contractor voids spend greater than budgeted. Overspend will be re-profiled across future years. 14 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. Building Services resources are assisting in the void house programme of work. Underspend will reduce borrowing requirement.
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Project 25/26 Forecast (£m) 25/26 Budget (£m) 25/26 Variance (£m) Commentary 15 Environmental Renewal - Paths & Environment 1.100 1.000 0.100 Overspend due to mix of work requiring contactors in addition to in-house team. Overspend will be re-profiled across future years. 16 Asbestos Management Works 0.200 0.242 -0.042 Demand lower than anticipated. Underspend will reduce borrowing requirement 17 Multi Storey Flat Strategy 0.400 1.720 -1.320 Revised projection based on timing of programme. Underspend will be re- profiled across future years. 18 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. Underspend will be re- profiled across future years. 19 Demolition Programme 0.206 0.140 0.066 Revised projection based on timing of programme. In year overspend will be re- profiled across future years 20 Clydebank East 0.365 0.250 0.115 Revised projection based on development project plan. In year overspend will be re- profiled across future years. 21 Pappert 0.872 0.730 0.142 Revised projection based on development project plan. In year overspend will be re- profiled across future years. 22 Willox Park Phase1 3.398 2.980 0.418 Revised projection based on development project plan. In year overspend will be re- profiled across future years. 23 Bank Street 0.839 1.500 -0.661 Revised projection based on development project plan. In year underspend will be re-profiled across future years.
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Project 25/26 Forecast (£m) 25/26 Budget (£m) 25/26 Variance (£m) Commentary 24 Bonhill Gap Sites 5.145 1.600 3.545 Revised projection based on development project plan. Overspend will be re-profiled across future years. 25 Silverton 0.050 0.100 -0.050 Revised projection based on development project plan. In year underspend will be re-profiled across future years. 26 Queen Mary Avenue 1.000 0.800 0.200 Revised projection based on development project plan. In year overspend will be re- profiled across future years. 27 Future New Build & Related Regeneration Projects 0.000 0.550 -0.550 Revised projection based on development project plan. In year underspend will be re-profiled across future years. 28 Scottish Govt Buyback Grant -2.378 -0.550 -1.828 Revised projection based on the distribution of Scottish Government acquisition funding 29 Bank Street -0.839 -1.500 0.661 Revised projection based on the application of the Strategic Local Programme 30 Bonhill Gap Sites -3.360 -1.600 -1.760 Revised projection based on the application of the Strategic Local Programme 31 Clydebank Health Centre -0.350 -0.375 0.025 Revised projection based on the application of the Strategic Local Programme 32 Other Grant -1.612 -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.
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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. 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.
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________________ Laurence Slavin Chief Officer – Resources Date: 29 October 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 BCR05 Appendix 2- HRA Capital Details BCR05 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