Meeting:	Executive
Meeting date:	9 September 2026
Report of:	Director of Finance, Debbie Mitchell
Portfolio of:	Councillor Katie Lomas, Executive Member for Finance, Performance, Major Projects, Human Rights, Equalities and Inclusion

Capital Programme – Monitor 1 2026/27

Subject of Report

1. The purpose of this report is to set out the projected outturn position for 2026/27 including any under/overspends and adjustments, along with requests to re-profile budgets to/from current and future years.

2. The Capital Monitor report is one of a number of reports taken to Executive on a regular basis to provide details of expenditure and how that impacts the financial standing of the council.

Benefits and Challenges

3. The capital programme is key in delivering the Council Plan. Members are able to prioritise capital expenditure to deliver improvements across all service areas notably Schools, Housing, Transport and Regeneration as well as supporting Climate Change ambitions.

4. The programme does involve significant levels of council borrowing which impacts the level of revenue expenditure. The cost of delivering the capital programme is therefore dependent on levels of external funding, inflation levels and interests rates.

Policy Basis for Decision

5. The Capital Budget is set as part of the Council’s budget setting in February 2026. The capital programme is set alongside decisions to deliver a balanced revenue position.

Financial Strategy Implications

6. The Finance and Performance Monitor 1 report elsewhere on this agenda again outlines the council’s financial position. The identification of slippage particularly in relation to Council funding will reduce council borrowing costs and support the annual revenue expenditure.

Recommendation and Reasons

7. Executive is asked to:

a) In relation to the overall programme:

· Recommend to Full Council the adjustments resulting in a reduction in the 2026/27 budget of £5.008k as detailed in the report.

· Note the 2026/27 revised budget of £107.982m as set out in paragraph 9 and Table 2.

· Note the restated capital programme for 2026/27 – 2029/30 as set out in Annex 1.

Reason: To enable the effective management and monitoring of the Council’s capital programme.

b) In relation to the investment at Burnholme:

· Note the award of grant from the Football Foundation of £700k for a new 3G pitch at Burnholme delegating the Director of Finance to sign the grant agreements with Football Foundation and GLL for their contributions

· Agree to adding the scheme to the capital programme with £150k CYC contribution from s106 / leisure sinking fund

· Approval to enter into the framework partner agreements, construction contract and other contract documents required to deliver the contract

· Accept the risk that scheme cost overruns will need to be funded by the council

Reason: To ensure that scheme funding can be accepted and the scheme delivery can progress in line with the Council’s Constitution and Financial Regulations.

Background

8. The 2026/27 capital programme was approved by Council on 12 February 2026 and updated for amendments reported to Executive in the 2025/26 outturn report, which resulted in an approved capital budget for 2026/27 of £112.990m.

9. A decrease of £5.008m is detailed in this monitor resulting in a revised capital programme for 2026/27 of £107.982m. There is an increase of £2.954m due to additional funding being awarded / approved and a re-profiling of budgets to future years totalling £7.962m.

10. Table 1 outlines the variances reported against each Directorate area and a summary of the key exceptions and implications on the capital programme are highlighted in the paragraphs that follow.

Department	Current Approved Budget	Projected Outturn	Adjustment	Reprofile	Total Variance	Paragraph Ref
Department	£m	£m	£m	£m	£m
Children’s services	16.738	9.624	-	(7.114)	(7.114)	16 – 27
Adult Social Care	0.903	0.903	-	-	-	28 – 37
Housing	30.345	34.088	3.492	0.251	3.743	38 – 51
Communities	2.452	2.452	0.000	-	-	52 – 61
Transport & Env	53.139	51.604	(0.314)	(1.221)	(1.535)	62 – 117
City Development	2.942	2.965	0.023	-	0.023	118 –129
Property Services	1.598	1.72	-	0.122	0.122	130
ICT	2.293	2.046	(0.247)	-	(0.247)	131
Corporate Services	2.580	2.580	-	-	-
Total	112.990	107.982	2.954	(7.962)	(5.008)

Table 1 Capital Programme Monitor 1 2026/27

11. As a result of the changes highlighted above the revised 5-year capital programme is summarised in Table 2.

Gross Capital Programme	2026/27	2027/28	2028/29	2029/30	Total
	£m	£m	£m	£m	£m
Children’s services	9.624	4.010	1.845	1.846	17.325
Adult Social Care	0.903	0.752	0.776	0.800	3.231
Housing	34.088	34.442	35.057	24.179	127.766
Communities	2.452	-	-	-	2.452
Transport, Highways & Environment	51.604	68.772	71.662	34.312	226.350
City Development	2.965	37.010	8.640	-	48.615
Property Services	1.720	0.728	0.325	0.275	3.048
ICT	2.046	3.470	3.320	4.627	13.463
Corporate Services	2.580	0.394	0.200	0.369	3.543
Revised Programme	107.982	149.578	121.825	66.408	445.793

Table 2 – Revised 5-year programme

Funding the 2026/27 – 2029/30 Capital Programme

12. The revised 2026/27 to 2029/30 capital programme of

£445.793m is funded from £182.156m of external funding and £263.637m of internal funding. Table 3 shows the projected call on resources going forward.

	2026/27	2027/28	2028/29	2029/30	Total
	£m	£m	£m	£m	£m
Gross Capital Programme	107.982	149.578	121.825	66.328	445.793
Funded by:
External Funding	52.149	52.736	56.052	21.219	176.156
Council Controlled Resources	55.833	96.842	65.773	45.189	263.637
Total Funding	107.982	149.578	121.825	66.408	445.793

Table 3 – 2026/27 to 2029/30 Capital Programme Financing

13. The Council controlled figure is comprised of a number of

resources that the Council has ultimate control over. These include Right to Buy receipts, revenue contributions, supported (government awarded) borrowing, prudential (Council funded) borrowing, reserves (including Venture Fund) and capital receipts.

