Issue - meetings
Capital Strategy and Budget 2021/22 to 2025/26
Meeting: 16/02/2022 - Executive (Item 25)
25 Capital Strategy and Budget 2022/23 to 2024/25 
PDF 741 KB
Report of the Chief Executive and Deputy Chief Executive and City Treasurer attached
Additional documents:
- Appendix 1 - Capital Approval Process & Governance, item 25
PDF 408 KB
- Appendix 2 – Amendments to the capital budget, item 25
PDF 216 KB
- Appendix 3 – The Forecast Capital Programme, item 25
PDF 373 KB
- Appendix 4 – Capital Financing Requirement and Forecast External Debt, item 25
PDF 188 KB
Minutes:
The Executive considered a report of the Deputy Chief Executive and City Treasurer, which presented the capital budget proposals before their submission to the Council.
The Capital Strategy had been developed to ensure that the Council could take capital expenditure and investment decisions in line with Council priorities and properly take account of stewardship, value for money, prudence, risk, sustainability and affordability.
The capital programme 2021/22 to 2025/26 comprised the continuation of the existing programme. For continuing schemes, the position was based on that set out in the report on Capital Programme Monitoring 2020/21, also being considered at this meeting.
Details on the projects within the programme were set out in the report and the full list of the proposed projects was appended to the report.
If agreed, then the proposals contained in the report would create a capital programme of £329m in 2021/22, £533.1.8m in 2022/23, £135.1 in 2023/24 and £36.3m in 2024/25, summarised as follows:-
|
Forecast Budgets
|
2021/22 |
2022/23 |
2023/24 |
2024/25 |
Total |
Total 22/23-24/25 |
|
|
£m |
£m |
£m |
£m |
£m |
£m |
|
Manchester City Council Programme |
||||||
|
Highways |
40.9 |
64.7 |
0.6 |
|
106.2 |
65.3 |
|
Neighbourhoods |
35.7 |
62.7 |
15.5 |
0.9 |
114.8 |
79.1 |
|
The Factory and St John’s Public Realm |
42.7 |
46.4 |
|
|
89.1 |
46.4 |
|
Growth |
64.3 |
95.7 |
61.3 |
5.0 |
226.3 |
162.0 |
|
Town Hall Refurbishment |
53.8 |
86.1 |
68.1 |
42.2 |
250.2 |
196.4 |
|
Housing – General Fund |
17.1 |
27.4 |
37.0 |
2.7 |
84.2 |
67.1 |
|
Housing – HRA |
24.7 |
39.4 |
31.9 |
14.6 |
110.6 |
85.9 |
|
Children’s Services (Schools) |
31.1 |
37.1 |
1.0 |
|
69.2 |
38.1 |
|
ICT |
6.4 |
6.8 |
1.0 |
|
14.2 |
7.8 |
|
Corporate Services |
12.3 |
11.0 |
0.6 |
0.5 |
24.4 |
12.1 |
|
Total (exc. Contingent budgets) |
329.0 |
477.3 |
217.0 |
65.9 |
1,089.2 |
760.2 |
|
|
|
|
|
|
|
|
|
Contingent Budgets |
0.0 |
55.8 |
38.1 |
|
93.9 |
93.9 |
|
Total Programme |
329.0 |
533.1 |
255.1 |
65.9 |
1,183.1 |
854.1 |
The proposed funding for the programme in 2022/23 was:-
|
Fund |
Housing Programmes |
Other Programmes |
Total |
|
|
HRA |
Non-HRA |
|||
|
£m |
£m |
£m |
£m |
|
|
Borrowing |
0.0 |
10.7 |
335.3 |
346.0 |
|
Capital Receipts |
2.0 |
3.9 |
16.8 |
22.7 |
|
Contributions |
0.0 |
0.4 |
30.8 |
31.2 |
|
Grant |
0.0 |
10.6 |
72.9 |
83.5 |
|
Revenue Contribution to Capital Outlay |
37.4 |
1.8 |
10.5 |
49.7 |
|
Grand Total |
39.4 |
27.4 |
466.3 |
533.1 |
Based on the current forecasts for expenditure, prudential borrowing of up to £538.9m over the period would be needed to support the Council’s programme in line with the new schemes and previous planning and profile approval. A number of these schemes would be on an invest to save basis and would generate revenue savings.
The proposed funding for the programme across the forecast period was as follows:-
|
|
2021/22 budget |
2022/23 budget |
2023/24 budget |
2024/25 budget |
Total |
|
|
£m |
£m |
£m |
£m |
£m |
|
Grant |
86.0 |
83.5 |
63.5 |
0.0 |
233.0 |
|
External Contribution |
25.3 |
31.2 |
0.2 |
0.0 |
56.7 |
|
Capital Receipts |
16.0 |
22.7 |
13.1 |
2.7 |
54.5 |
|
Revenue Contribution to Capital Outlay |
32.4 |
49.7 |
33.5 |
15.1 |
130.7 |
|
Borrowing |
169.3 |
346.0 |
144.8 |
48.1 |
708.2 |
|
Total |
329.0 |
533.1 |
255.1 |
65.9 |
1,183.1 |
The proposed capital programme described within the report was affordable within the existing revenue budget based on the estimated capital financing costs associated with delivering the programme.
There were risks associated with the delivery of the ... view the full minutes text for item 25