Capital Plan 2025-28 Summary Report
Argyll and Bute Council · 20 February 2025
Back to Budget Pack — 20 February 2025 and its agenda
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ARGYLL AND BUTE COUNCIL COUNCIL FINANCIAL SERVICES 27 FEBRUARY 2025 CAPITAL PLAN 2025-28 SUMMARY REPORT 1. EXECUTIVE SUMMARY 1.1 This report outlines proposals for the roll forward of the current 3 year Capital Plan 2024-27 by 1 year, incorporating updated funding assumptions, new spending proposals, and the re-phasing of total programme spend across the 3 years of the new Capital Plan 2025-28. 1.2 Funding constraints have put significant pressure on the ability to deliver capital investment. In addition, the capital programme continues to see significant price increases, as well as disruptions to the supply chain and longer lead in times, due to the impact of world events (Covid pandemic, UK exit from EU, Russian invasion of Ukraine) on the global economy. These impacts make it extremely challenging to manage the delivery of the capital programme within available resources and target completion timescales. 1.3 The Local Government Finance Settlement Circular 12/2024 provided 2025-26 General Capital Grant of £9.666m, excluding effectively ring-fenced or directed funding of £1.198m. This represents £0.832m more than previous planning assumptions. However, the 2024-25 final General Capital Grant settlement was £0.047m lower than assumed within the approved Capital Plan. There is, therefore, a net increase in capital resources of £2.449m overall for the 3 years 2025-28. 1.4 The ring-fenced or directed funding of £1.198m, included within the General Capital Grant, comprises £0.632m for Campbeltown Flood Scheme, £0.391m for Play Parks and £0.175m for Nature Restoration Fund. There is also a specific grant of £0.383m available for Active Travel (formerly known as Walking Cycling & Safer Streets). 1.5 1.6 The amount of capital resources effectively top-sliced from the General Capital Grant and allocated to Private Sector Housing Grant (PSHG) is provided for at £1.033m per annum over the 3 years 2025-28, similar to previous years’ levels, although the funded GAE level has reduced to £0.707m in 2025-26. In addition, a GAE equivalent amount of £0.156m per annum is directed to flooding projects. The balance of the available 2027-28 General Capital Grant, assumed for planning purposes (£7.645m), has been allocated across Priority Investment Plans on an agreed block allocation formula basis, in line with previous years. The settlement also provides for additional, non-recurring capital grant funding of £40m across Scotland in 2025-26 for Climate Emergency, to be included within the General Capital Grant. Given that project planning across the programme will already take cognisance of climate change, as a key consideration, it has not
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been necessary to augment planned project expenditure in this respect. As such, this funding represents additional available resources for 2025-26. 1.7 1.8 1.9 1.10 1.11 There is a rolling 3 year target for capital receipts from asset sales, forming part of the overall funding framework for the 2025-28 Capital Plan. The level of receipts that may reasonably be achieved over the 3 years 2025-28 totals £1.750m, profiled £0.750m 2025-26 and £0.500m across each of the years 2026-27 and 2027-28. Additional unbudgeted capital receipts of £0.040m from vehicle sales has also been achieved during 2024-25. This represents an overall increase of £0.640m in available funding for capital investment over the 3 years 2025-28. Project specific grant funding and other capital contributions are accounted for within specific projects. Project approved gross expenditure and income are increased by the same amount, with no impact on project net expenditure. Similarly, project gross expenditure may be augmented by the level of earmarked reserve balances used to fund programme net expenditure, with no impact on required borrowing. As at 31 December 2024, there is a forecast overspend of £0.117m on the current 2024-27 Capital Plan. In addition, spending requirements deemed to be essential, either critical to maintain service delivery, or to comply with legislation or regulation (Red RAG status risks), total an estimated £0.376m. After taking account of budget pressures and proposed allocations, the balance of additional capital resources, available for additional capital investment over the 3 years 2025-28 is £3.560m. This may be augmented by additional borrowing for capital purposes, with the revenue consequences, in terms of debt charges, accounted for as part of the annual revenue budget for 2025-26 and future years. There is also an option to redirect resources, allocated but not yet committed, to other priorities, including in respect of the allocation to PSHG at the historic, above GAE level. A range of currently unfunded investment priorities across council services have been identified, including in respect of the Roads Maintenance programme for 2025-26, with an estimated funding shortfall of £9m to maintain current level standards. 1.12 1.13 A number of known risks, specifically related to the delivery of the Capital Plan, are documented within this report. These risks may impact the delivery of the plan within available resources and target timescales. It is recognised that there are opportunities to take a more strategic approach to capital planning and to enhance existing governance arrangements around capital investment activity. This will be further explored during 2025-26.
