Property activity pushes Q1 capital expenditure to 10-year high
0Spending on land and buildings pushed English councils’ capital expenditure to its highest quarter one total in ten years, according to government statistics.
The MHCLG figures showed total capital expenditure of £4.3bn between April and June this year, up 21% on the same period the previous financial year.
This was £329m more than the previous peak of £4bn in Q1 2016/17..
Notes accompanying the statistical release, said: “The overall increase in expenditure on fixed assets was caused by a substantial increase in acquisition of land & existing buildings (£765m, up £240m (46%)), which more than made up for lower levels of spending on all other fixed asset sub-categories, while the overall increase in financial expenditure was caused by increases in all financial expenditure subcategories.”
During the quarter, Runnymede Borough Council was the major contributor to expenditure on land and buildings, spending £171m, including £85m on Pine Trees Estate Business Park in Egham and £53m on VW Financial Services.
Greater London Authority (GLA) was the biggest spender on grants, spending £584m on housing grants and a grant to Crossrail.
Local authorities in England received £665m of capital receipts in Q1 2018-19, £132m (25%) more than in Q1 2017-18, “almost entirely the result of sale and disposal of tangible fixed assets, which brought in £649m, £127m (24%) more than in the same period in the previous financial year”, the department said.