14. In financing the overall capital programme, the Director of Finance will use the optimum mix of funding sources available to achieve the best financial position for the Council. Therefore, an option for any new capital receipts would be to use these to replace assumed borrowing, thereby reducing the Councils’ borrowing levels and associated revenue costs.

Consultation Analysis

15. The capital programme was developed under the capital budget process and agreed by Council on 27 February 2025. Whilst the capital programme as a whole is not consulted on, the individual scheme proposals and associated capital receipt sales do follow a consultation process with local Councillors and residents in the locality of the individual schemes.

Options Analysis and Evidential Basis

Children and Education Services

16. The total approved budget for the Children’s Services and Education Capital Programme in 2026/27 is £16.925m.

17. At the start of the financial year a comprehensive review was undertaken of all schemes which required funding from corporate prudential borrowing. To reduce the level of borrowing required in 2026/27 it is recommended that the Basic Need reserve and other available reserves would be utilised in place of borrowing. Following the review, a total of £2.507m of expenditure originally planned to be funded from borrowing in 2026/27 will now to be funded from Basic Needs and other reserves. This has significantly reduced the Council’s overall borrowing cost in 2026/27.

18. In 2025/26, York Council received a £1.724m SEND capital grant from the Department for Education and is expected to receive a further £2.312m grant in 2026/27. This funding supports projects that improve provision for children and young people with SEND. These grants form part of a three year capital plan supporting delivery of the local SEND Reform Plan. Schemes are being delivered through the Council’s SEND Capital Panel, in line with the government reform. Details of expenditure to be committed through these funds will be provided at a future update.

19. The £946k specialist Social, Emotional & Mental Health (SEMH) expansion project at Inspire is currently in the procurement phase and is fully funded through the SEND capital grant. The scheme will deliver three additional classrooms and the remodelling of outdoor areas to increase the capacity of in city’s specialist SEMH provision. This investment supports the Council’s strategic aim to expand local specialist places and reduce reliance on out‑of‑city placements.

20. Of the £3.195m 2026/27 allocation for the Expansion and Improvement of Facilities for Pupils with SEND, £577k has been reprofiled into 2027/28. The scheme is also supported through the DfE SEND capital grant.

21. The Basic (School Places) Need capital allocation is provided by central government to enable local authorities to meet their statutory duty to ensure sufficient school places. No school expansions are planned for 2026/27, therefore the £5,537k budget has been reprofiled evenly across the next three financial years.

22. The St Paul’s Nursery ERP Expansion project is expected to complete in summer 2026.

23. The majority of works at St Oswald’s have completed with final elements to be delivered during 2026/27.

24. The £378k Early Years Expansion scheme continues to progress well and is expected to complete during the 2026/27 year.

25. The Danesgate Outdoor Learning Area scheme has now been completed, and it is proposed that the £30k underspend be transferred to the School Maintenance Programme.

26. The 2026/27 School Maintenance Programme is underway with approx. £1,000k already allocated to projects that have passed tender. Many of these works are expected to be completed during summer 2026 and include window replacement at Yearsley Grove Primary School, pipework replacement at Westfield Primary Community School and a kitchen refurbishment at Stockton on Forest Primary School. A remaining maintenance budget of £923k has been allocated to support further works during the year, including window replacement at Clifton Green Primary School and roof works at Huntington School.

27. It is also proposed to re profile £1,000k from the 2026/27 School Maintenance Programme into the existing £400k budget for 2027/28, creating a 2027/28 budget of £1,400k. This will be funded from the DfE Maintenance Grant and S106.

Adults Services

28. The projected outturn position for Adults Social Care capital monitor 1 is in line with budget at £903k.

Disability Support Grant

29. CYC provides equipment to vulnerable individuals which enables them to remain in their own homes and communities. Disabled Facilities Grants (DFGs) are mandatory grants, but the maximum grant offered does not always cover the cost of adaptations. This budget can be used to top up the grant funding for noth major and minor adaptions to help people remain safe and independent in their own homes. It also enables the council to look at relocation packages where it is more reasonable and practicable to adapt another property.

30. In 2025/26, 989 minor adaptations were carried out including the providing of 707 grab rails, 57 half steps, 210 mopstick rails, and other works. Overall, the Healthy and Sustainable Homes Services provide over 3,000 minor adaptations in the year.

31. For 2026/2027 this funding has also been agreed to support the work of the Falls Prevention team with their Slipper Socials campaign, which was started in the last 18 months with initial money provided by Public Health. To date, the Healthy and Sustainable Homes Service has run 13 slipper social events, giving away nearly 900 pair of free slippers to people aged 60 or over to help reduce the likelihood of falls in the home.

Major Items of Disability Equipment

32. The disability equipment budget supplies high cost equipment to customers to help them to remain in their own homes. This can be both social care equipment and equipment which is joint funded by health. The social care equipment comprises items such as ceiling track hoists, stair climbers, ramps, etc. The supply of equipment is an essential component of prevention, enabling people to continue to remain in their own homes rather than moving to residential care. The budget also contributes to successful community reablement and is a key component of hospital discharge packages.

Telecare Equipment

33. Telecare Equipment Scheme supplies people with alarms and response equipment in their homes to deal with their specifically assessed risks. Sensors are installed which are linked to our Community Alarm system and trigger alerts automatically ensuring speedy response from the response service. The equipment provides individuals with 24-hour monitoring of their circumstances, which can help to encourage independence and keep them in their own homes and communities. This improves their wellbeing and reduces the need for care packages.

34. The digital switchover programme to upgrade telephone networks from analogue to digital in time for the national digital switchover has now been revised to the end of January 2027. As of March 2026, Be Independent have 2,724 active domestic connections and there remain approximately 270 analogue devices which still need to be replaced. Be Independent are aiming to complete the device replacement programme by December 2026.

