for Local Authority Capital Programmes:
A Public Policy Innovation Framework
FEATURED PAPER
By Dr. Maxwell Ayodele Olukundun i and Jesse Opeyemi Williams ii
i Blackpool and Fylde College University Centre
Blackpool, UK
ii Debt Management Department
The Department for Work and Pensions, UK
Abstract
Purpose: This paper examines the integration of debt management into project governance for UK local authority capital programmes. Borrowing is positioned not solely as a finance or treasury function, but as a project, programme, and portfolio governance risk with significant implications for affordability, sustainability, and public value.
Design/methodology/approach: The paper adopts a qualitative desk review methodology, drawing on UK government policy documents, CIPFA guidance, public-sector project delivery standards, audit reports and project management literature to develop a conceptual framework.
Findings: The review identifies five key themes: capital projects function as public policy delivery mechanisms; borrowing generates long-term governance obligations; debt risk is frequently separated from project risk; inadequate benefits realisation can result in policy failure; and stage-gate governance enhances debt control.
Originality/value: This paper introduces a Debt-Aware Project Governance Framework that integrates strategic policy alignment, debt affordability, delivery risk, revenue and benefits impact, governance assurance, and portfolio-level debt exposure. The framework provides a practical governance innovation for local authorities aiming to strengthen borrowing decisions, improve project assurance, enhance accountability, and ensure that debt-funded capital programmes deliver sustainable public value. It contributes to international public policy innovation and project management practice.
- Introduction
1.1 Background
Local authorities in the United Kingdom use capital programmes to deliver major public policy objectives, including housing, regeneration, transport, schools, digital transformation, service improvement and environmental infrastructure. Capital investment is therefore not only a financial or technical activity; it is a practical mechanism through which councils convert policy priorities into visible outcomes for communities. The UK Government recognises that local authority capital investment is essential for economic regeneration, housing, school improvements and service transformation, while also requiring value for money and protection of taxpayers’ money (Ministry of Housing, Communities and Local Government, 2021).
This role is particularly significant as public-sector projects and programmes are central to delivering economic growth, infrastructure, improved services, and sustainable outcomes. The Government Project Delivery Function Strategy 2025 affirms that projects and programmes are fundamental to improving infrastructure and services, supporting economic growth, and delivering benefits for citizens across the United Kingdom (Government Project Delivery Function, 2023). Consequently, local authority capital programmes should be regarded as public policy delivery vehicles rather than solely as construction or asset investment activities.
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How to cite this paper: Olokundun, M. A., Williams, J. O. (2026). Debt-Aware Governance for Local Authority Capital Programmes: A Public Policy Innovation Framework; PM World Journal, Vol. XV, Issue IX, September Available online at https://pmworldjournal.com/wp-content/uploads/2026/09/pmwj168-Sep2026-Olokundun-Williams-Project-Governance-and-Fintech.pdf
About the Authors
Dr. Maxwell Ayodele Olokundun
Blackpool, United Kingdom
Dr Maxwell Ayodele Olokundun is Programme Leader in Project Management at Blackpool and The Fylde College University Centre, United Kingdom. An accomplished academic, researcher, and higher education leader, he has extensive experience in project management education, curriculum development, quality assurance, and student success. His research interests include project governance, innovation management, entrepreneurship, and organisational performance. Dr Olokundun is committed to advancing knowledge and practice through research, teaching, and industry engagement. He can be contacted at Maxwell.Olokundun@blackpool.ac.uk
Jesse Opeyemi Williams
Blackpool, United Kingdom
Jesse Opeyemi Williams is an Admin Officer in the Debt Management department of the Department for Work and Pensions (DWP), United Kingdom. He has experience in public sector administration, debt management, customer engagement, and financial accountability. His professional interests include financial technology, governance, public policy, and the application of innovative solutions to improve organisational and societal outcomes. He can be contacted at williamsjesse777@gmail.com
