The Place, Sustainability & Climate Change Scrutiny Committee met on Tuesday 28 January 2025 to discuss the council's revenue budget strategy for 2025-2028, the Highway Asset Management Plan, and the 2025/26 business plans for various departments. Key decisions included the endorsement of the revenue budget strategy proposals, with a caveat regarding highway maintenance, and the noting of the Highway Asset Management Plan and the 2025/26 business plans.

Revenue Budget Strategy Consultation 2025/26 to 2027/28

The committee considered the council's revenue budget strategy for the upcoming three years. It was reported that the provisional settlement from the Welsh Government represented a 4.1% increase for Carmarthenshire, equating to £25.1 million. However, despite this increase, a substantial funding shortfall remains due to significant cost pressures, particularly the rise in Employers National Insurance rates.

Welsh Government service-specific grants were noted to be largely unchanged in cash value, which, when combined with inflation and pay awards, would negatively impact outputs. The funding shortfall means that the gap will need to be met by Carmarthenshire taxpayers, leading to a proposed council tax increase of 9.75% for 2025/26.

Concerns were raised about the critical level of budgetary overspend in schools, which has the potential to destabilise the authority's wider finances. It was deemed unlikely that further budget reductions could be made at this stage, and the proposed council tax increase was partly to support school budgets.

The committee also reviewed appendices detailing efficiency summaries, growth pressures, budget monitoring reports, and a charging digest for the Place, Infrastructure & Economic Development and Public Protection Services. The final budget proposals were scheduled to be presented to the County Council on 26 February 2025.

During the discussion, several points were raised:

• Precept Information: The Head of Financial Services confirmed that Town and Community Councils set their own precepts independently and these had not yet been received.
• Energy Savings: The council's joint procurement with the Crown Commercial Services was credited for locking in lower energy rates, alongside efficiency savings from improved asset energy efficiency. The fall in energy prices following the war in Ukraine was also noted as a contributing factor. Suggestions were made to explore renewable energy sources.
• Gully Clearing and Sweeping: The importance of maintaining gully clearing and sweeping was acknowledged, with the Highways Asset Manager explaining that resources are targeted based on priority.
• Bin Rationalisation: The Head of Environmental Infrastructure confirmed that only litter bins in laybys along trunk roads and non-amenity areas had been removed so far. Information was being circulated to councillors regarding bin removals in their wards, and engagement with Town and Community Councils was ongoing. Concerns were raised about potential increases in fly-tipping and blocked gullies due to bin removals.
• Parking Enforcement: The Head of Environmental Infrastructure stated that the second enforcement vehicle was now in place, and while full savings might not be achieved this year, a review of all car parking arrangements was underway.
• Road Conditions: Strong concerns were voiced about the continuing budget pressures impacting road conditions. Members acknowledged the difficulties in managing highway deterioration with decreasing budgets and proposed no further budget cuts to the Highway Maintenance Service.
• Waste Collection Issues: The Head of Environmental Infrastructure assured the committee that a report outlining issues and lessons learned from waste collection over the festive season would be provided.
• School Transport: The Head of Environmental Infrastructure explained that supplier costs were increasing, and Additional Learning Needs (ALN) provisions were a significant stress factor.

The committee resolved to receive the Revenue Budget Strategy Consultation and endorse the Charging Digest. However, they proposed that there be no further budget cuts to the Highway Maintenance Services.

Highway Asset Management Plan – Annual Statement Report 2024

The committee received the Highway Asset Management Plan (HAMP) Annual Statement Report 2024. The report highlighted the significant challenges faced by the authority, including the deterioration of the highway network due to underinvestment. It was noted that the current capital budget of £0.6 million for highway surface treatment in 2025/26 is significantly below the £8 million required annually to maintain the network in a stable condition, leading to an estimated £30 million funding gap over seven years.

Key points from the report included:

• Road Conditions: Carmarthenshire has the second-largest highway network in Wales, with the fourth-highest traffic levels. The backlog of carriageway maintenance is estimated at £76.8 million. The percentage of roads in poor condition is predicted to increase significantly over the next 10 and 20 years if current funding levels continue. Pothole reports have increased dramatically, with over 10,000 recorded in 2024, a 400% increase compared to typical levels up to 2021.
• Investment Options: Four budget scenarios were presented, showing the predicted impact of different investment levels on road condition. Option 1 (current budgets) shows a significant increase in roads in poor condition. Option 4 (steady-state) modelling an investment of £8 million per annum, would maintain a stable condition with a modest improvement in roads in good condition.
• Bridges and Structures: Carmarthenshire has 1,968 structures, including 804 bridges. Currently, 43 structures are classified as sub-standard, with 5 having formal weight limits. It is estimated that £13.2 million is needed to address the maintenance backlog and upgrade sub-standard structures.
• Highway Drainage: 18% of surveyed drainage pipes are blocked, unsafe, or have severely reduced performance, with 7% structurally unfit. An investment programme is underway, but the survey results indicate a need for extended investment.
• Footways and Cycleways: Over 1000km of footways and cycleways exist. In 2023/24, no footway works were carried out due to low capital funding, but £100k is allocated for 2024/25.
• Public Lighting: Over 20,000 lighting units are managed, with LED replacements significantly reducing carbon emissions and energy costs. However, 7,000 steel columns need replacement, and 304km of underground electrical cabling requires renewal, for which there is no current funding.
• Recycled Nappy Initiative: An initiative to pave highways with recycled nappies was highlighted as a successful step towards promoting a circular economy.