Burnholme EPH Development

35. The capital budget has been spent on works on Burnholme Sports Centre on Mossdale Avenue. The sports centre provides a place for residents to stay fit and active. This includes a gym, a sports hall, outside courts and an artificial turf pitch. The works have included S.36 and S.1032 retrospective applications and remediation works, drainage inspection survey and manhole surveys.

36. The project was £23k underspent in 2025/26, with the underspend being rolled forward to 2026/27 to cover on-going drainage and sewer works on the access road on Mossdale Avenue.

CRIS Portal Replacement

37. The CRIS Portal capital project will replace the existing in-house provider portal (CRIS), which receives weekly care costs. The project start was delayed last year due to limited capacity within the services needed to progress the project, however the capital project is expected to start later in 2026/27.

Housing Services

Disabled Facilities Grants

38. The 2026/27 budget totals £3.1m, comprising £1.82m Disabled Facilities Grant funding, £475k CYC borrowing, and £805k carried forward from 2025/26. The programme funds adaptations that enable residents to live independently, ranging from minor aids to major works such as stairlifts and level-access showers. Although 2025/26 expenditure was below budget due to additional government funding and reduced referrals, demand has increased significantly in 2026/27, and current projections indicate that the full budget will be utilised.

Aids and Adaptations Grants

39. The 2026/27 budget totals £1,389k, and includes additional funds to deal with backlogs to council house adaptations g, £475k CYC borrowing, and £805k carried forward from 2025/26. This budget is used to undertake adaptations to Council properties in order to help council tenants living in the properties to live independently within the property in the future. The budget is financed through monies allocated from the HRA budget. A range of adaptations are undertaken, ranging from minor adaptations such as the installation of handrails, steps and other equipment, to more major adaptations such as stairlifts, through floor lifts, level access showers (wet rooms)

Warm Homes Local Grant (WHLG)

40. Funding has been secured through the DESNZ Warm Homes Local Grant (WHLG) programme for the period 2025–2028. For 2026/27, £856k [PL1] has been allocated, with £475k already committed across 26 properties. Current forecasts indicate full utilisation of the annual budget.

41. Whilst this project has now started to spend, all spend has been on staffing costs involved in setting up the scheme at £25k. The actual budget for this year is £300k, including £45k on admin and ancillary costs (which includes internal staffing), and £255k for capital retrofit works to private sector properties. The admin and ancillary costs are now committed in full and a plan in place to spend the full project budget.

Major Repairs

42. The major repairs budget for 2026/27 is £15,215k and at Monitor 1 no variance is reported. The capital investment team are working up plans for this spend and a full update will be provided at Monitor 2.

Energy Efficiency Retrofit

43. The Warm Homes: Social Housing Fund Wave 3 programme, supported by Government funding through to 2027/28, has experienced delivery challenges arising from recruitment pressures within the Major Repairs team and contractor mobilisation issues associated with the TrustMark platform. A formal change request has been agreed with the Government funding team, enabling the programme to be reprofiled and delivery to accelerate during 2026/27.

Housing Delivery

44. All 34 Passivhaus homes at Duncombe Square reached practical completion in October 2025. To date, 15 homes are occupied, with a further four plots reserved. The project is now approaching the first year of its two-year defect’s liability period. The forecast budget has increased to reflect anticipated costs of approximately £65k to rectify a design defect and £345k for settlement of the contractors claim. Provision has also been made for additional plot cleaning prior to resident occupation and for the ongoing servicing of heating systems within unsold properties. An updated financial position for the scheme will be reported when sales positions are further progressed.

45. Burnholme has been successfully handed over by the contractor. The development comprises 78 Passivhaus homes set within a high-quality public realm, including communal ginnels designed to encourage social interaction and foster a strong sense of community. A few outstanding defects are currently being addressed by the contractor, following which the programme for tenant occupation of the social rent homes and the sale of the shared ownership and open market properties will progress. The project is currently forecast to be marginally over budget, primarily due to additional construction-related costs and the resolution of project disputes.

46. Tarmac was laid in the summer to the Lowfield Green site and the work signed off after significant delays over the past 12 months. The S278 drawings, and procurement documents are being updated with the intention of publishing the tender by the end of July. Following completion of the drawing updates, T&T QS can proceed with the preparation of the Pre-Tender Estimate (PTE).

47. The updated pre-tender estimate for the Willow House enabling works has increased significantly, with the base estimate now standing at £1,403k. Despite the additional £678k OPE grant funding, the scheme is currently forecast to exceed budget by approximately £218k, based on a total enabling works cost of £1,493k, including a 10% contingency. The September 2025 demolition estimate of circa £750k was based on limited survey and specification information; subsequent investigations have identified additional scope and cost requirements. Furthermore, not all demolition contract costs have been finalised, and any variance between estimated and actual costs will impact the current overall scheme forecast of £3.029m. The in year position will be funded by bringing forward the use of the Housing Development Investment reserve.

48. RIBA Stage 2 design work has started for Lowfield Plot A but the prolonged design development programme, which has been necessary to collaborate effectively with key stakeholders, has resulted in additional design fees. Upcoming engagement activities with professionals and people with lived experience will help guide and inform the development process.

49. Bell Farm refurbishment achieved Practical Completion on 31 March 2026, avoiding any additional preliminaries and delay-related costs. The project also delivered a social value initiative, providing improvements to the Bell Farm Community Hall and representing a community investment of approximately £40k. Following completion, all 40 flats at Bell Farm have been successfully let and are now occupied by tenants, demonstrating strong demand and enabling the scheme to achieve its intended housing and community outcomes.

