Monday 5th February, 2024
The papers for the Colchester City Council Governance and Audit Committee meeting on February 7th reveals a financial tale that is both surprising and concerning.
The Capital Outturn Report for 2022/23 details an underspend of £61.231m. This is not a saving, however. Most of the funding will come later down the line for the City Council.
General Fund Capital Programme:
In the General Fund Capital Programme for 2022/23, a budget underspend of £61.231m occurred, with actual expenditure at £12.235m compared to an updated budget provision of £73.466m.
The most significant variance was a £26.7m underspend related to planned loan advances for Colchester Amphora Housing Ltd. This was due to a change in delivery strategy and the Council’s risk appetite.
Housing Revenue Account Capital Programme: Delays and Underspends
Moving to the HRA Capital Programme, there was a budget underspend of £32.128m, with actual expenditure at £29.657m compared to an updated budget provision of £61.785m.
The most significant variance here was a £12.798m underspend on the Housebuilding Programme, mainly due to delays in various schemes, with planning issues playing a prominent role.
Specific Projects and Overspends: A Mixed Bag
The report highlights specific projects with both underspends and overspends:
Underspend (£4.303m): Colchester Northern Gateway Heat Network
– Limited capital spending on this project in 2022/23 due to the unavailability of end users.
Overspend (£1.495m): Rowan House Refurbishment
– Total budget was £2.058m, but spending in 2022/23 amounted to £3.553m, primarily due to unforeseen repairs and maintenance.
*Underspend (£1.226m): Improved Youth Provision
– No capital spending in 2022/23 due to procurement delays at Essex County Council. Expected delivery in 2024/25.
Underspend (£1.365m): St Marks Community Centre/Mill Road Rugby Club
– Capital spending limited to £47,000, with the project now paused and removed from the 2024/25 to 2028/29 draft Capital Programme.
Significant Underspending/Slippage in HRA Capital Programme
Three areas of notable underspending/slippage in the HRA Capital Programme include New Build (£12.798m Underspend) and Sheltered Accommodation (£9.038m Underspend).
It will be interesting to see what the balance sheet is like in 12 months time, and how many of these projects have actually been delivered.
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