The committee acknowledged the critical state of the roads due to funding shortages and applauded the recycled nappy initiative. Concerns were raised about the drainage network's ability to cope with climate change, and the efforts in converting streetlights to LED were recognised.

The committee resolved to receive the Highway Asset Management Plan – Annual Statement 2024.

2025/26 Business Plans

The committee reviewed the Business Plans relevant to its remit for 2025/26, including those for Environmental Infrastructure, Place and Sustainability, Service Improvement, Leisure, and People, Digital and Policy.

Key points from the discussions on the Divisional Delivery Plans included:

• Environmental Infrastructure:
  • Actions related to litter pick events were discussed, with confirmation of an active programme with Keep Wales Tidy and Caru Cymru to support community-led litter picks.
  • Regarding the red bar on the nature emergency situation in action 16278, the Head of Place and Sustainability explained this reflected low public awareness scores from consultations. Significant work is underway with the Climate Change and Nature Awareness Partnership, including securing funding for land grants.
  • Clarification was sought on the 21-day target for ecology report responses to planning consultations, with the Head of Place and Sustainability explaining that while the target exists, external statutory regulators' response times are outside the council's control.
  • The Corporate Policy and Partnership Manager reported that 3597 residents responded to the 2024 annual resident survey.
  • The digitisation of vehicle requisitions to ascertain the technical and environmental practicability of electric vehicles was explained.
• Place and Sustainability:
  • Actions related to the Tywi Valley Path Active Travel Masterplans and the promotion of electric vehicle charging points were noted.
  • The development of a new cycling strategy and the lobbying for rail investment in West Wales, including the reopening of the Amman Valley railway line, were discussed.
  • The importance of community engagement in addressing fly-tipping and waste management issues was highlighted, with ongoing work with Keep Wales Tidy and Caru Cymru.
  • The development of a communication plan for Local Environmental Quality and the use of CCTV for environmental enforcement were noted.
  • Actions to manage and resource seasonal hot spots and review public realm policies were discussed.
  • The plan to bring elements of surface dressing work in-house was mentioned as a cost-saving measure.
  • The review of car parking arrangements was ongoing.
  • The need for a new kerbside waste collection system compliant with Welsh Government's Blueprint methodology was outlined.
  • The development of a circular economy strategy and educational programmes on repair, reuse, and recycling were highlighted.
  • The review of the Highways Asset Management Plan to incorporate Net Zero Carbon objectives and the development of a fleet strategy for electric vehicles were noted.
  • The importance of training for fleet fitters on electric/hybrid vehicles was mentioned.
  • The plan to develop a new fleet risk and operating policy and systems for monitoring vehicle utilisation were discussed.
  • The intention to lobby Welsh Government for funding for public transport infrastructure improvements and a feasibility study for a passenger railway and cycle route along the Gwendraeth Valley was noted.
  • The development of community-focused Place Plan guidance and the review of the Equestrian Strategy were highlighted.
  • The plan to develop a new car parking strategy aligned with economic and sustainable transport goals was mentioned.
• Service Improvement and Transformation: Actions included the digitisation of highway structures records, the implementation of a new approval process for vehicle hire and purchase to maximise ultra-low emission vehicles, and the development of a training plan for waste service recruits.
• Leisure and Public Protection Services: The committee received the divisional delivery plan, noting actions related to food hygiene inspections, animal welfare licensing, and the implementation of new licensing laws for special procedures.
• People, Digital and Policy (Crime Only): The committee noted actions related to crime prevention, domestic abuse training, and the development of a new taxi licensing policy.

The committee unanimously resolved to endorse the Business Plans relevant to its remit for 2025/26.

Forthcoming Items

The committee received a list of forthcoming items for its next meeting on 10 March 2025. It was agreed to remove River Pollution from the agenda, as this had been previously considered and responsibility largely lay with Natural Resources Wales (NRW). The Transportation in Carmarthenshire report would include information on the Regional Transport Plan and the franchise bus model in Wales.

The committee also noted the minutes of the previous meeting held on 20 November 2024.