50. Practical completion of the Glen Lodge refurbishment was achieved on 13 August 2025. The project team will commence the 12-month defects review on 7 July 2026, with a full report scheduled for submission to Hobson Porter by 7 August 2026. The building is currently fully occupied, with occupancy at 100%. Outstanding matters include the reinstatement of an assisted bath and the resolution of damp issues within a ground-floor flat, both of which Hobson Porter has committed to addressing. The current budget forecast is £4,005k, comprising a final account payment of £24k and retention of £84k, together with provision for outstanding defect-related works.

51. The Ordnance Lane scheme remains on hold pending the procurement and appointment of a strategic delivery partner. As a result, no active development, design, or construction activities are currently being undertaken on site. In the interim, expenditure has been minimised, with only essential project management and governance activities being undertaken as required.

Communities

Future Libraries Investment Programme

52. The three library projects have been combined and are reported within a single FLIP (Future Libraries Investment Programme). The projects are now complete, requested capital slippage from 2025/26 of £297k is needed for a combination of fees to be paid, retention under the building contracts and other identified capital costs that were needed post construction. These elements will be complete by monitor 3 and the programme closed.

Germany Beck s106

53. A sum of £249k has been granted to the Yorkshire Learning Trust (Fulford school) in 2026 to part fund the delivery of a new 3G pitch facility on the grounds of the school. This was subject to a published officer decision. This facility is provided with a Community Usage Agreement and is accessible and bookable out of school hours by neighbouring clubs and members of the community. This project is currently in the build and delivery phase and will be open in late September 2026.

54. The remaining amounts from the Recreational payment are then £1.2m which are currently subject to public consultation and potential agreements with various landowners. It is envisaged that these amounts will be spent, following approval, during 2027 and 2028. Once agreed, these spends will be subject to either Officer Decisions or an Executive report depending upon value. These monies have been received over a number of years and with staggered payments. The expiry for these remaining funds is March 2031.

Burnholme 3G Pitch

55. The council facility at Burnholme (managed and operated by GLL) includes a Multi Use Games area (MUGA) including 3 football pitches. The MUGA is relatively small, old and in need of improvement. In recognition of this a GLL application for funding to the Football Foundation in Summer 2025, for a new full size 3G pitch at the site. This was supported by the council. The bid was accepted in March 2026 with £700k of support then coming from the Football Foundation (FF) and £250k from GLL toward an overall identified cost of £1.05m to deliver this facility.

56. As the council is the landowner of the site the council will need to be the contracting partner. The scheme has a funding gap of £150k and it is proposed that this is funded from council sport s106 contributions / leisure sinking fund.

57. This is an excellent opportunity to secure funding and deliver new facilities for residents with a £1 in £10 contribution. The York Playing Pitch Strategy identifies this area as lacking in available formal synthetic pitch space and this new facility would also be a supporting addition and increase to the leisure estate revenue model, improvements.

58. The funding grant from the Football Foundation has conditions which require the Council to enter into the following agreements, as all procurements with Football Foundation funding are required to go through their framework and are delivered by the Football Foundation (FF) as ‘turn key’ projects:

· The FF Joining Agreement.

· The FF Framework Fee Undertaking Agreement (FFUA)

· The FF Grant Offer Letter.

· The FF JCT Design & Build Contract

59. The agreement with the Football Foundation requires the applicant to be liable for fees, up to a £35k cap, should the project fail at a stage before construction begins. These fees can be covered by the funding approval if this were ever necessary.

60. As the applicant we would ultimately be responsible for the entire amount of c£1.05m if the funding bodies failed and there were no grant funds to cover the build cost. This is considered a low risk as the funding body is a national agency and funded in part from central Government. GLL have already agreed and secured their contribution through internal capital approvals.

61. Authority is sought to enter into these agreements as well as confirming the funding for the project. The £150k required can be provided through the leisure estate sinking fund but we will endeavour to use S106 contributions for sport as these are identified.

Transport, Environment and Regulation

Transport

Bus Service Improvement Plan (BSIP)

62. The remaining £4,602k BSIP budget available in 2026/27. This will be used for Park and Rides Interchange Upgrades and City Centre Sustainable Corridor – Bus Priority (Rougier Route).

City Centre Sustainable Corridor – Bus Priority (Rougier Route)

63. The project to deliver a new City Centre Sustainable Corridor was approved by the executive member to proceed to public consultation in June 2025 with a current milestone of construction in Autum/Winter 2026 and implementation in early 2027.

64. Consultation concluded on 12 January 2026 and Executive approval to proceed with a 6-month trial, starting in January 2027, was granted in July.

Park and Rides Interchange Upgrades

65. BSIP 1 funding was secured to provide a new ticket office and public waiting area/ amenities of Grimston Bar P&R and various additional improvements and refurbishments of Askham Bar, Rawcliffe Bar, Poppleton Bar and Monks Cross.

66. Overnight parking areas are proposed to be created at Askham Bar and Rawcliffe Bar and there will be improvements to site security and Park and Cycle facilities across the five sites. Designer Outlet Park and Ride is not within scope of these works as it is under a shorter-term lease agreement.

67. Executive approved the funding for the project in October 2025. Ongoing conversations with First Group as current operator of the sites to ensure operational requirements inform the detailed design. RIBA4 stage design is ongoing. A planning submission will be made for Grimston Bar in Autumn 2026[HM2] .

BSIP Bus Stop Upgrades

68. The 2025/26 Bus Grant budget is fully spent and a prioritised list for 2026/27 is in development. A funding bid has been submitted to YNYCA to support the continued rollout of bus stop upgrades throughout 2026/27.

BSIP Real-Time Screens

69. Replacement displays have been ordered for the Askham Bar, Poppleton Bar, Designer Outlet and Monks Cross P&R sites. In 2026/27, funding has been allocated to replace all the remaining life expired displays including those at Rawcliffe Bar and Grimston Bar P&R sites (10 displays). Many existing city centre displays will also be moved from poles to inside new Bauer shelters, which will reduce street clutter and improve visibility. Furthermore – push buttons will be installed at compatible bus stops to allow for easier access to audio real time information announcements.

