APPENDIX 1
CAPITAL BUDGET 2022/23
Lancashire Combined Fire Authority
Resources Committee
Meeting to be held on 12 July 2023
(Appendices 1 and 2 refer)
Contact for further information: Steven Brown - Director of Corporate Services
Tel: 01772 866804
Executive Summary
This report presents:
· the year end position for the Authority’s capital programme, and how this has been financed; · the impact of slippage from the 2022/23 capital programme into the 2023/24 programme.
Recommendation
The Authority is asked to: -
· note the capital outturn position and the financing of capital expenditure 2022/23; and · approve the revised 2023/24 capital programme and the financing of this. |
The final capital programme for 2022/23 was £3.271m. Total capital expenditure for the year was £1.629m, reflecting (£1.636m) of slippage and an underspend of (£0.006m), as set out in the table below, and in appendix 1.
|
Area of Spend |
22/23 Budget |
Actual Expendi-ture |
Slipp-age
|
(Under) / Overspend |
Explanation |
|
|
£m |
£m |
£m |
£m |
|
|
Operational Vehicles |
0.924 |
|
(0.924) |
|
Operational vehicles has slipped to future years with new appliances planned to go into service over 2023/24 along with a number of other operational vehicles with long lead times, including two Incident Command Units and an Aerial Platform Ladder which are now expected to be in service by December 2023.
|
|
Support Vehicles |
0.431 |
0.416 |
(0.008) |
(0.007) |
In year expenditure reflects the planned purchases of • two People Movers • six small cars, two medium cars • four vans, plus a van conversion • four FDO cars as planned. |
|
Operational Equipment |
0.300 |
0.157 |
(0.143) |
|
In year expenditure relates to light portable pumps, CCTV on 15 operational vehicles and dash cams on 31 vehicles. Slippage relates to RTC cutting equipment. |
|
Buildings |
0.750 |
0.624 |
(0.127) |
0.001 |
Expenditure in the year relates to • Upgrade of dormitory facilities at Hyndburn • Work to the fleet workshop at Training Centre. • Completion of drill tower replacements at Tarleton, Blackpool and Boulton le Sands, which now in use. Slippage relates to retentions. |
|
ICT Systems |
0.866 |
0.432 |
(0.434) |
|
Software expenditure in year includes: • Dynamic Coverage Tool. • Command Support Software. Hardware expenditure in year includes: • Vehicle Mounted Data Solutions Software slippage includes RDS/Alerter software and Learning Management and System Incident ground Radios. |
|
Grand Total |
3.271 |
1.629 |
(1.636) |
(0.006) |
|
The programme has been financed in year from revenue contributions as shown in Appendix 1.
Under the prudential framework the Authority is required to identify various indicators to determine whether the capital programme is affordable, prudent and sustainable.
The revised indicators, after allowing for the various changes to the capital programme, are shown in the following table, alongside the actual outturn figures, and these show that performance has been within approved limits.
|
|
Revised |
Actual |
|
Net financing costs (Income) |
(£0.680m) |
(£0.600m) |
|
Ratio of Financing Costs to Net Revenue Stream (this expresses net financing charges as a % of total net revenue spending) |
(1.08%) |
(0.96%) |
|
|
|
|
|
Capital Expenditure (this is simply a measure of spend) |
3.271 |
1.629 |
|
Capital Financing (how the spending was funded): |
|
|
|
Grants and contributions |
- |
- |
|
Own resources |
3.271 |
1.629 |
|
Debt |
- |
- |
|
Total |
3.271 |
1.629 |
|
Capital Financing Requirement (this measures the authority’s underlying need to borrow to fund its capital programmes) |
nil |
nil |
The original approved capital programme for 2023/24 was £10.116m. This has been updated for £1.636m of slippage outlined earlier in the report that needs to be slipped into 2023/24. This results in the following updated 23/24 programme:
|
|
£m |
|
Approved capital budget 2023/24 |
10.116 |
|
Slippage from 2022/23 |
1.636 |
|
Revised capital budget 2023/24 |
11.752 |
As a result, the final proposed capital programme for 2023/24 is £11.752m, which is funded from revenue contributions, earmarked reserves and capital reserves. The revised programme and its funding are set out in appendix 2.
The following table sets out the revised prudential indicators for 2023/24 - 2025/26 showing that the revised programme is affordable, prudent and sustainable, as follows: -
|
|
2023/24 Estimate |
2024/25 Estimate |
2025/26 Estimate |
|
Net financing costs (Income) |
(£1.210m) |
£0.910m |
£0.560m |
|
Ratio of Financing Costs to Net Revenue Stream. (The figures show that there is revenue income rather than costs.) |
(1.85%) |
(1.28%) |
(0.76%) |
|
|
|
|
|
|
Capital Expenditure |
11.752 |
10.320 |
12.015 |
|
Capital Financing (how the spending will be funded): |
|
|
|
|
Grants and contributions |
- |
- |
- |
|
Own resources |
11.752 |
10.320 |
12.015 |
|
Debt |
- |
- |
- |
|
Total |
11.752 |
10.320 |
12.015 |
|
Capital Financing Requirement |
- |
- |
- |
Note the draft programme shows a need to borrow in 2026/27, although the extent and timing of this will be reviewed as part of future budget setting cycles.
Over the next five years the position in terms of capital reserves, available to fund future capital programmes will be as follows: -
|
|
Capital Reserves |
Capital Receipts |
Capital Grant |
Total
|
|
|
£m |
£m |
£m |
£m |
|
Balance 31/3/23 |
20.3 |
1.7 |
0 |
22.0 |
|
Additions/utilisation in year |
-5.8 |
-1.7 |
0 |
-7.5 |
|
Balance 31/3/24 |
14.5 |
0.0 |
0.0 |
14.5 |
|
Additions/utilisation in year |
-6.3 |
0 |
0 |
-6.3 |
|
Balance 31/3/25 |
8.2 |
0.0 |
0.0 |
8.2 |
|
Additions/utilisation in year |
-7 |
0 |
0 |
-7 |
|
Balance 31/3/26 |
1.2 |
0.0 |
0.0 |
1.2 |
|
Additions/utilisation in year |
-1.2 |
0 |
0 |
-1.2 |
|
Balance 31/3/27 |
0.0 |
0.0 |
0.0 |
0.0 |
|
Additions/utilisation in year |
0 |
0 |
0 |
0 |
|
Balance 31/3/28 |
0.0 |
0.0 |
0.0 |
0.0 |
As can be seen the capital programme over the next five financial years utilises all of the capital reserves and capital receipts.
Financial Implications
As outlined in the report.
Business Risk Implications
The outturn report sets out how the Authority has performed financially in the year, and as such is a key means of stakeholders monitoring the Authority and assessing how it is performing.
Environmental Impact
The environmental impact of decisions relating to the capital programme will be considered as part of the project planning process, and where possible we will look to minimise the environmental impact of this where it is considered practical and cost effective to do so.
Equality and Diversity Implications
The capital programme in respect of replacement/refurbishment of existing property will include some element of adaptations to ensure compliance with the Equality & Disability legislation.
Human Resource Implications
None
Local Government (Access to Information) Act 1985
List of background papers
Paper:
Date:
Contact:
Reason for inclusion in Part 2 if appropriate: N/a
APPENDIX 1
CAPITAL BUDGET 2022/23
APPENDIX 2
CAPITAL BUDGET 2023/24