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ARGYLL AND BUTE COUNCIL COUNCIL FINANCIAL SERVICES 27 FEBRUARY 2025 CAPITAL PLAN 2025-28 SUMMARY REPORT 2. INTRODUCTION 2.1 This report outlines proposals for the roll forward of the current 3 year Capital Plan 2024-27 by 1 year, incorporating updated funding assumptions, new spending proposals, and the re-phasing of total programme spend across the 3 years of the new Capital Plan 2025-28. 3. DETAIL 3.1 Capital Funding Changes 2025-28 3.1.1 3.1.2 3.1.3 3.1.4 The Local Government Finance Circular 10/2024, published on 12 December 2024, provides details of the provisional total capital funding allocations for 2025-26. The provisional total funding allocations form the basis for the annual consultation between the Scottish Government and COSLA, ahead of the Local Government Finance (Scotland) Order 2024 presented to the Scottish Parliament. The Finance Order was laid in Parliament on 4 February with Stages 1-3 between 4 February and 25 February with the Finance Order Debate taking place on 27 February. Funding constraints have put significant pressure on the ability to deliver capital investment. In addition, the capital programme continues to see significant price increases, as well as disruptions to the supply chain and longer lead in times, due to the impact of world events (Covid pandemic, UK exit from EU, Russian invasion of Ukraine) on the global economy. These impacts make it extremely challenging to manage the delivery of the capital programme within available resources and target completion timescales. The 2024-27 Capital Plan, approved in February 2024, included future year General Capital Grant assumptions for 2025-26 and 2026-27 at the actual 2024-25 level of £8.834m. This estimation was based on the Capital Spending Review undertaken by Scottish Government which advised that the capital settlements were likely to stay constant over the next five years (2021-22 to 2025-26). The Local Government Finance Settlement Circular 12/2024 provided 2025-26 General Capital Grant of £9.666m, excluding effectively ring-fenced or directed funding of £1.198m. This represents £0.832m more than previous planning assumptions. However, the 2024-25 final General Capital Grant settlement
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3.1.5 3.1.6 3.1.7 was £0.047m lower than assumed within the approved Capital Plan. There is, therefore, a net increase in capital resources of £2.449m overall for the 3 years 2025-28. The ring-fenced or directed funding of £1.198m, included within the General Capital Grant, comprises £0.632m for Campbeltown Flood Scheme, £0.391m for Play Parks and £0.175m for Nature Restoration Fund. There is also a specific grant of £0.383m available for Active Travel (formerly known as Walking Cycling & Safer Streets). Project expenditure plans, matched by these funding streams, will be built into the capital programme. The amount of capital resources effectively top-sliced from the General Capital Grant and allocated to Private Sector Housing Grant is provided for at £1.033m per annum over the 3 years 2025-28. This amount has remained at the same level since 2016-17, however, the GAE level, included within the 2025-26 General Capital Grant is now £0.707m. Members may wish to review the amount allocated to PSHG and this is explored further within Section 3.5 of this report. In addition, a GAE equivalent amount of £0.156m per annum is directed to flooding projects. The settlement also provides for additional, non-recurring capital grant funding of £40m across Scotland in 2025-26 for Climate Emergency, to be included within the General Capital Grant. Whilst the distribution across individual authorities has yet to be confirmed, based on the expected distribution formula, additional funding of £0.964m has been assumed within the Capital Plan for 2025-26. Given that project planning across the programme will already take cognisance of climate change, as a key consideration, it has not been necessary to augment planned project expenditure in this respect. As such, this funding represents additional available resources for 2025-26. 