Small Scale Bus Priority – Strensall Bus Terminus Improvements

70. Additional opportunities for small scale bus priority projects are being assessed and funding allocated.

Accessible Routes

71. Following an audit of 1,041 sites across York, c.80% of the existing barriers (over 830) were identified as not compliant with current national legislation, meaning they are restricting legitimate use, for disabled people, adapted cycle users, pedestrians with and without prams/pushchairs, and cyclists. There is an ongoing programme of removing and adapting the non-compliant barriers to make York’s walking and cycling routes accessible to people using all forms of active travel and mobility aid.

72. This is a rolling scheme, currently funded for 5 years, which started in 2025/26 (removing 16 barriers of various types and location variety) and is ongoing in 2026/27 (64 barriers programmed to come out, 18 already delivered in Q1). Sites have been identified and selected both on a route basis in line with our LCWIP Key Network to open up continuous accessible routes, with high numbers of users, and ones that are centred around communities, to ensure easy and effective local active travel.

73. A study is being undertaken with the University of Westminster to analyse the impact of barrier removal, using camera footage at two control sites (1) where the barriers will remain in place and (2) where the barriers will be removed in line with our policy. Data has been collected from both locations for almost a year, site (2) will shortly have the barriers removed.

Traffic Signal Asset Renewal (TSAR) Programme

74. Design works for the project at Bishopthorpe Road High Street have been completed and permissions granted for works to be completed on site during August 2026. Works will be completed in conjunction with CYC Highways drainage and resurfacing works to reduce impact for the general public.

75. Pre construction survey works for the project at Huntington Road/Hayleys Terrace have identified existing utilities which prevent the installation of the proposed new diagonal pedestrian crossing provision. The issue is being addressed with the utility owner but this has resulted in construction of the project being delayed until the start of 2027/28.

76. Proposals for replacement of the pedestrian crossing of Heworth Green near the junction with Dodsworth Avenue have been progressed with the project proposed for potential delivery during 26/27 if a basic update of the existing layout can be approved.

77. Detailed Design works for the project at Clifton Moorgate/Water Lane have progressed. Issues with currently installed utilities are being investigated with the operator and land ownership issues regarding potential expansion of existing adopted highway are being addressed with CYC legal officers. Construction of the project is currently scheduled for early 2027.

78. Discovery works have commenced for proposed projects at Skeldergate Bridge/Tower Street and Hull Road/Melrosegate. Construction of these schemes is proposed for the 2027/28 financial year.

Riverside Path Improvements

79. A detailed design commission has been produced and a designer selected to progress the Riverside path project, tasks planned for Q2/Q3 involve carrying out surveys to rule out embankment failure and progressing the design to construction. The outcome of these surveys will inform a construction date for the project.

EV Schemes

80. The tender exercise to replace the existing EV back office/supply/install/maintenance contract has obtained the required approval from CYC executive and is scheduled to be released to market through the Oxford DPS framework as soon as external review of the documentation has been completed by OZEV.

81. Detailed design outputs for the Union Terrace Hyper Hub are expected during Q2 2026/27, followed by the award of the build contract under CYC procurement waiver. Construction of the project is programmed to commence before the end of 2026/27.

82. Feasibility design outputs for the Askham Bar Hyper Hub are expected to be completed by Q2 of 2026/27 however outstanding legal issues must be addressed before an executive report will be submitted seeking approval to proceed to delivery of the project. Costings for the establishment of additional energy supply connection requirements at the site have been agreed with the DNO and a refundable commitment has been provided due to the long lead times required for the DNO to design and organise these works. Construction of any scheme would not commence until 2027/28.

83. Proposals for the LEVI project for neighbourhood EV charge points have been considered by the Housing department and largely supported. Feasibility studies of these locations will commence when a new supplier is in contract to support rollout of EV, at which point the council will formalise a delivery plan.

84. EVCAR completion works are reliant on the establishment of the new EV back office/supply/install/maintenance contract. Monk Bar car park has been returned to its original layout and all required refunds for the non-delivery of these works has now been received by CYC.

Safety Schemes

85. We are currently progressing bids with YNYCA to support our on-going[HM3] safety, safe routes to school and safer neighbourhood projects. Design work is on-going with the following projects having external consultation in quarter 1:

· Hamilton Drive Safe Route to School

· Manor Church of England Safe Route to School

· Alness Drive Speed Reduction

· Huntington Road Danger Reduction

· Outgang Lane access improvements.

YNYCA Local Transport Grant

86. We are working closely with YNYCA to formalise the 2026/27 Local Transport Grant and confirm the list of funded projects for development and delivery. Adjustments made to this monitor period reflect current bid values.

Highways

87. An overview of the achievements across the Highways Capital Programme at M1 are as follows:

Resurfaced Roads

88. Carriageway resurfacing schemes have been successfully delivered at Keble Park North, Murton Way, Sandy Lane[HM4] and Heslington Lane.

89. Further, urgent resurfacing works, have been carried out at three separate locations on the A1237 including Askham Bryan Roundabout, A19 Roundabout Approach and Little Hopgrove Roundabout.

90. The Surface Dressing programme is largely complete, including works completed at Priory Wood Way, Malton Road, Whitestone Drive, Kestrel Wood Way and extensive works on Elvington Lane. The final scheme on York Road will be completed shortly in July. On completion, the Surface Dressing programme will have delivered more than 100,000 square meters of treated carriageway.

Footpaths

91. Works have commenced on Beckfield Lane to replace approximately 750 square metres of the existing asphalt footpath surface, between Grayshon Drive and Norman Drive.

Highway Structures Maintenance

92. General Inspections have commenced, with three completed to date. These inspections will include reports, identifying any defects, and the proposed remedial works to these structures. All information will be updated on the Structures Asset Management System (AMX).

