Agenda Item No


The Vale of Glamorgan Council


Scrutiny Committee (Social Care and Health): 3rd December 2012


Report of the Director of Social Services


Initial Capital Programme Proposals 2013/14


Purpose of the Report

1.             To provide an update on the progress of the capital programme for 2012/13 and to submit for consultation the initial capital proposals for 2013/14.


It is recommended that:


1.             The position with regard to the 2012/13 Capital Programme be noted.

2.             Scrutiny Committee consider the initial budget proposals and forward its comments to Corporate Resources Scrutiny Committee and Cabinet.

Reasons for the Recommendations

1.             That Members are aware of the position with regards the 2012/13 Capital Programme, relevant to this Scrutiny Committee.

2.             To allow full consultation on the future capital programmes.

Relevant Issues and Options

2.             Appendix A details financial progress on the Capital Programme as at 30th September 2012. 

2013/14 Capital Programme

3.             The Welsh Government announced the provisional 2013/14 General Capital Funding, on 16th October 2012. The 2013/14 capital settlement represents a 10% cut in funding over last year's allocation, though no further cut was indentified for 2014/15.

4.             However, should the Westminster Government commence a further Spending Review in 2014/15, it is likely that further austerity measures could be introduced between 2015/16 and 2017/18 which could bring about further cuts which are significant in nature. As such, a 10% cut each year from 2015/16 to 2017/18 has been assumed. As part of a Budget Review, covering the period 2013/14 to 2017/18, the Council will have to look to mitigate the deteriorating situation in so far as it is able by reappraising all schemes and looking to progress only those which are deemed to be a key corporate priority, whilst also seeking to gain assurance that such schemes are delivered on time and within budget.

5.             In addition to funding from the Welsh Government, the Council will finance part of the capital programme from its own resources, e.g. capital receipts and reserves.  

6.             Appendix B outlines the proposed 2013/14 Social Services Capital Programme. The table below details the General Capital Funding and internal resources required to fund the whole of the Council's proposed programme.

Analysis of Net Funding Required for the Indicative 2013/14 Capital Programme

GENERAL FUND                                                                £’000      £’000

Welsh Government Resources 

Supported Borrowing                                                        3,180

General Capital Grant                                                        2,106


Council Resources

Capital Receipts                                                                 5,120

Reserves/Leasing                                                              3,417


Net Capital Resources                                                                          13,823                       


HOUSING REVENUE ACCOUNT                                         £’000               £’000

Housing Reserves                                   13,402

Housing Capital Receipts                                                392

Supported Borrowing                                                           280


Net Capital Resources                                                                           14,074

Capital Bids 2013/14

7.          Capital bids were invited for return by 28th September and an extremely high number of bids were received. As bids are evaluated by the Corporate Asset Management Group (CAMG) it was necessary to reduce the numbers of bids actually discussed by the Group in order to allow meaningful discussion for each bid. Departments were requested to rank their own bids in order of importance before submission and a maximum of the highest 20 bids from each Department were forwarded to the CAMG for evaluation. Social Services submitted less than 20 bids so all bids were discussed by the group.

8.          The method of prioritisation used by the Corporate Asset Management Group is shown below.



Health and Safety Legislation



Other Legislation / Statutory requirement



Economic Sense



Corporate Plan






Condition / Suitability



Welsh Government objectives



Low Priority


9.          The Budget Working Group has prioritised bids based upon the recommendations of the CAMG. The Social Services bids are shown in Appendix B.

10.        The evaluation of the bids by the CAMG resulted in a high number of priority A and B bids. Such a high level of high priorities awarded does not assist in the allocation of the Council's scarce resources. 

11.        Consequently, bids will be further reviewed by the BWG in terms of their corporate priority and the risk they pose to the Council if they are not pursued. This methodology will follow that outlined in the Initial Revenue Budget Proposals report for the Budget Review, the risk assessment element of which will be undertaken in line with the Council's Corporate Risk Management Strategy.  

12.        A request for all capital bids for future years that may not have been submitted as part of this bidding round has been requested in order to ensure that the full capital commitments of the Authority are known. Any such bids received will be evaluated by the Budget Working Group in time for the final capital programme proposals in February 2013. The BWG will also assess the likely level of future funding and the capital programme as currently drawn up.

Next Steps

13.        The next stage is for the estimates to be submitted to Scrutiny Committee for consultation.  Corporate Resources Scrutiny Committee is the lead Scrutiny Committee and will consider both the Initial Budget Proposals and the comments that other Scrutiny Committees have made.  The responses of Scrutiny Committee must be made no later than the 20th December 2012. It is also proposed to consult with the public, LSB, business sector and town & community councils.