3.1.8 3.1.9 There is a rolling 3 year target for capital receipts from asset sales, forming part of the overall funding framework for the 2025-28 Capital Plan. This is based on an assessment undertaken by Commercial Services on potential sales opportunities, now extending another year through to 2027-28. There is an estimated overall increase in capital income across the programme of £0.600m in this respect. The level of receipts that may reasonably be achieved over the 3 years 2025-28 totals £1.750m, profiled £0.750m 2025-26 and £0.500m across each of the years 2026-27 and 2027-28. The assets available for sale are listed in Appendix 1. Additional unbudgeted capital receipts of £0.040m from vehicle sales has also been achieved during 2024-25. This represents an overall increase of £0.640m in available funding for capital investment over the 3 years 2025-28. Project specific grant funding and other capital contributions are accounted for within specific projects. Project approved gross expenditure and income are increased by the same amount, with no impact on project net expenditure. Similarly, project gross expenditure may be augmented by the level of earmarked reserve balances used to fund programme net expenditure, with no impact on required borrowing. Details of project specific capital income, totalling £13.302m and reserve balances earmarked to fund capital expenditure, totalling £10.607m over the 3 years 2025-28 are outlined within Appendix 2.
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3.2 3.2.1 3.2.2 New Capital Commitments and Resource Allocations As at 31 December 2024, there is a forecast overspend of £0.117m on the current 2024-27 Capital Plan. In addition, spending requirements deemed to be essential, either critical to maintain service delivery, or to comply with legislation or regulation (Red RAG status risks), total an estimated £0.376m (£0.305m Riverside Leisure Centre and £0.071m ICT). Members are requested to approve the allocation of additional resources totalling £0.493m in respect of these items. In order to support early capital planning, an indicative block allocation from the General Capital Grant for a further year, 2027-28 was provided, allowing the development of Priority Investment Plans across a range of service categories. After allowing for an allocation to Private Sector Housing Grant and flooding projects, a 2027-28 balance of £7.645m, assumed for planning purposes, has been allocated across Priority Investment Plans (PIPs). This is based on an agreed block allocation formula, in line with previous years. PIPs outline spending proposals to meet service priorities and also provide details of currently unfunded service aspirations. Details of the 2027-28 General Capital Grant block allocations are outlined in the table below. Members are requested to approve these resource allocations. Service % Share £000 Education 26% 1,988 Customer Services - IT 9% 688 Customer Services - Facilities 5% 382 Roads & Infrastructure Services 50% 3,823 Social Work (HSCP) 5% 382 LiveArgyll 5% 382 Total 2027/28 GCG Block Allocation 100% 7,645 Private Sector Housing Grant (Top-sliced) 1,033 Flooding – General (Top-sliced) 156 Total 2027/28 GCG (Planning Assumption) 8,834
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3.3 3.3.1 3.3.2 Updated Capital Plan As part of the capital planning process, services have reviewed project costs and spending profiles and re-profiled total resources, comprising existing approvals and new 2027-28 block allocations, across the 3 years of the Capital Plan 2025-28. The table below provides a summary of the updated Capital Plan 2025-28 planned investment or gross expenditure, subject to member approval of new spending commitments and block allocations outlined within Section 3.2 of this report, while a more detailed breakdown is given within Appendix 3. This is prior to the allocation of any additional resources, explored within Section 3.5 of this report. 2025-26 £m 2026-27 £m 2027-28 £m Total £m Executive Directorate (Douglas Hendry): Education 2.946 1.988 1.988 6.922 Facility Services - Shared Offices 3.681 0.667 0.382 4.730 Major Projects/CHORD 10.865 10.018 0.000 20.883 Executive Directorate (Kirsty Flanagan): ICT 1.352 0.820 0.688 2.860 Roads and Infrastructure 48.500 39.110 33.979 121.589 Development and Economic Growth 1.104 0.000 0.000 1.104 Health and Social Care Partnership 2.084 0.000 0.382 2.466 Live Argyll 0.474 0.468 0.382 1.324 Total 71.006 53.071 37.801 161.878 3.3.3 After accounting for project specific capital income of £13.302m, as outlined at paragraph 3.1.9, the net expenditure on the capital programme that requires to be funded totals £148.576m over the 3 years 2025-28. This funding framework comprises General Capital Grant, capital receipts from asset sales and capital funded from current revenue or earmarked reserves, with the balance to be met from borrowing.