93. Further reactive inspections have also been carried out on structural assets at Sandy Lane and the Lock House Footbridge, which were identified as being in need or urgent attention. In addition to this, two Principal Inspections have been booked in with Network Rail at Poppleton Railway and Red Lion Railway.

Street lighting columns

94. The lighting team are looking to finalise the concrete lighting column replacements within the financial year, including the improvement scheme on A19 North Shipton Road. This will complete several programs, of concrete column replacements, which have been carried out over several years.

95. We are further focusing on replacing the age-expired, steel lighting columns, which range from between eight and ten metres in height. This will take place in maintenance areas three and five, which include various locations within Huntington and Heworth.

City Walls Maintenance

96. Conservation work to the walkway between Monk Bar and the Northeastern Gate, Porta Decumana, has been carried out, including further works between Harlots Tower and New Tower. In addition to this, the boundary walls around Lower Priory Street and Vicotria Bar have undergone significant conservation work.

97. Initial condition assessment and feasibility studies have been undertaken at Monk Bar, where roof leaks and some evident stone spalling, present a serious conservation concern.

98. New lighting and interpretation boards were installed in Bootham Bar, which led to a 33% increase in the donations, during May, and this is expected to continue throughout June also.

Drainage

Pre-Carriageway Drainage Schemes

99. The team have carried out significant repairs to the pipework and five gullies on Heslington Lane, caused by root ingress and damage from utilities. New gullies and kerbs have been installed on Sandy Lane, to proceed the vital carriageway resurfacing works. Significant works have been required at Beckfield Lane, including the installation of new gullies and kerb lines, to direct the flow of any surface water drainage.

Proactive Drainage Investigation / Repair Programme

100. Repairs to the existing drainage gullies have been carried out in Strensall, which will reduce the risk of any flooding from surface water. Further drainage repair schemes have been carried out on Wiggington Road, Church Street Dunnington, Village Green Haxby and Carr Lane.

Sink Holes

101. The team were required to carry out the initial response and investigation work, when a sinkhole opened on Micklegate, including extensive excavation work, before Yorkshire Water took over the site, and carried out repairs, to their combined drainage system.

Castle Mills Lock

102. An essential scheme to replace the existing timber lock gates at Castle Mills is ongoing, with the installation of the new downstream gates now complete. The new upstream gates should be complete by the end of June, followed by the commissioning of both sets of new gates, plus all equipment and sluices, and finally demobilisation from the site in July.

Parks Investment Fund

103. The Park Investment Fund project has progressed well. Improvements have already been made to increase accessibility at Chesney Fields, Bell Farm and Cornlands Road play areas as well as several areas of work taking place in Hull Road Park. These have included new paths and safety surfacing and removing some fencing and gates. Crombie Avenue play area will benefit from a complete refurbishment and consultation has taken, or is currently taking, place to engage with school children and the wider community about improvements for major refurbishments to Ashton Park, Cemetery Road, Chesney Fields and Hull Road Park play areas. Results of this engagement will be merged with information received through a city-wide Parks Accessibility and Inclusion survey. The survey asks disabled children and their parents or carers their views on how we can improve parks to make them available to everyone. Designs to reflect the consultation results will be sought from suppliers and children and communities will be able to vote for their favourite design in the autumn.

104. Meanwhile improvements to our basketball courts, other smaller play area schemes and accessibility improvements are being worked on and developed with progress due over the coming months.

Flood (Ousewem)

105. Ousewem, our strategic, catchment scale Natural Flood Management (NFM) project, has completed 90% of the hydraulic and water quality modelling to help inform the most beneficial locations for NFM across the 3500km2 SUNO catchment. This information will feed into development of the Medium-Term Plan (MTP) to provide a prioritised list of areas suitable for investment in NFM.

106. In tandem with this, work has commenced on the Ousewem Financial Strategy which will outline investment opportunities for future NFM delivery in North Yorkshire and York. 7 projects in Hawes, Hunton and Bishop Monkton have completed their main works and will be finalised in 2027. 7 projects in Hawes and Masham will be delivered from August 2026.

107. Following our successful Local Levy Bid we are working to manage recruitment of the Farm Delivery Officer and Project Manager for 2027 to 2029 to ensure the legacy of Ousewem. We are working to understand partner forums across the NFM landscape to best share our innovation and look to embed NFM delivery within the flood risk management landscape in North Yorkshire.

Major Projects

York Outer Ring Road (YORR)

108. In 2025/26, expenditure on the York Outer Ring Road Project totalled £306k. This was utilised to re-procure contracts with our designers and land agents to work up the detailed phasing strategy required as a condition of our planning permission and reflecting the funding envelope available for construction, as per the July 2025 Executive decision and subsequent West Yorkshire Combined Authority approval given to divert funds to support York Station Gateway.

109. As suggested in the November 2025 Executive paper on Castle Gateway, a transfer of source funding has been effected by WYCA, transferring £3.5m of WYCA Transport Fund (TF) from Castle Gateway to YORR, and a matching transfer of CYC internal capital funding of £3.5m from YORR to Castle Gateway. This will allow complete use of the West Yorkshire Transport Fund.

110. The funding in place for 2026/27 (£2,122k) is being utilised to carry out discharge or pre-commencement planning conditions, undertake land negotiations and prepare the full business case for the project. In addition to this, advanced works are planned for Q4. All remaining consultancy support contracts are expected to be in place for the end of Q2.

