Capital expenditure
Our capital expenditure is money we spend on assets – such as land, buildings, vehicles or equipment – that will be used for more than one year.
This also includes:
- spending on assets owned by other organisations
- loans and grants that enable other organisations to buy or build assets
For an individual asset, it is usually used for the one-time purchase cost. It cannot be used to pay for day-to-day running costs.
Capital expenditure can be paid from:
- money set aside from the General Fund or Housing Revenue Account
- special grants from the government for specific projects
- loans
- contributions from developers or other organisations
- money raised by selling assets
When an asset is no longer needed it may be sold so that the money raised – known as 'capital receipts' – can be spent on new assets or used to repay debt.
Our capital programme is a list of projects we plan to fund using capital expenditure.
We approve an updated Capital Strategy before the start of each financial year (1 April to 31 March).