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3.3.4 Details of the funding framework for capital net expenditure over the 3 years 2025-28 is set out in the table below. 2025-26 £m 2026-27 £m 2027-28 £m Total £m Net Capital Expenditure 62.704 48.071 37.801 148.576 Funded by: General Capital Grant 11.178 8.633 8.633 28.444 Asset Sales 0.750 0.500 0.500 1.750 Earmarked Reserves/Revenue 5.577 5.030 0.000 10.607 Borrowing 45.199 33.908 28.668 107.775 Total Funding 62.704 48.071 37.801 148.576 3.3.5 3.3.6 3.4 3.4.1 There are a number of projects where the annual debt charges are expected to be fully offset by revenue budget savings, either through increased income or reduced expenditure, over the useful life of the project deliverables, with no impact on Council Tax. This is generally referred to as prudential borrowing and accounts for £100.593m of the overall borrowing requirement in the above table, largely in respect of the Harbour Investment Programme. The estimated gross capital expenditure and borrowing requirement over the 3 years 2025-28, arising from the 2025-28 Capital Plan, are reflected within the Capital and Prudential Indicators 2025-28, set out within the council’s 2025-26 Treasury Management Strategy. Revenue implications of borrowing in respect of future debt repayments are provided for within the council’s revenue budget forecasts for 2025-26 and future years. Unfunded Priorities The priority investment planning process has identified a number of currently unfunded priorities, broadly comprising the following: • An estimated funding shortfall in Roads Maintenance of £9m. This is the estimated additional level of investment that would be required to maintain roads to the current level standard (steady state), based on an estimated cost of £11m at current prices, compared to a planned level of investment from the block allocation of £2m for 2025-26; • An estimated funding shortfall in Footway Maintenance of £950k, on a similar basis to that of Roads Maintenance; and • Indicative cost estimates that require to be refined, and profiled over 2025-26 and future years, in respect of a number of other identified service priorities. These are largely in respect of Asset Sustainability and include investment in Sports Facilities, Fleet, Waste, Airports, Flood Risk Management, and Bridges and Coastal Protection. More detailed information on the Priority Investment Plans (PIPs) is contained within a separate report on the Corporate Asset Management Strategy and Plan.
