The Corporate Performance & Resources Scrutiny Committee of Carmarthenshire Council met on Friday 31 January 2025 to discuss the council's financial strategy, policies, and performance. Key topics included the revenue budget strategy for 2025-2028, the treasury management policy, the five-year capital programme, and the revenue and capital budget monitoring report for 2024/25. The committee also reviewed the council's performance for the second quarter of 2024/25 and considered forthcoming items for future meetings.

Revenue Budget Strategy Consultation 2025/26 to 2027/28

The committee was asked to consider and comment on the council's revenue budget strategy for the financial years 2025/26 to 2027/28. This strategy outlines the initial view of the revenue budget issues for the forthcoming years, taking into account departmental submissions and projections of spending requirements. The report detailed funding projections based on the provisional settlement from the Welsh Government, highlighting the impact of increased cost pressures, particularly concerning Employers' National Insurance contributions. It also presented budget monitoring extracts for the Chief Executive and Corporate Services departments, alongside a charging digest for these services. The report indicated a projected requirement for £30 million in savings over the three-year Medium Term Financial Plan (MTFP) period. The committee was also asked to consider proposals for delivering efficiency savings and to examine departmental budgets.

Treasury Management Policy and Strategy 2025-26

A report was presented outlining the council's Treasury Management Policy and Strategy for 2025-26. This strategy details the expected activities of the Treasury Management function, including treasury indicators and limits on activity, prospects for interest rates, borrowing strategy, and investment strategy. The council's policy defines treasury management as the management of borrowing, investments, cash flows, banking, money market, and capital market transactions, with a focus on effective risk control and the pursuit of optimum performance. The strategy also covers debt rescheduling, premature repayment of debt, performance indicators, treasury management advisers, and member and officer training. The report included appendices detailing the Prudential Indicators, Minimum Revenue Provision (MRP) Statement, and the Schedule of Approved Counterparties for Lending.

Five Year Capital Programme (Council Fund) 2025/26 to 2029/30

The committee was asked to examine the proposed five-year capital programme for 2025/26 to 2029/30. This programme, totalling £176.6 million over five years, aims to deliver key projects that will create jobs and improve the quality of life for the residents of Carmarthenshire. Key investments include significant funding for schools, social care, economic development, and place and infrastructure projects. The report highlighted that while the programme is fully funded in the first year, there is an unfunded balance of £2.206 million over the five-year period, requiring future funding identification or scope amendments. The programme has been developed in line with the council's Corporate Strategy and includes an emphasis on carbon efficiency in new projects, reflecting the authority's commitment to decarbonisation.

Revenue & Capital Budget Monitoring Report 2024/25

This report provided an update on the budgetary position for 2024/25 as at 31 October 2024. The revenue budget monitoring indicated a forecasted departmental overspend of £19.2 million, including school budgets, with a projected overspend on the authority's net revenue budget of £8.7 million. This was attributed to factors such as schools setting in-year budgets exceeding allocated funding, persistent overspends in children's services driven by increased demand for high-cost residential placements, and challenges in delivering savings targets. The capital programme showed a forecasted net spend variance of -£26.972 million against the approved budget. The report also detailed variances within each department and highlighted new projects and virements for the current year.

2025/26 Business Plans

The committee was asked to review the proposed actions and measures within the relevant business and delivery plans for 2025/26. These plans are intended to demonstrate how the council will achieve its Well-being Objectives and maintain service delivery. The plans considered by the committee included those for Revenue and Financial Compliance, Financial Services, Legal, Governance & Civil Services, People, Digital and Policy, Marketing & Media, and Economic Development & Property. The report noted that business plans are working documents and subject to change.

2024/25 Quarter 2 - Performance Report (01/04/24-30/09/24)

This report presented the progress made as at the end of Quarter 2 of the 2024/25 financial year against the deliverables linked to the Corporate Strategy and Well-being Objectives. The report provided a summary of progress across various Well-being Objectives, including those related to enabling children and young people, residents to live and age well, communities and the environment, and organisational transformation. It highlighted areas that were on target, off target, or not reported, offering explanations for variances and outlining remedial actions where necessary.

Forthcoming Items

The committee received a list of forthcoming items scheduled for consideration at its next meeting on 6 March 2025. These included minutes from the Public Services Board (PSB), a bi-monthly update from the Transform, Innovate and Change (TIC) team, and the Revenue Budget Strategy Consultation 2025/26 to 2027/28. The committee also noted the attached Cabinet Forward Work Programme, which is regularly updated.

Minutes of the Meeting Held on 18 December 2024

The committee was asked to sign the minutes of the previous meeting held on 18 December 2024 as a correct record. The minutes indicated that apologies for absence were received from Councillor Darren Price, Leader. Declarations of personal interest were noted from Councillor A. Evans regarding Item 4 (Corporate Performance and Resource Scrutiny Committee Q2 Cumulative Sickness Absence Performance Report 2024/25) and Item 6 (Revenue & Capital Budget Monitoring Report 2024/25). No public questions were received. The committee considered the Q2 2024/25 Sickness Absence Performance report, noting that no department had met its target and that short-term absence had increased. The report also detailed discussions on hybrid working, the impact of NHS waiting times on occupational health services, and a managers' wellbeing week. The committee resolved to receive the Q2 cumulative Sickness Absence Performance report and the end-of-year update. The committee also considered a report reviewing the Authority’s approach to transformation during 2023/24 and the first six months of the current year, noting discussions on the piloting of AI, recruitment freezes, and online training through the Thinqui system. The committee resolved to receive the Transformation Programme Annual Report 2023/24 and the 6-month update 2024/25. Finally, the committee considered the Revenue & Capital Budget Monitoring Report 2024/25, noting a forecasted end-of-year overspend of £10.2 million on the Authority’s net revenue budget. The committee resolved to receive this report. The Mid-Year Treasury Management and Prudential Indicator Report for the period 1 April 2024 to 30 September 2024 was also considered, confirming that activities were consistent with the Treasury Management Policy and Strategy. The committee resolved to receive this report. The minutes of the Carmarthenshire Public Services Board (PSB) meeting held on 17 September 2024 were also received, with members noting the absence of health board members and highlighting challenges faced by communities in finding suitable land for food production. The committee resolved to receive the PSB minutes. A report detailing progress on scrutiny actions was also received, and the committee resolved to note this report. Finally, a list of forthcoming items for the next meeting on 31 January 2025 was received.