14.        Scrutiny Committee is asked to first consider the indicative capital proposals as shown in Appendix B.  They then may make recommendations for changes.  If they wish to make a change, the reason for this needs to be recorded in order to assist the Cabinet and the Cabinet Budget Working Group draw up the final proposals.

15.        As well as considering the priority awarded to capital bids within its own services, the Corporate Resources Scrutiny Committee will be asked to look at the priority for bids across the whole range of Council services.

16.        Managers will be asked to revisit the schemes included in Appendix B and to confirm final costs and spend profile prior to the final proposals being presented to Cabinet, which will be no later than 28th February 2013.

17.        Cabinet’s final capital programme proposals will be considered by Council at a meeting to be held by 11th March 2013.

Resource Implications (Financial and Employment)

18.        The total net capital expenditure for the whole of the Council's proposed programme over the next 5 years, is over £105M.

19.        If all the proposed schemes are approved, the effect on General Fund useable capital receipts will be as shown in the following table.

General Fund Capital Receipts


Anticipated Balance as at 1st April 2013



Anticipated Requirements – 2013/14


Anticipated Receipts – 2013/14


Balance as at 31st March 2014



Anticipated Requirements – 2014/15


Anticipated Receipts – 2014/15


Balance as at 31st March 2015



Anticipated Requirements – 2015/16


Anticipated Receipts – 2015/16


Balance as at 31st March 2016



Anticipated Requirements – 2016/17


Anticipated Receipts – 2016/17


Balance as at 31st March 2017



Anticipated Requirements – 2017/18


Anticipated Receipts – 2017/18


Balance as at 31st March 2018




20.        A Project Fund exists to finance capital and revenue projects.  The aim of the Fund is to initially finance a project with repayment of such advances (including interest) being credited back to the Fund.  The following table shows the projected position of the fund.

Project Fund Balance


Anticipated Balance as at 1st April 2013



Anticipated Requirements – 2013/14


Anticipated Receipts – 2013/14


Balance as at 31st March 2014



Anticipated Requirements – 2014/15


Anticipated Receipts – 2014/15


Balance as at 31st March 2015



Anticipated Requirements – 2015/16


Anticipated Receipts – 2015/16


Balance as at 31st March 2016



Anticipated Requirements – 2016/17


Anticipated Receipts – 2016/17


Balance as at 31st March 2017



Anticipated Requirements – 2017/18


Anticipated Receipts – 2017/18


Balance as at 31st March 2018








21.        The above forecast balances need to be seen in the context of significant pressures for spending which are not yet included in the capital programme. These include the backlog of school, highways and buildings improvements.

Sustainability and Climate Change Implications

22.        The bids must also be evaluated for Sustainable Development.  The four areas of Sustainable Development to be considered are:

·         Living within environmental limits

·         Ensuring a strong, healthy and just society

·         Achieving a sustainable economy

·         Promoting good governance


23.        Sustainability checklists will be requested from Project Managers for each of the proposed bids included in Appendix B. These will be reviewed by members of the Sustainable Development Working Group, with a view to ensuring that wherever possible the four sustainable targets are addressed. The results will be included incorporated into the Final Capital Proposals report in February 2013. 

Legal Implications (to Include Human Rights Implications)

24.        The Council is required to show that capital expenditure is covered by identified resources

Crime and Disorder Implications

25.        The obligations of the Council with regard to Section 17 need to be fully considered in the budget decision making process.

Equal Opportunities Implications (to include Welsh Language issues)

26.        Additional finance improves the Council’s opportunities for assisting disadvantaged members of society.

Corporate/Service Objectives

27.        Contributes to the corporate priority of Corporate Resources by the provision of sound financial management. 

Policy Framework and Budget

28.        This report follows the procedure laid down in the constitution for the making of the budget.  The 2013/14 budget proposals will require the approval of Council. 

Consultation (including Ward Member Consultation)

29.        The Management Team and all Scrutiny Committees have been consulted on the proposals.

Relevant Scrutiny Committee

30.        Corporate Resources

Background Papers

Bids received from departments

Correspondence received from the Welsh Government

Contact Officer

Carolyn Michael Senior Group Accountant

Officers Consulted

The following Officers have been consulted on the contents of this report:-

Management Team

Responsible Officer:

Phil Evans Director of Social Services