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3.4.2 3.5 3.5.1 Members may wish to consider additional investment for currently unfunded service priorities. Funding options and considerations in this respect are outlined in the following section. Additional Investment Considerations After taking account of new planned spending commitments and block allocations, the balance of additional capital resources, available for further new capital investment over the 3 years 2025-28 is £3.560m, as detailed in the table below. £000 Decrease to 2024-25 GCG (47) Increase to 2025-26 GCG 832 Increase to 2026-27 and 2027-28 GCG Assumption 1,664 2027-28 GCG Assumption (2024-25 level) 8,678 2027-28 PSHG Allocation (1,033) 2027-28 Block Allocation (PIP Process) (7,645) Climate Emergency Fund (One-off – will go into GCG) 964 Current Capital Plan Forecast Overspend (117) Red Risks (Regulatory, Critical) (376) Additional Asset Sales 640 Net Total Available Resources 3,560 3.5.2 3.5.3 Council requires to consider the allocation of available resources of £3.560m, in light of the unfunded investment priorities set out within paragraph 3.4.1. This available resource reflects the balance remaining from the estimated additional capital income, after providing for planned spending commitments and allocations, over the 3 years 2025-28. There is, therefore, no impact on the revenue budget in this respect. As set out at paragraph 3.1.6 of this report, the level of resources top-sliced from the GCG and allocated to PSHG is currently planned at the historic level of £1.033m. However, it should be noted that the indicative GAE level, funded from within General Capital Grant, has reduced to £0.707m in 2025-26, while the average annual spend in recent years equates to circa £0.820m. A reduction to the average spend level over each of the 3 years would result in additional resources of £0.640m being made available for redirection. There is
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3.5.4 also an option to redirect resources, allocated through the block allocation but not yet committed, to other council priorities. There is also an opportunity to fund additional capital investment through additional borrowing. However, the revenue consequences, in terms of increased debt charges, would require to be accounted for as part of the annual revenue budget for 2025-26 and across future years. For illustrative purposes, every £1m of additional borrowing for capital purposes creates an annual revenue budget pressure of circa. £0.065m, on average. 3.6 3.6.1 3.6.2 3.6.3 3.6.4 Capital Plan Risks The finance circular received on 12 December 2024 provided details of government grant funding for 2025-26. There is, therefore, a degree of certainty in respect of General Capital Grant and available specific capital grant funding for 2025-26. However, there is a risk that future years grant settlements will be below the 2025-26 level, assumed in the Capital Plan for 2026-27 and 2027-28. Also, at the time of writing, the council’s share of an additional £40m Climate Emergency Fund, to be paid as General Capital Grant, has still to be confirmed. The Capital Plan has assumed additional funding of £0.964m in this respect. Any variation in the final allocations from these assumptions will require to be managed within the overall Capital Plan resources. The funding framework for the approved Capital Plan includes capital receipts from asset sales, estimated at £0.750m in 2025-26 and £1.750m over the 3 years 2025-28. This is based on an assessment provided by the Estates Team in January 2025, however, is subject to changing market conditions. The level of receipts that may reasonably be achieved will be kept under review, to reflect changing market conditions and due diligence undertaken on asset condition. Any variation from this assumption will require to be managed within the overall Capital Plan resources. It is generally the case that the capital programme experiences slippage throughout the year and as such, this risk is expected to be manageable. As capital project approvals are based largely on early indicative cost estimates, there is a risk that actual costs will be more than originally planned, particularly in the current economic climate and where there has been unavoidable project delays. The capital programme continues to see significant price increases, as well as disruptions to the supply chain and longer lead in times, due to the impact of world events (Covid pandemic, UK exit from EU, Russian invasion of Ukraine) on the global economy. Additional funding of £11m, made available to manage these impacts to date, has now been fully allocated. There are likely to be other significant cost pressures in respect of projects, where contracts have yet to be entered into, which are not quantifiable, at this stage. It will be challenging to manage these impacts within available resources and target completion timescales. The Capital Plan monitoring report, as at 31 December 2024, outlines a forecast overspend on the 2024-27 Capital Plan of £0.117m. Members are requested to approve additional resources in this respect, as part of the 2025-26 budget process, as outlined in Section 3.2 of this report.