York Station Gateway

111. During the first quarter of 2026/27 works have continued on the Package 2 Highways Contract (P2) including the below:

a) 4-week closure period to complete the Highways works some works remain outstanding due to the size of the challenge, with some quality issues / remedial works required.

b) We have completed the new crossing and traffic islands in front of the RI building along Queen Street.

c) Super Crossing Traffic lights commissioned and in partial use

d) Cycle Lane on City Wall side 95% complete

e) Tea Room Square Works and works outside Milner Hotel completed

f) Railings behind the Bus stops on station side (part of P2/3 Interface works) installation commenced

g) Hardicrete to bus laybys

h) Works within the existing retail units in the station have been reinstated following substation ducting and cabling

i) The infra structure elements of the new sub station are now practically complete. However, work continues and we forecast an end date of late Summer 2026. This creates a delay against the contractor’s current programme.

112. There have been some changes to scope to the reordering of works between P2 and Package 3 Station Works (P3). Due to the delay of the existing substation demolition and the later start of the P3 station works there will be an extended period of incomplete works on the station frontage behind the bus shelters. This period may be up to 2 years and therefore the works within this zone are not considered temporary under the Highways provisions and need to be of a sufficient finish and quality to endure safely for this period.

113. This will require a P2/P3 interim works package including a new fencing line to avoid the need to hire fencing from the contractor. Follow on works to demolish the substation, make good and introduce new paving to the area, provision of a new cycle way on a temporary alignment, provision of an additional crossing on a temporary alignment. This work will then be removed once the P3 demolition of parcel square has taken place and the scheme for taxi drop off, pick up, cycle way and pedestrian crossings can be delivered in the final alignment.

114. We continue to monitor additional time and works through our professional team.

Haxby Station

115. The project is now in the process of being resumed following the Government announcement in July 2025 which confirmed that this project was to be funded to full delivery within the DfT’s Rail Network Enhancements Pipeline (RNEP). Delivery of the new station to be led by Network Rail, supported by City of York Council and York & North Yorkshire Combined Authority, as principal stakeholders.

116. The Council remains committed to its delivery and is the current freehold owner of the site of the new station following land acquisition a number of years ago. More specifically, the Council is responsible for providing the associated highways works and measures to enhance active travel within the area, which CYC officers are currently looking into design options for. The programme for delivery of the full project has subsequently been prolonged with the estimated date for completion of the new station and it’s opening now slipped to the 2028/29 financial year.

117. Network Rail have a planning application still pending, determination having been delayed due to the previous funding uncertainty and statutory requirements to undertake further ecological surveys/investigations for protected species on-site (these having been concluded during 2025). Determination of this application is now expected early winter 2026. The council is now working to produce detailed designs of the highways works which it has responsibility for, ready for anticipated delivery in 2027.

City Development

Castle Gateway

118. In November 2025, Executive considered the business case for Castle and Eye, and agreed the progression of the scheme to procurement. This followed submission of updated scheme designs for planning in July 2025, with the scheme was granted planning approval by committee in December 2025. Work on preparing tender documentation is underway, and in support of this, additional design work has been undertaken on discrete works. Works will be tendered shortly and delivery is anticipated to commence late in 2026/27. £200k of investment into Coppergate Carpark was approved in the November Executive.

119. Funding bids have been submitted to YNYCA, in accordance with Executive approvals, for the final element of project funding, and outcomes are expected imminently to be reflected in future capital reporting. Additional funding of £250k has been secured from the Mayoral Combined Authority Vibrant Highstreets fund to deliver additional digital and accessible interpretation works as part of the project.

120. Grant funding of £1.1m has been reconfirmed from WYCA to fund the transport elements of the Castle and Eye of York scheme. The governance of this re-confirmation is being agreed to allow us to draw the allocated funding down.

121. A recent grant application to YNER for 2026/27 Local Transport Plan significant schemes fund includes £2m for Castle and Eye of York. If awarded this grant would cover off the ‘budget to be identified’ noted in the November 2025 Executive paper on Castle and Eye of York. We have yet to have formal approval of this bid which will be subject to further assurance with the Mayoral Combined Authority, early indications however are that it will be supported

York Central

122. The project funding position for York Central has been reprofiled and a change request has been submitted from the developer teams to align the drawdown profile against the revised project expenditure profile. This Change Request has been approved as an officer decision in line with the governance of the funding agreement, as agreed at Exec (SDT has asked SK for date of exec meeting).

123. Delivery of York Central Highway Infrastructure - The spine road has now been completed, and Part 1 certification has been issued by the Authority. This milestone has enabled progress on the stopping up of Leeman Road. The ECML bridge lift is also complete, with works now underway to deliver the remaining infrastructure required to establish a direct connection between the site and Water End. The Council and the developer continue to work collaboratively to develop a roadmap towards achieving Part 2 certification.

124. The Reserved Matters Application (RMA) for York Central has been submitted, and we are working closely with the applicant towards a planning decision in the autumn. In addition, an application for the Wilton Rise Footbridge has been approved.

Carbon Reduction Schemes

125. The Climate Change programme forecast capital spend for 2026/27 is £450k. This has been profiled on improvement works across the corporate estate, including rooftop solar PV and heating improvements.

126. A decision is still pending regarding the potential land purchase for additional car parking at the York Community Woodland. The Board have postponed a decision until 2027/28 once the full impact of car parking charging is better understood.

127. Opportunities to maximise budget by match-funding external grants will continue to be explored.

128. Ongoing maintenance and watering of the York Green Streets trees will continue for a further 2 years, funded by the grant from the White Rose Forest

Vibrant and Sustainable Highstreets Projects

129. As well as the funding for Castle & Eye of York secured from YNYCA, funding from the Vibrant and Sustainable Highstreets grant has also been allocated for the project at Front Street, Acomb (£250k) and a contribution made to the Walmgate Improvement Scheme (£217.3k).

Property

130. Property has a capital budget of £2,223k for 2026/27 including £385k requested slippage from 2025/26.

· Data cooling installation works have been completed at West Offices along with structural repairs at a property at Castlegate.

· Remedial works are due to commence on the salt barn at the Eco Depot later this year, along with heating system works at the Eco Centre.

