Introduction

 

To supplement the main report this appendix provides the detailed breakdown of the capital programme for 2026/27 and the following four financial years. Only the proposed 2026/27 budget requires approval. A high level summary is provided by programme with a strategy statement and detailed table for each programme provided.

High Level Capital Budget Proposals   

 

 

Proposed 2026/27  budget for approval
£’000

Profiled budget 2026/27
£’000

Total Budget 2026/27
£'000

Provisional Budget 2027/28 £'000

Provisional Budget 2028/29
£'000

Provisional Budget 2029/30 £'000

Provisional Budget 2030/31 £'000

Expenditure

 

 

 

 

 

 

 

New Supply

            33,276

         38,780

    72,056

        77,569

       51,803

          2,796

 0*

Health & Safety

            25,531

          (7,800)

    17,731

        11,644

       10,117

          9,862

       10,059

Major Works

                 750

         15,719

    16,469

        27,450

       18,150

        12,250

       12,495

Planned Works

              9,468

                 -  

      9,468

          9,522

         9,478

          9,655

         9,848

Sustainability

              5,365

                 -  

      5,365

          5,652

         5,942

          6,035

         6,156

Other

              5,250

                 -  

      5,250

          4,950

         4,850

          4,850

         4,947

Total Capital Investment

            79,640

         46,699

  126,339

      136,786

     100,339

        45,448

       43,505

Funding

 

 

 

 

 

 

 

Direct Revenue Funding

 

 

           16,778

        17,114

          17,456

          17,805

       18,161

General Capital Receipts

 

 

                  -  

               -  

                 -  

                 -  

               -  

RTB Receipts

 

 

             8,895

          4,195

              835

                 -  

               -  

Energy Grants/FITs

 

 

                180

             180

              180

              180

            180

Homes England Grant / LAHF

 

 

           15,118

          8,564

            1,588

              794

               -  

Leaseholder Income

 

 

                500

             500

              500

              500

            500

New Supply Borrowing

 

 

           41,930

        60,772

          45,307

              894

               -  

Existing Stock Borrowing

 

 

           42,939

        45,502

          34,474

          25,275

       24,664

Total Funding

 

 

         126,339

      136,826

        100,339

          45,448

       43,505

* subject to approval of new projects

 

 

 

 

 

 

 

 

 

New Supply Delivering additional council homes remains a key Council Plan and Housing Strategy priority and is supported in the HRA capital programme during 2026/27 and beyond. Dedicated staffing resources to continue to deliver on this priority are included in the revenue budget. The council takes a blended approach to delivery ensuring that new supply is provided through new build, acquisitions, including through our successful Home Purchase Policy, refurbishment and small sites programmes. Construction costs are estimated at an early design stage for new build projects (based on benchmark data and other tender returns) and then updated as the projects progress. New Build projects face significant challenges such as rising construction costs, delivering low rent homes and they will need to achieve key milestones e.g. achieving planning permission, breakeven viability to progress to the anticipated programme. The forecast includes the council’s commitment to a further 496 homes over the 5-year period in total; this is in addition to the 933 homes that have been delivered since 2019 up to March 2026. The policies and budgets for the projects listed below have received formal cabinet and previously committee approval. New projects are subject to an individual business case being approved, where possible the current strategy is for the new schemes to break even, they will be presented to cabinet separately and included in future budget reports where applicable. Detailed Capital Budgets breakdown

 

Health & Safety Works The health & safety of our residents and those who visit and work on our homes is our key priority. Our Council Plan and Housing Strategy both prioritise improving housing safety and regulatory compliance. Legislative and regulatory changes impacting social housing landlords following the Grenfell Tower tragedy, require the Housing service to continually review our approach to health & safety compliance and assurance for council homes. Cabinet on 11th December 2025 considered a report on 'Regulator of Social Housing - response to Regulatory Judgement including Procurement of Stock Conditions Contractor'. Cabinet noted postive progress made in improving compliance with the Regulator of Social Housing, Safety & Quality Consumer Standard. This follows the Regulator of Social Housing's (RSH) judgement on 9 August 2024 highlighted failings in safety and quality compliance and routine repairs backlog. It reflects the enhanced consumer regulation processes introduced in April 2024 as part of post-Grenfell reforms. The Capital Investment Programme supports programmes of work that are necessary to meet the regulations requirements. These works are essential for the safety of all our residents and will be required to be included in programmes over the coming years.         

Major Works Improving housing quality is a Council Plan and Housing Strategy priority. Major works meet our landlord obligations through maintaining the structural, general external integrity and fabric of our properties. A major works project will be either a combination of multiple work streams (new roof, windows and external repairs), or a single piece of work such as a new roof covering to a high-rise block of flats which typically has increased costs due to the complexity of the project. Other major works may include essential repairs to concrete, brickwork and other areas. Such works will enhance the thermal comfort and living conditions of our residents through improved thermal efficiency and improved wall insulation to the external fabric. The investment required as a result of the implementation of the Building Safety Act and Fire Safety (England) Regulations continues to be very significant, building on the works requirements arising from the compliance surveys undertaken across our council homes.  

Planned Works Planned works programmes support our Council Plan and Housing Strategy priority of improving housing quality and are formulated for five years. Planned works will typically consist of a single work stream made up of single element works such as replacement of windows or a roof to street properties, low or medium rise blocks of flats. Planned works also include external repairs and decorations, internal decorations to communal areas and replacement of entrance doors. The programmes are developed from stock condition information following our stock surveys. Where possible, external repairs and windows programmes will be combined as a project to make joint use of scaffold for value for money purposes. The service is moving toward development of more proactive planned preventative programmes of works to ensure best use of capital investment to reduce cost pressures of responsive repairs and other reactive works.

 

Sustainability Enabling residents to live in well-insulated, efficiently heated, healthy homes addressing fuel poverty issues remains a key long-term objective of our Council Plan and Housing Strategy which is supported through the capital programme. The five year programme sets out resources of £29.150m; an average investment of £5.830m per annum. This includes investment in making improvements to communal and domestic heating systems as well as identifying opportunities to install energy efficient & low carbon heating systems. The council’s solar PV programme is also being taken forward.

Other Works The capital programme allows for investment in supporting people to live independently in their homes for longer through housing adaptations. The programme also supports environmental and communal area improvement work based on resident priorities. Environmental improvements are projects that are guided by communities for improvements to benefit the community on an estate. There is an identified need for the council to have up to date Housing ICT systems required to support and develop our investment programmes, regulatory compliance, works and contractor management and customer service. The capital programme allows for this continued investment.