By Kevin Dyson
Copyright dailyrecord
Controversies around large capital projects in South Ayrshires have sparked a review into how they are scrutinised and approved. A report going before councillors recommends adopting formal guidance on the levels of justification required for different types of capital spending. It could also see bigger projects ‘signed off’ at mutliple stages rather than simply being given the go ahead at the outset. If approved, the move would give clearer instructions on how to assess major investment projects to ensure they represent best value. The proposals follow questions from Audit Scotland over the robustness of business cases for certain schemes, and reflect concerns that the elements of the process were misleading. Officers note that most capital projects do not involve the full financial analysis implied by a business case. Under the guidance, all capital projects would require a Capital Project Assessment Bid (CPAB), with larger or more complex schemes subject to additional layers of justification. Three levels of assessment are set out: In some cases, particularly where projects carry ongoing revenue costs or depend on future income generation, a full business case would still be required. The report stresses that the guidance is intended as a framework rather than a rigid rulebook, but says it will ensure consistency across departments and improve decision-making on multi-million pound investments. It also sets out when further approvals from council or cabinet may be needed, including for projects that require public consultation, a subsidy control assessment, or a Best Value review. Recent experience with large-scale schemes, such as golf course improvement projects, has highlighted the need for more staged approvals. The report suggests councillors should be asked to sign off again once feasibility and value-for-money tests are clearer. The new system is also designed to address the challenge of tighter budgets, with capital resources stretched across statutory maintenance, regeneration, and discretionary projects. By formalising how bids are assessed, the council hopes to avoid abortive work and ensure their limited funding is channelled into projects that deliver the greatest benefit. If agreed, the changes will take effect from the end of September, with all new capital project bids required to follow the updated process. The report notes there is a risk that approvals may take longer, but warns that rejecting the guidance could compromise the council’s ability to demonstrate Best Value. Councillors will decide at today’s meeting of the full council whether to adopt the proposals and incorporate the new guidance into the Asset Management Plan.