· Remedial works to West Offices roof are currently being considered and planned to be used from existing budget allocation.

· Asbestos survey works continue and it is requested to slip £100K into next year pending the outcome of such.

HR and Support Services – IT

131. The ICT capital programme has a budget of £2,293k for 2026/27 and the following works are in train:

· Major technology refresh of the network hardware has commenced beginning with a replacement of the security firewall. This will be continuing throughout the year with the replacement of the wi-fi and voice recording hardware.

· Barracuda and Trend have been renewed for 12 months, both essential elements of the ICT Security Technology Stack.

· Replacement of Nutanix hardware has commenced with the initial phase completing in June and further replacements planned for August/September.

· All standard ICT kit for hybrid workers including laptops, mobile devices etc is now funded within the capital budget.

· SNOW (software asset management tool) has moved to a cloud-based platform, moving the capital budget requirement to Revenue.

Organisational Impact and Implications

132. The report has the following implications:

· Financial – are contained throughout the main body of the report. Given the forecast financial position of the Council and the need to reduce expenditure, there will be a review of the capital programme. This review will need to identify ways in which capital expenditure can also be reduced.

· Human Resources (HR) – there are no direct HR implications as a result of this report. Any variations to the capital programme that have staffing implications will follow appropriate consultation and HR policies and procedures.

· Legal – whilst this report itself does not have any further legal implications, the schemes within the capital programme themselves will be in receipt of legal advice where necessary.

· Procurement – whilst there are no direct procurement implications relating to the report itself, procurement will be a main tool used to deliver schemes in the capital programme. Any services of works required, will be procured in accordance with the Procurement Act 2023 and the Council’s Contract Procedure Rules. Further advice regarding the procurement process and development of procurement strategies must be sought from the Commercial Procurement team.

· Health and Wellbeing – reductions in spend in some areas could impact on the health and wellbeing of both our staff and residents. The impact of any reductions in the capital programme will be carefully monitored so that implications can be considered and mitigated where possible.

· Environment and Climate action – as this report is mainly for information to update on the progress of delivery of schemes within the programme, there are no direct environment and climate action implications as a result of this report.

· Affordability – as this report is mainly for information to update on the progress of delivery of schemes within the programme, there are no direct affordability implications as a result of this report.

· Equalities and Human Rights -– as this report is mainly for information to update on the progress of delivery of schemes within the programme, there are no direct equalities and human rights implications as a result of this report. All individual schemes will be subject to Impact Assessments in the usual way.

· Data Protection and Privacy – as there is no personal data, special categories of personal data or criminal offence data being processed, there is no requirement to complete a data protection impact assessment (DPIA).

· Communications – the information set out in this report does not have any specific communications implications. The finance and performance monitor report elsewhere on this agenda includes details of the communications activity in relation to the overall council finances.

· Economy – there are no direct implications related to the recommendations.

Risks and Mitigations

133. There are a number of risks inherent in the delivery of a large-scale capital programme. To mitigate against these risks the capital programme is regularly monitored as part of the corporate monitoring process, and the project management framework. This is supplemented by internal and external audit reviews of major projects.

Wards Impacted

134. All wards are impacted by the issues detailed in the report.

Contact details

For further information please contact the authors of this Decision Report.

Author

Name:	Patrick Looker
Job Title:	Assistant Director of Finance
Service Area:	Finance
Email:	patrick.looker@york.gov.uk
Report approved:	Yes
Date:	18 August 2026

Co-author

Name:	Helen Malam
Job Title:	Finance Manager
Service Area:	Corporate Finance
E-mail:	helen.malam@york.gov.uk

Background papers

· Capital Budget 2026/27 to 2029/30 - Executive 27 January 2026

· Capital Programme Outturn 2025-26 - Executive 7 July 2026

Annexes

· Annex 1 – Capital Programme 2026/27 – 2030/31

Abbreviations

ACE Art Council England

AI Artificial Intelligence

AOVPN Always On Virtual Private Network

ASC Adult Social Care

BACS Bankers' Automated Clearing Services

BSIP Bus Service Improvement Plan

BT British Telecom

CCS Crown Commercial Service

CCTV Closed Circuit Television

CRM Customer Relationship Management

CYC City of York Council

DFG Disabled Facilities Grants

DoV Deed of Variation

DPIA Data Protection Impact Assessment

DSG Disability Support Grant

ECML East Coast Main Line

EPC Energy Performance Certificate

ETRO Experimental Traffic Regulation Order

EV Electric Vehicle

EZ Enterprise Zone

FLIP Future Libraries Investment Programme

GSM Global System for Mobile communication

HM His Majesty’s

HR Human Resources

HRA Housing Revenue Account

ICT Information and Communication Technology

IP Internet Protocol

IP2 Infrastructure Package 2

LCWIP Local Cycling and Walking Infrastructure Plans

LED Light Emitting Diode

LEVI Low Emission Vehicle Infrastructure

LNER London and North East Railway

MEND Museum Estate and Development Fund

MFD Multi-Functional Devices

MHCLG Ministry of Housing Communities and Local Government

MSCP Multi Story Car Park

NFM Natural Flood Management

NPG Northern Powergrid

OZEV Office for Zero Emission Vehicles

P&R Park and Ride

PGS Parking Guidance System

RIBA Royal Institute of British Architects

RNEP Rail Network Enhancements Pipeline

SEMH Social, Emotional & Mental Health (Needs)

SEND Special Educational Needs and Disabilities

SUNO Swale, Ure, Nidd, and Ouse (Upper)

RTI Real Time Information

TRO Traffic Regulation Order

TF Transport Fund

TSAR Traffic Signal Asset Renewal

UTC Urban Traffic Control

WYCA West Yorkshire Combined Authority

YMT York Museums Trust

YNYCA York North Yorkshire Combined Authority

YORR York Outer Ring Road

YSG York Station Gateway