Audit Wales has published a checklist to help councils and the Welsh Government get the most from capital spending.
Councils invest in their capital plans to enable them to deliver their day-to-day services. As a result, councils’ capital plans cover a wide range of projects including building schools, enhancing libraries, and buying equipment used to provide social care.
In 2023-24, councils spent almost £2 billion on capital projects.
A new Audit Wales report looks at how well councils plan their capital spending. This includes how well-informed their plans are and if they clearly set out their intended outcomes. The report also examined whether councils take account of the current condition of assets and the resources available to deliver them. Audit Wales also looked at how well councillors are kept up to date with the delivery of capital plans and outcomes from capital spending to help make sure councils achieve value for money.
Audit Wales found that whilst councils deliver significant numbers of projects, it is not always clear how capital plans are helping councils to deliver their priorities. This means it is difficult for councils to know if they are achieving value for money. Being clear on the aims of a project, its costs, and its benefits helps to secure value for money, it said.
Audit Wales has also highlighted how councils need to improve their knowledge of the condition of the assets and include this in their capital plan. Without this, there is a risk that councils do not know the cost of maintaining assets for the future and the size of any funding gaps, it said.
Audit Wales is recommending that councils review their capital planning arrangements using its checklist, which sets out key aspects of effective capital planning. Its report also recommends that councils support councillors with training focused on capital planning, make sure that asset condition information is up to date, and regularly assess the effectiveness of capital projects.
Auditor General Adrian Crompton said :
“Capital spending by councils is vital to ensuring services are being delivered, both now and in the future. However, councils face increasingly difficult financial challenges, making it even more important that their capital planning is achieving value for money. I hope my report helps both the Welsh Government and councils reflect how they can improve the effectiveness of their planning.”
