The Scrutiny Performance Panel - Service Improvement, Regeneration and Finance met on Tuesday 10 December 2024 to discuss the medium-term budget statement, the recycling and landfill performance report, and the annual report on public library standards. Key decisions included noting the council's financial position amidst upcoming Welsh Government budget announcements and reviewing the library service's performance against national standards.

Medium Term Budget Statement

The panel received an update on the council's medium-term budget, with Director of Finance, Ben Smith, and Councillor Rob Stewart, Cabinet Member for Economy, Finance and Strategy, providing insights into the potential impacts of recent UK and Welsh Government budget announcements. Mr Smith noted that while the full implications of the UK Government's budget were still being assessed, there was an expectation of a more beneficial settlement for the council than previously anticipated. He highlighted significant budget pressures in social care, teachers' pensions and pay, and homelessness, which were affecting councils across Wales.

A key concern raised was the uncertainty surrounding compensation for increased National Insurance contributions, which could cost the council an estimated £8 million directly, with further indirect costs expected, particularly in the care sector. Mr Smith explained that the exact compensation mechanisms and amounts were still unclear, and that the detail would be crucial in understanding the true financial impact. Councillor Geoff Jones questioned the potential total figure for direct and indirect costs, to which Mr Smith responded that while he had figures in mind, commercial sensitivity prevented him from revealing precise assumptions on social care provider fee increases.

Regarding the council's overall financial outlook, Mr Smith indicated that a 6-7% uplift in aggregate external finance would be necessary to standstill, covering increased costs for teachers' pay and pensions, National Insurance, and the real living wage, without allowing for growth. He expressed optimism that the upcoming Welsh Government budget settlement would be at the good end of the spectrum in terms of savings required, but stressed that significant pressures in social care and homelessness would remain.

Councillor Peter Black CBE raised questions about the sequencing of grants and their inclusion in the Revenue Support Grant (RSG). Mr Smith confirmed that most grants, such as those for teachers' pay and pensions, were expected to be transferred into the RSG, with National Insurance potentially being handled via a specific grant initially. He also discussed the complexities of capital investment, advising caution on new borrowing due to elevated interest rates, and suggesting a preference for borrowing only when rates fall to a more favourable level.

Recycling and Landfill - Annual Performance Monitoring Report

The panel reviewed the Recycling and Landfill Annual Performance Monitoring Report for 2023/24, presented by Councillor Cyril Anderson, Cabinet Member for Community Services, and Matthew Perkins, Group Leader for Waste Management. The report highlighted that the council had exceeded the statutory recycling target of 64%, achieving 70.5%, placing it fifth in Wales for recycling performance. This achievement was noted as particularly commendable given challenges such as a large commercial sector and high-density housing.

Councillor Mike White congratulated the department on exceeding targets and inquired about plans to engage the public further, specifically asking if a promotion trailer would be taken into the city centre. Mr Perkins confirmed that while teams had been targeting supermarkets and student areas, he would discuss the possibility of engaging in the city centre with the team leader.

Councillor Chris Evans asked about home composting and whether there were plans to support it, to which Mr Perkins responded that the council was awaiting guidance from Welsh Government on future recycling targets, which might focus more on carbon outcomes.

Councillor Matthew Jones echoed congratulations on the recycling figures and asked about plans to engage with residents who were not recycling effectively, as well as the rollout of reusable receptacles and new waste streams. Mr Perkins explained that reusable containers were purchased and planned for rollout in 2025, and that trials for collecting plastic film were underway, with potential for upscaling. He also mentioned that collecting smaller items like toasters and kettles was being considered, with a focus on higher volume materials first.

Councillor Peter Black CBE raised the possibility of collecting Tetra Paks and animal food pouches. Mr Perkins noted that while these were small volumes for curbside collection, animal food pouches could potentially be captured as flexible plastic, and that extended producer responsibility legislation due in the next few years would likely drive changes in the recycling market.

The discussion also touched upon the baling plant's operations, with Councillor Black requesting a detailed report on sales, income, and auditing. Mr Perkins indicated that some of this information was in the financial implications section of the report and that the operations were audited, but suggested a closed session might be appropriate for more detailed commercial information.

Councillor Mary Jones raised questions about the success of workplace recycling legislation, the provision of litter bins in public spaces, and the segregation of bins in different areas. Mr Perkins explained that workplace recycling legislation applied to businesses, not street litter bins, and that while it had improved commercial waste recycling, overall performance was still impacted by the large commercial sector. He acknowledged the difficulties in public-facing recycling and the challenges of inconsistent bin provision.

Councillor Will Thomas asked about the fate of black bags at the baling plant and potential investment in robotics for sorting. Mr Perkins clarified that black bags were not sorted and were sent directly to energy from waste facilities, aligning with Welsh Government's direction. He noted that while robots were becoming more common in the industry, they were currently experimental and expensive, and not yet practical for the council's operations.

Councillor Matthew Jones inquired about food waste recycling, and Mr Perkins stated that food waste constituted about 18% of black bag waste, a reduction from previous years due to policies like the three-bag limit and Keep Recyclables Out campaign. He confirmed that public-wide communications next year, coinciding with the rollout of reusable containers, would include messages about food waste recycling.

Finally, Councillor Peter Black CBE raised concerns about an increase in complaints against waste management, largely due to collection issues. Mr Perkins acknowledged service issues and explained the process for handling corporate complaints, noting that less time had been available for individual issues this year due to ongoing service challenges.

Welsh Public Library Standards Annual Performance Report

The panel received the annual report on Welsh Public Library Standards for Swansea Libraries, presented by Councillor Elliott King, Cabinet Member for Culture, Human Rights and Equalities, along with Karen Gibbins, Library Services Manager, and Karen Davies, Principal Librarian. The report detailed Swansea's performance against the Welsh Public Library Standards framework for 2023-24.

Swansea met all 13 core entitlements and performed well in several areas, including virtual visits, active borrowers, loans of materials (particularly digital content), and a significant increase in event attendance and user support. The report highlighted a 48% rise in event attendance, reaching 80,000, and a 26% increase in informal user support, with formal user support seeing a remarkable 158% rise.

However, the service performed less well in terms of acquisitions budgets, the number of qualified staff, and the amount of time staff devoted to training. Councillor Dai Jenkins inquired about the number of full-time and part-time staff and any long-term sickness affecting services, which Ms Gibbins stated she could provide in a letter. Councillor Will Thomas asked about children's book provision and the acceptance of book donations. Ms Davies confirmed that the council monitored spending on children's books and welcomed suitable book donations, but not in large quantities.

Councillor Peter Black CBE raised concerns about the condition of library buildings, with Mr King confirming that works had been undertaken to maintain building integrity and that a project was underway to assess the potential for libraries to function as community hubs.

Councillor Chris Evans asked about the new library management system, Spyder, which is being rolled out across Wales. Ms Davies explained that the system was expected to offer a more modern online customer interface, with improved recommendation features and integrated event information.

The panel also received requests for a list of individual library usage figures and stock levels to demonstrate value for money to the public.

The report concluded that Swansea Libraries would focus on maintaining good performance while addressing areas of concern, including spending on materials, staff qualifications, Welsh language materials, and training. Future plans include developing a new library management system, planning for the move of the Central Library to Y Storfa, and celebrating the library service's 150th anniversary in 2025.