Capital reports and major projects
Expenditure that results in the purchase, construction or improvement of fixed assets is called capital expenditure.
For this type of expenditure, the council is allowed to spread the cost over several years to reflect that the asset will continue to be used beyond the end of the current financial year. In many cases, such as new buildings, the cost of capital items will also be much higher than could be borne in one financial year.
For this reason, we have a separate system for the scrutiny and approval of capital expenditure projects which come together in the capital programme, which also draws together details of how it is proposed to fund individual schemes.
By the very nature of large and sometimes complex projects, it is not always possible to know in advance precisely what they will cost in advance. Therefore, budgets are sometimes put together based on broad estimates, based on the best advice available at the time, which are refined and reported to the cabinet at regular intervals during the project's life.
Our capital expenditure is outlined in our annual budget.