RUTLAND County Council has published a report confirming the majority of its capital investment programme remains affordable and deliverable, following a comprehensive review prompted by changing economic pressures.

The Council approved its latest annual budget, capital investment programme and medium-term financial strategy (MTFS) in February 2026. Since then, global economic conditions have changed rapidly, leading to a sharp rise in inflation, energy costs and the price of construction materials.

Councillor Andrew Johnson, Cabinet Member for Governance and Resources says: "Recent disruption to the world economy is already having a big impact on councils. When we set our budget in February, inflation was forecast to stay around 2 per cent

"That number has roughly doubled in the space of two months, which will increase costs across our services. We must also account for higher energy, supply chain and construction costs. We need to make sure that budget plans agreed in February are still affordable and that we remain financially stable in this climate of economic uncertainty."

To make sure sudden cost increases do not compromise the Council's finely balanced budget, officers have begun carrying out a series of financial health checks.

This has started with a detailed review of its capital programme, which allocates £55million for structured investment in things like highway maintenance as well as other community infrastructure. The review assessed all approved capital schemes against updated assumptions on inflation, supply chain costs and financing.

A report to cabinet says despite heightened global uncertainty, the review indicates that most schemes can still be delivered within existing budgets, subject to adjustments in scope, specification or delivery timing.

It is recommended that two major construction projects – plans for a new medical innovation centre at Oakham Enterprise Park and the redevelopment of Rutland County Museum into a new Cultural Centre – be revised due to the extent of new cost pressures and risks.

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Cllr Johnson added: "The capital programme review has looked carefully at all our projects and identified two priority schemes where increased cost pressures and delivery risks mean our plans need to change. Our analysis shows that the new Medi Tech scheme, with its health offer and employment opportunities, remains deliverable through value engineering and funding adjustments. Plans for the Cultural Centre and Rutland Sea Dragon carry a lot more risk in terms of their affordability.

"Importantly, we can still deliver our original Levelling Up plan for reinterpreting the museum collection and creating fantastic new digital experiences that attract more visitors. Unfortunately, the increased cost, liabilities and restrictions associated with conserving and housing the Sea Dragon are now much bigger, meaning we can't proceed with this. If we continue with plans to acquire and conserve the fossil, we will exceed our original budget for the Cultural Centre by £1million – possibly more.

"Returning to our original Levelling Up proposal would mean that we can still enhance the museum by creating an exciting new visitor attraction and multifunctional space for the community. In the current climate and with all the additional pressure on our budget, it's extremely positive that we can still deliver most of our capital programme, with appropriate steps taken to control costs and ensure value for public money."

Cabinet will consider the Capital Programme Review and recommendations at its next meeting on Tuesday, 12 May. The report can be viewed here.