Further Detail

It is recognised that additional resources are required in key enabling functions to support and deliver an increased capital programme.
Appendix A provides the detailed period 1 (P1) capital update and Appendix B provides a capital budget revision for approval.

Capital

• Overall, P1 spend is in line with year-to-date budget, however the capital plan tracker on page 2 of Appendix A highlights that intended plans have not been delivered as anticipated so far this year but spend has mainly been as a result of carried forward slippage from 2024-25.
• It is crucial that we gain momentum around capital spend, delivering expenditure in line with approved capital plans, whilst creating a pipeline of expenditure to mitigate any potential slippage throughout the year.
• Delivery plans will be closely monitored through the Capital Planning Task Force and Capital Investment Group and will be reported monthly. The reporting requirements are currently being refined and will be fully implemented from P2.
• In order to manage the overall capital position, £5.0m of 2025-26 fleet spend was accelerated and delivered in 2024-25. A budget virement is required to adjust the Fleet original budget from £16.8m to £11.8m, offset with a corresponding reduction in slippage from £15.9m to £10.9m.
• Additional resources are required to support delivery of an increased capital programme. Resource requirements are being reviewed across the key enabling functions and programmes in accordance with the updated capital policy, and costs will be reallocated between revenue and capital as appropriate.