Agenda item

The Cabinet considered a report which brought together the latest proposals for the Five-Year Capital Programme (Council Fund) 2023/24 to 2027/2028 taking into account the consultation exercise undertaken and the revenue implications arising from the capital programme.

The Cabinet Member for Resources, in presenting the report, stated that the new programme would see £265m of investment over the next five years, £73m of which was for improving school buildings, £27m for Regeneration projects to boost economic activity, £86m for City Deal backed projects (which included a new leisure centre for Llanelli) and £59m to improve local economic infrastructure and wider environment.  He advised that the detailed provisional capital programme had been presented to the Corporate Performance and Resources Scrutiny Committee and, following concerns about the lack of provision for flood prevention and the lack of Welsh Government grant funding for decarbonisation measures, the programme had been revised to include further commitments in this area.  

The Cabinet Member for Resources commented that the programme included three ongoing transformational projects, each focused on a different primary town area.   

·       a £19.6m hub (the former Debenhams Store) at the heart of Carmarthen Town Centre which will boost footfall in the town centre as we build back from the pandemic;   

·       £19m investment to complete the Twyi Valley Path between Carmarthen and Llandeilo;   

·       the construction phase of Zone 1 of the Pentre Awel development in Llanelli which would create five distinct buildings linked with a “street” space, comprising an aquatics centre, sports hall, multipurpose sports and fitness rooms and gym, education and training facilities, clinical delivery and research and innovation and business space.  

In addition to these large flagship projects the Council would continue to support its programmes of investments in infrastructure and the authority’s property portfolio in year five of the programme. Support would also continue for Carmarthenshire’s Schools and Sustainable Communities for Learning. It was pointed out that feasibility works had been ongoing in the 2022/23 financial year on several schools and therefore those projects were not listed as part of this new programme. Furthermore the primary schools in Ammanford, which were part of the programme, were not, as yet, listed as they were part of Mutual Investment Model (MIM) bids and would therefore potentially be delivered in conjunction with partners in the private sector which would be funded through revenue in due course. 

The Cabinet Member for Resources added that in addition to the flagship projects outlined, the Authority would seek to continue to support its ongoing rolling programmes of investments in the following infrastructure and the authority’s property portfolio in year five of the programme:

£2.5m for Disability Facilities Grants;

£250k to improve Road Safety;

£250k for highways drainage;

£400k for Bridge Strengthening;

£600k for ongoing Highway Refurbishment;

£400k for Public Lighting;

£500k for Education General Works including adaptations to comply with the Equalities Act;

£2m for the Strategic Regeneration Project Fund;

£3m for Capital Maintenance for investment in our property estate.

Collectively, over the next five years, investment in these rolling programmes would amount to over £48m.

It was considered that the proposed capital programme  optimised the funding opportunities and maximised the funding from potential external sources. A combination of existing and new schemes in line with the corporate vision would develop the local economy, create jobs, and enhance the quality of life for Carmarthenshire’s citizens and visitors whilst safeguarding  resources for future generations. 

The Cabinet Member for Resources stated that County Council funding available for this programme was currently estimated at £168m and included borrowing, both supported and unsupported, reserves and direct revenue funding and Capital Receipts from the sale of surplus assets. Capital grants and contributions of £100m would come from external grant funding bodies. As part of this year’s settlement Welsh Government had provided indicative general capital funding figures up to 2024/25.  This was reflected in the programme.  Funding for years three, four and five of the programme was based on an assumed level of support equivalent to that received in 2024/25 going forward.  It was pointed out that Welsh Government funding for 2023/24 was £55K less than previously expected.  The overall level of assumed funding in the later years of the programme was slightly in excess of the current commitments. This uncommitted funding would allow flexibility to meet future pressures associated with rising costs and other challenges. 

Cabinet was advised that officers would continue to monitor individual schemes and funding availability. Whilst both would need to be closely managed to ensure the schemes were delivered in full the programme was fully funded for the five years.  

In conclusion the Cabinet Member for Resources believed that the Capital Programme, as outlined, sought to maximise opportunities and he therefore recommended its endorsement.

UNANIMOUSLY RESOLVED TO RECOMMEND TO COUNCIL THAT:-

6.1 the five-year Capital Programme and funding as detailed in Appendix A to the report, with 2023/24 being a hard budget and 2024/25 to 2027/28 soft/indicative budgets, be approved;

6.2 the programme be reviewed, as is usual, if anticipated external or county council funding does not materialise;

6.3 the Capital Strategy in Appendix C to the report be approved;

6.4 the Director of Corporate Services, in consultation with the Chief Executive, Leader and Cabinet Member for Resources, be delegated authority to make any amendments to the programme necessary as a consequence of the final settlement from the Welsh Government due on 1st March 2023.