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3.6.5 3.6.6 3.6.7 3.6.8 3.7 3.7.1 The council’s funding bid to the Scottish Government’s Learning Estate Investment Programme (LEIP) for a new school campus on Mull was successful. While this is good news and will provide welcome investment in the school estate, it will not meet the full cost of the project. The funding gap requires to be met by the council and presents a financial pressure. The Scottish Government will fund up to 50% of eligible costs, with the balance of circa. £20m to be funded by the council. No specific provision has been included within the 2025-28 Capital Plan in this respect, at this stage. There is a risk of further severe weather incidents, requiring both revenue and capital expenditure to be incurred. Whilst there may be additional funding available through the Bellwin Scheme, this is limited to eligible revenue expenditure only. There is no provision for potential additional costs in this respect within the 2025-28 Capital Plan. This risk is considered as part of the council’s policy on the level of the general contingency balance held within the unallocated General Fund reserve. Following the weather event in October 2023 a temporary emergency road was constructed at the A816 Bealach Mor, Kintraw, Ardfern. Due to the future stability of the hillside, the plan is for permanent diversion onto a widened alignment of the emergency route. Funding of £1.1m is already provided for within the capital plan however this may not be sufficient. A feasibility options report is being prepared and a preferred option will be presented for approval following which ground investigation and consultations with stakeholders will take place to inform the design and build contract. A design and build contract shall be prepared and tendered and any shortfall in budget will be determined. The monitoring and review of these risks will continue to be undertaken on an ongoing basis, with actions put in place to continue to mitigate or manage these risks, as far as possible. Actions to manage financial risk within available resources may include re-profiling; project redesign, re-engineering or curtailment, and the re-prioritisation of uncommitted resources across the programme. An update on risks will be reported regularly to Policy and Resources Committee, as part of future capital programme monitoring reports. Opportunities for Improvement It is recognised that there are opportunities to take a more strategic approach to capital planning and to enhance existing governance arrangements around capital investment activity. The Executive Leadership Team is committed to undertaking a future review and recommendations will be reported to members during 2025-26 in this respect. Whilst the detailed specification of requirements of the review has still to be developed, at this stage, it is anticipated that the review will include the following: ▪ Enhanced governance arrangements, including greater member involvement in the allocation of capital resources. This would include a review of current Priority Investment Plans and whether they remain fit for purpose in their current format and provide Members with sufficient information for decision making;
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4. ▪ Longer term financial planning, including longer term Capital Plan (5-10 years); ▪ Integrated capital forecasting, treasury strategy and debt charges (revenue budget) modelling; ▪ A review of the capacity within the current debt charges budget for additional investment, reflecting capital planning and treasury borrowing assumptions; and ▪ An updated Capital Strategy, to help ensure that we are investing in our infrastructure, to support council key strategic priorities. CONCLUSIONS 4.1 4.2 4.3 4.4 The 3 year Capital Plan has been rolled forward another year, now covering the period 2025-28. Funding assumptions; planned spending commitments, including block allocations across services; and profiling across 2025-26 and future years have been updated for the Capital Plan period 2025-28. Subject