The coronavirus pandemic is being blamed for the council failing to spend more than a quarter of its capital budget last year.
An update on the corporate capital investment strategy this week revealed that nearly £10 million wasn’t used in 2021/22.
Members of the finance committee agreed the money could be carried into the current financial year and support the projects which it was already allocated for.
A report for members revealed the council’s corporate capital investment strategy budget last year was £33.293 million. However, just £23,646 million was spent.
The report states: “The impact of Covid-19 restrictions and the subsequent supply chain issues has contributed significantly to delays in the delivery
of capital projects over the past two financial years.”
Among the projects suffering was a zero waste park in Dumfries – a key component of the council’s new household recycling system.
Only £526,000 was spent, compared to an allocation of £1.587 million.
More than £1 million earmarked for the second phase of Dumfries Learning Town also went unspent.
According to the report, the “vast majority” of the unspent money is fully committed but projects have been unable to progress as quickly as hoped.
Although it was agreed to carry the cash forward, it was pointed out that inflationary pressures are having “an increasingly significant impact” on capital projects. Officers have been asked to carry out a review of the pressures and supply chain issues.
The report also revealed that more than £500,000 was generated from disposing of buildings that are no longer needed, including Woodbank in Dumfries and Applegarth Hall.
“With investment in priority projects, which includes some large infrastructure projects, we are very positive on the impact the capital investment strategy has on Dumfries and Galloway and our approach to working with communities to deliver capital investment has proven to work.”
