Summary of capital investment
In addition to the money the council spends on day-to-day services as reflected in the revenue budget, the council also invests for the future in its buildings and infrastructure. This is referred to as capital expenditure.
The council expects to spend £133.9 million on capital schemes in 2009/10. This will be funded from government grants and other external funding of £89.3 million with the remainder met from borrowing. The cost of borrowing relating to our capital expenditure is included under capital financing in our service analysis.
A provisional capital programme of works costing approximately £144.0 million has been drawn up for 2010/11 which is expected to attract government grants and other external funding in the region of £86.8 million. The £57.2 million balance of funding will be met from the use of unsupported borrowing. This level of borrowing reflects the impacts of the current economic downturn on the level of the capital receipts from selling assets as developer confidence has disappeared. This includes £42.4 million to be used temporarily to replace the unavailability of capital receipts of which £34.4 million relates to general fund services and £8.1 million relates to housing revenue account activities.
We have assessed very carefully the affordability of this as the cost of the repayment of the amounts borrowed is included in the revenue budget and believe that it is both affordable and necessary if our regeneration plans are to be maintained.
It should be noted that there will be no capital receipts to be used in funding the capital programme for 2010/11. Where they are realised from the sale of surplus assets they will be used to repay unsupported borrowing costs used temporarily to fund the capital programme.
A summary of the type of schemes included in this year's programme and the proposed funding is shown below.
| Sector | Supported borrowing | Unsupported borrowing | Government grants | Other cont'ns | Total |
|---|---|---|---|---|---|
| Housing - private sector | £0m | £5.0m | £22.7m | £0m | £27.7m |
| Housing - Public sector | £0m | £11.0m | £12.5m | £0m | £23.5m |
| Highways | £2.7m | £3.5m | £2.2m | £0m | £8.4m |
| Other regeneration | £0.0m | £6.4m | £23.6m | £0.7m | £30.7m |
| Children's Services | £5.0m | £9.3m | £19.3m | £00m | £33.6m |
| Environment | £0m | £2.0m | £0.1m | £0m | £2.1m |
| Community, Health and Social Care | £0m | £7.4m | £3.3m | £2.4m | £13.1m |
| Property | £0m | £2.9m | £0m | £00m | £2.9m |
| Customer and Support Services | £0m | £2.0m | £0m | £0m | £2.0m |
| Total | £7.7m | £49.5m | £83.7m | £3.1m | £144.0m |
This page was last updated on 15 March 2010