to member approval of planned spending commitments and block allocations, there is a balance of £3.560m additional capital resources available, to be allocated to increase levels of planned investment in service priorities. There are opportunities to augment the level of additional resources available for increased investment in the highest priorities, through review and redirection of planned resource allocations, not yet committed, and from additional borrowing, as set out at paragraphs 3.5.4 and 3.5.4 of the report. There are a number of specific capital programme risks that require to be monitored and reviewed on an ongoing basis, and which will require to be managed within available resources. Opportunities to enhance current capital arrangements will also be explored, with recommendations to be reported to members, following a review to be undertaken during 2025-26. 5. IMPLICATIONS 5.1 Policy – Sets out the approach to capital planning. 5.2 Financial – Outlines the planned capital investment and funding for the capital planning period 2025-28. 5.3 Legal - Statutory and Regulatory requirements in relation to Health and Safety have been provided for within capital spending plans. 5.4 HR - There are risks that the funding available will have an impact on the sustainability of the Property Design Team and the design team within Roads and Amenity Services. 5.5 Fairer Scotland Duty:
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5.5.1 5.5.2 5.5.3 Equalities – Impacts will be considered as appropriate. Socio-Economic Duty – Impacts will be considered as appropriate. Islands Duty – Islands duty is considered as part of the Equality and Socio- Economic Impact Assessments 5.6 Climate Change – The council is committed to addressing climate change, within the available budget resources. 5.7 Risk - There are a number of risks impacting the delivery of the Capital Plan within available resources and target timescales, which require to be monitored on an ongoing basis. 5.8 Customer Service – None. 5.9 The Rights of the Child (UNCRC) - None Kirsty Flanagan Executive Director/Section 95 Officer 13 February 2025 Councillor Ross Moreland - Policy Lead for Finance and Commercial Services APPENDICES: Appendix 1 - Proposed Asset Disposals Appendix 2 - Project Specific Capital Income and Earmarked Reserves Appendix 3 - Proposed Capital Investment 2025-28 For further information please contact: Carolyn Earl, Acting Head of Financial Services carolyn.earl@argyll-bute.gov.uk
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Appendix 1 - Proposed Asset Disposals 2025-28 Property Shop, 3 Montague Street Ardchonnel Primary School Skipness Primary School Hill Street office Achaleven Primary School Minard Primary School Southend Primary School Former Registrar Office, Witchburn Road Witchburn Road site, former Finance Office Ground at 125 Frederick Street Former Lochgilphead Primary School Area of ground adjoining Pier House Fionnphort, Isle of Mull Land at Broom Road, Former Girl Guide Hut, Dunclutha Lane Luing Primary School Kilchrenan Primary School Dunclutha Children's Home Blairvadach site, Shandon, Helensburgh (Phase 2) Note: Estimated sale values are not separately disclosed due to commercial sensitivity.
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Appendix 2 - Project Specific Capital Income and Earmarked Reserves Project Specific Capital Grants and Contributions 2025-26 £m 2026-27 £m 2027-28 £m Total £m HSCP Scottish Government Island Funding - Tigh Na Rhuda 0.050 0.000 0.000 0.050 HSCP - Kintyre Care Home 0.650 0.000 0.000 0.650 HSCP - General Funding 0.260 0.000 0.000 0.260 HSCP Total 0.960 0.000 0.000 0.960 CHORD Rothesay Pavilion - HIE/HES/HLF 2.700 0.000 0.000 2.700 Rothesay Pavilion - Rural Growth Deal 4.000 5.000 0.000 9.000 CHORD Total 6.700 5.000 0.000 11.700 Roads & Infrastructure Services Coastal Change Adaptation 0.142 0.000 0.000 0.142 Roads & Infrastructure Services Total 0.142 0.000 0.000 0.142 Development & Economic Growth Coastal Communities Funding (Crown Estate) 0.500 0.000 0.000 0.500 Development & Economic