Purpose

To approve expenditure within the capital building improvement programme 2026-2029

Decision

To:

a)     Approve the drawdown and spend of the capital programme for the 3 years from 2026/27 to 2028/29 to implement and deliver works as set out in appendix A within a total budget of £2,964,575;

b)     Approve the drawdown and spend on the capital programme and implementation of the care facility emergency programme of works as set out in Appendix B within a total budget of £198,750;

c)     Authorise the Service Director- Economy & Growth to take all operational decisions to deliver the above projects within the approved separate budgets of £3,163,325 and

d)     Approve the drawdown and spend of the capital programme and implementation of works at a property from which a children’s short breaks respite service will be delivered as set out in Appendix B within a total budget of £60,000 and authorise the Service Director - Corporate Parenting, to take operational decisions in relation to this capital budget.

Alternative options considered

1.               Not to invest this capital in the above programme of works.  This is not recommended.  A lack of investment in capital work to the Council’s estate assets would ultimately lead to their deterioration which will eventually make the assets no longer fit for their intended purpose and fail to protect their value. In turn this will have an impact on any services located in such properties, to the extent that they may have to be closed and service delivery would be severely impacted.

2.               The absence of capital investment through improvement works to buildings that are leased out by the council would render those properties unlettable because they are either non-compliant or are not fit for occupation which will result in a subsequent loss of revenue to the council and potential breach of statutory and legal obligations.

3.               Not investing capital in Council assets means that the Council will not be able to improve the asset or their components and apply new or updated strategies and policies of the Council such as strategic asset planning and low carbon management.

4.               Defer the capital investment.  This is not recommended.  This would lead to further deterioration of estate assets which in turn is likely to mean that investment costs will increase over time in line with inflation i.e building and labour costs. The required improvement works have been assessed and prioritised based upon select criteria which covers health and safety, operational need/impact and lifecycle/value. Investment is therefore targeted and spent on the assets requiring work rather than other property assets that are considered less eligible.

5.               Lack of investment into care facilities owned by Herefordshire Council and operated by Hoople Limited may lead to implications over the required Care Quality Commission (CQC) Registrations and ability to operate these facilities.

6.               Lack of investment in a Council-owned property, from which a commissioned provider will deliver a registered overnight short breaks service, could impact on securing and maintaining the required Ofsted registration, operating the service effectively, and ensuring the property is fully adapted and accessible for children with complex needs.