Calderdale Council approves £101m capital programme for projects

Calderdale Council’s Cabinet agreed to approve the proposal – which raised some questions and gave rise to some explanation.

Cabinet member for Regeneration and Resources, Coun Jane Scullion said that total included £11.1 million brought forward from last year.

It covered a whole range of projects from highways to schools and housing, she said.

The figure required some explanation at a time when finances were difficult, said Coun Scullion.

“I can’t emphasise enough because it plays on people’s minds ‘how come the council be doing that and say they are strapped for cash’,” she said.

Coun Scullion (Lab, Luddenden Foot) said two thirds of the programme was funded by grants and most of the rest by prudential borrowing, with projects planned to be self-financing, for example replacing the street lights with a LED system bringing much reduced energy costs.

Some projects were funded by sale of assets, she said.

Money prudentially borrowed is often from the Government’s Public Works Loan Board at special rates and repaid over a long period of time.

Figures provided to councillows show anticipated funding to deliver schemes between 2020-21 and 2022-23 was 67 per cent from grant funding, one per cent from revenue and reserves, 30 per cent from prudential borrowing and three per cent from pooled resources with partners.

Coun Peter Caffrey said every time councillors saw a capital budget there was another few million in it and it seemed to appear more regularly.

“I’m not sure I agree with the term ‘prudential’ and a lot of projects haven’t been prudentially led.

“I am concerned amounts quoted are specific but income streams are not specific about repaying it, how it is going to be done.

“I know interest rates are low but they won’t always be,” he said.

Coun Caffrey (Con, Northowram and Shelf) questioned if the council should be spending at this rate if repayment costs were not covered.

Coun Scullion said she understood the concern and explained councils borrowed from the board, often over a long period of time, say 40 years, and Calderdale nearly bottom of the list among metropolitan councils in terms of the amount of borrowing it had undertaken.

“At any one time loans are being paid off and new ones coming on board.

“Calderdale is one of the lowest borrowings of any metropolitan council.

“Where other councils have borrowed more, we have used our reserves more,” she said.

Coun Steven Leigh (Con, Ryburn), speaking about the Cabinet debate at Audit Committee held the following evening, said he would like to see a more detailed breakdown of individual projects instead of a block figure in order to scrutinise it.