Growth Total 0.500 0.000 0.000 0.500 Total 8.302 5.000 0.000 13.302 Earmarked Reserve Balances 2025-26 £m 2026-27 £m 2027-28 £m Total £m Cimate Change Programme / NDEEF 0.550 0.000 0.000 0.550 RAAC - John Logie Baird 0.600 0.000 0.000 0.600 Red Risk - ICT 0.120 0.000 0.000 0.120 Rothesay Pavilion 3.371 5.000 0.000 8.371 Crown Estates 0.390 0.000 0.000 0.390 SG Islands Fund 0.157 0.000 0.000 0.157 Inflationary Increases - ICT 0.279 0.000 0.000 0.279 Inflationary Increases - Fleet Road Marking Machine 0.028 0.000 0.000 0.028 Inflationary Increases - Claonaig Landslip 0.000 0.030 0.000 0.030 Inflationary Increases - RAAC - John Logie Baird 0.082 0.000 0.000 0.082 Total 5.577 5.030 0.000 10.607
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Appendix 3 - Capital Investment 2025-28 Service Category Project 2025-26 £000s 2026-27 £000s 2027-28 £000s Total £000s Education Asset Sustainability Block Allocation - Education 0 1,988 1,988 3,976 Digital Inclusion 20-21 0 0 0 0 Free School Meals 434 0 0 434 Preliminary RAAC Investigation 1,006 0 0 1,006 Primary Schools 1,280 0 0 1,280 Secondary Schools 226 0 0 226 Asset Sustainability Total 2,946 1,988 1,988 6,922 Education Total 2,946 1,988 1,988 6,922 Shared Offices Asset Sustainability 5-7 East Clyde Street - Coastal Communities Fund 390 0 0 390 Block Allocation 427 382 382 1,191 Kilmory Castle 1,545 0 0 1,545 Asset Sustainability Total 2,362 382 382 3,126 Strategic Change Clean Energy - NDEEF1 208 0 0 208 Clean Energy - NDEEF2 855 285 0 1,140 Net Zero 256 0 0 256 Strategic Change Total 1,319 285 0 1,604 Shared Offices Total 3,681 667 382 4,730 CHORD Strategic Change CHORD - Oban 79 0 0 79 Rothesay Pavilion 10,000 10,000 0 20,000 Kilmory Business Park Phase 2AA 786 18 0 804 Strategic Change Total 10,865 10,018 0 20,883 CHORD Total 10,865 10,018 0 20,883 ICT Asset Sustainability Block Allocation - ICT 0 820 688 1,508 PC Replacement 669 0 0 669 Server Sustainability 400 0 0 400 Telecomms Network 223 0 0 223 Asset Sustainability Total 1,292 820 688 2,800 Service Development Applications Projects 60 0 0 60 Service Development Total 60 0 0 60 ICT Total 1,352 820 688 2,860 RIS Asset Sustainability Block Allocation -222 3,823 3,823 7,424 Bridge Strengthening 1,498 0 0 1,498 Bute Sea Wall Repairs 359 0 0 359 Claonaig Landslip 42 0 0 42 Coastal Change Adaptation 299 0 0 299 Coastal Protection 500 0 0 500 Environmental Projects 100 0 0 100 EV Quick Chargers 0 0 0 0 Flood Prevention 500 0 156 656 Helensburgh Flood Mitigation 427 0 0 427 Lighting 369 0 0 369 Local Bridge Maintenance Fund 4,777 0 0 4,777 Play Park Renewal 391 0 0 391 Public Convenience Upgrades 109 0 0 109 Roads Reconstruction 2,000 0 0 2,000 Asset Sustainability Total 11,149 3,823 3,979 18,951 Service Development Fleet Management - Prudential Borrowing 500 0 0 500 Weather Incident October 2023 1,100 0 0 1,100 Service Development Total 1,600 0 0 1,600 Strategic Change Campbeltown Flood Scheme 24 387 0 411 Harbour Investment Programme PB 35,406 34,900 30,000 100,306 Street Lighting LED Replacement 321 0 0 321 Strategic Change Total 35,751 35,287 30,000 101,038 RIS Total 48,500 39,110 33,979 121,589 DEG Service Development Helensburgh Public Realm - Arts Strategy Fund 25 0 0 25 Nature Restoration Fund 409 0 0 409 Safe Streets, Walking and Cycling (CWSS) 383 0 0 383 Service Development Total 817 0 0 817 Strategic Change TIF - Halfway House Roundabout 287 0 0 287 Strategic Change Total 287 0 0 287 DEG Total 1,104 0 0 1,104 HSCP Asset Sustainability Block Allocation 0 0 382 382 Capital Property Works 9 0 0 9 Eadar Glinn 25 0 0 25 Kintyre Care Home 673 0 0 673 Struan Lodge Boiler 566 0 0 566 Thomson Home Rothesay 776 0 0 776 Tigh An Rudha HFE 35 0 0 35 Asset Sustainability Total 2,084 0 382 2,466 HSCP Total 2,084 0 382 2,466 Live Argyll Asset Sustainability Aqualibrium 104 0 0 104 Capital Property Works 0 382 382 764 Corran Halls Gaelic Centre 0 86 0 86 Riverside Leisure Centre 305 0 0 305 Rothesay Swimming Pool 65 0 0 65 Asset Sustainability Total 474 468 382 1,324 Live Argyll Total 474 468 382 1,324 Overall Total 71,006 53,071 37,801 161,878