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12. Capital expenditure and receipts (Charts 18 and 19)
Local authorities' total housing capital expenditure financed from all sources (including new borrowing, useable receipts and financed from current expenditure) is projected to total £505.7 million in 2008-09, an increase of £51.9m million (11.4% increase) over 2007-08. Capital expenditure can vary substantially from year to year. Notable increases in planned capital expenditure between 2007-08 and 2008-09 include East Renfrewshire (66% increase), Orkney (64%), Midlothian (57% increase) and South Ayrshire (40% increase). The very large increase in Midlothian's capital expenditure (from £8.7 million in 2005-06 to a planned £44.5 million in 2008-09 mainly reflects the council's new house building programme.
Councils have budgeted on the basis that they will raise £201.7 million of capital receipts in 2008-09. This is a reduction of £29.2 million (12.7% reduction) over the £230.9 million receipts in 2007-08. Capital receipts come mainly from sales of council houses under right to buy, but can also come from sales of housing land following demolition or improvement or sales or transfers of groups of properties to housing associations. The budgeted reduction in receipts will in part reflect caution in budgeting in the light of falling numbers of right to buy sales in the recent period.
Chart 18: Scotland: Gross Capital Expenditure and Receipts
Chart 19: Estimated Capital Expenditure and Receipts: 2008-09
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