The Scrutiny Performance Panel - Service Improvement, Regeneration and Finance of Swansea Council met on Tuesday 6 October 2026. The meeting included discussions on the Quarter 1 Revenue and Capital Budget Monitoring Report and the Quarter 1 Performance Monitoring Report. The financial discussions highlighted significant pressures, with a projected overspend of nearly £14 million at the end of the first quarter, which has led to the implementation of severe spending restrictions. Discussions also covered the council's tourism performance, with a report indicating a strong visitor economy and successful marketing campaigns, alongside an update on the Destination Management Plan.

Revenue and Capital Budget Monitoring Report

The panel received a report detailing the council's financial position, which indicated a projected overspend of nearly £14 million at the end of the first quarter. This projection necessitated the implementation of severe spending restrictions across the general fund, affecting both revenue and capital budgets. Ben Smith, Director of Finance and S.151 Officer, explained that despite efforts to reduce the overspend, a net £12 million deficit remained, putting the council's general fund reserves at risk. He noted that while some measures would defer problems to future years, the current situation was particularly challenging due to uncertainties surrounding pay awards and funding from the Welsh Government.

Councillor Rob Stewart, Cabinet Member for Economy, Finance and Strategy, emphasized that the figures represented a projection rather than a current deficit. He acknowledged the challenging outlook, particularly with a new minority administration in the Welsh Government, which introduces risks around budget passage and funding allocations.

Several councillors raised questions about the council's financial resilience. Councillor Mark Tribe asked about the council's ability to borrow at attractive rates. Ben Smith responded that borrowing costs had significantly increased, with Public Works Loan Board rates for 13-year money now at 7%, compared to previous rates of 1-2%. He assured the panel that operational activities were being undertaken to mitigate these challenges.

The report detailed pressures in specific directorates, with Social Services facing a £13.6 million overspend, attributed to increased demand for commissioned care packages, residential placements, and domiciliary care. The Place directorate also reported an overspend of £1.799 million, primarily due to pressures in parks and cleansing, waste management, and planning, alongside a shortfall in planning fee income. Education was forecasting an underspend of £946,000.

The capital programme showed a forecast underspend of £21.5 million against the budget, partly due to project reprofiling and the pausing of capital spend as a result of the spending restrictions. A significant portion of the £50 million capital headroom remained unallocated, with £45 million available.

Quarter 1 Performance Monitoring Report

The panel received the Quarter 1 Performance Monitoring Report, which presented a new style of reporting focusing on the council's six well-being objectives. Councillor Andrew Williams, Cabinet Member for Development, highlighted that while overall performance was strong, there was increased pressure between demand and available resources, with some performance indicators rated as red. Lee Wenham, Head of Communications, Corporate Planning & Performance, explained the new format, which includes an at a glance summary, detailed analysis of each well-being objective, trend analysis, and risk assessments.

A key concern raised was the gap between service delivery and measurable outcomes. Officers acknowledged this and committed to challenging directors to demonstrate more evidence of how their work is making a difference to people's lives in Quarter 2. Councillor Geoff Jones questioned the accuracy of data collection but was assured by officers that robust systems were in place, including national indicators and internal data gathering on the in-phase system.

Councillor Mike White noted significant risks around financial sustainability, homelessness, workforce capacity, and demand pressures. He asked where the council had made the most progress and where things had become more challenging. Officers identified homelessness, capital project delivery, and increased demand for statutory services as ongoing challenges. Improvements were noted in the council's focus on performance, with clear action plans now supporting aspirations.

Tourism Destination Management Plan Update

Steve Hopkins, Strategic Manager for Tourism, Marketing and Events, provided an update on the Swansea Destination Management Plan. The report highlighted that tourism generated £696 million for Swansea's economy in 2025, supporting 5,498 jobs. Visitor numbers reached 4.63 million days. The Happy Place / Hwyl marketing campaign had been highly successful, generating over 16 million video views and directly supporting nearly 50 tourism businesses.

Councillor Michael Locke questioned the confidence that online engagement was translating into actual visitors and spending. Steve Hopkins expressed confidence, citing positive trends in visitor numbers and anecdotal feedback from businesses. Councillor Mary Jones raised concerns about hotel capacity being a barrier to growth, with many former hotels being converted into flats. The council is working with Welsh Government and Visit Wales to support local businesses and encourage investment in accommodation. The upcoming registration of all Airbnbs in Wales from October to March was noted as a way to gain better insight into this market.

Cruise visits were highlighted as a success, with two visits in June bringing around 400 visitors. However, limitations in dock infrastructure restrict the size of ships that can visit. The council is working with ABP and Cruise Wales to attract more calls and showcase the region.

The Happy Place marketing campaign, including short-form videos and out-of-home advertising, was praised for its success in reaching audiences and supporting businesses. Future campaigns are being developed to refresh the destination's marketing approach. PR visits by journalists and influencers have also generated significant coverage, with articles appearing in The Times, The Guardian, and national publications.

Web statistics showed a significant increase in impressions and page views on the Visit Swansea Bay website, although clicks on search engine results had decreased, attributed to industry trends with AI results. Social media engagement for both Visit Swansea Bay and Enjoy Swansea showed strong growth.

Major events like the Swansea Christmas Parade, Croeso, IRONMAN 70.3 Swansea, and the Wales Airshow were highlighted as successes. The Wales Airshow introduced an evening programme, Afterburn, which received positive public feedback. Amplitude and Swansea Sea Festival were also noted as successful new additions to the events programme.

Councillor Linda James raised concerns about the impact of tourism on local communities, particularly in Gower, and asked about resident feedback and changes in tourism management. The team is working to ensure event organisers engage with communities early and is developing an Event Strategy that will include a formal governance model for event registration and community involvement.

Councillor Mark Tribe requested an update on the progress of the Skyline attraction, which is currently on site. He also asked for clarification on how the £696 million tourism income figure is calculated and how day visitor numbers are determined. These questions were noted for a written response. He also stressed the importance of increasing the profile of tourism within the council and potentially expanding the tourism team.

Councillor Chris Holley asked for seasonal employment figures to be included in job profile data.

The panel also discussed the educational capital programme, with Mr. Smith explaining that cost reviews were underway due to construction inflation and the need to pace delivery within affordability envelopes. Intervention rates for schools had not changed.

Finally, Councillor Geoff Jones raised a question about the smoothing policy for Mandatory Repayment of Principal (MRP) and its future implications. An update on MRP flexibilities was expected at the November council meeting.