The Carmarthenshire Council Cabinet met on Monday 17 February 2025 to discuss and approve the revenue budget strategy for 2025/26 to 2027/28, which included a 9.75% Council Tax increase. The Cabinet also approved a five-year capital programme totalling £187.9 million and adopted the Welsh Government Corporate Parenting Charter.

Revenue Budget Strategy 2025/26 to 2027/28

The Cabinet recommended to the County Council the approval of the Budget Strategy for 2025/26, which includes a proposed Net County Council Budget of £518.623 million. This strategy necessitates a 9.75% increase in Council Tax for 2025/26, resulting in a Band D Council Tax of £1,759.07. The Medium Term Financial Plan highlights that significant budget reductions, estimated at £20 million over the 2026/27 and 2027/28 financial years, will be required.

Key decisions made included:

• Approval of the Budget Strategy for 2025/26: This includes amendments detailed in paragraph 4.1.5 of the report.
• Approval of the Band D Council Tax for 2025/26: This amounts to £1,759.07, representing a 9.75% increase.
• Approval of the removal of specific savings proposals: These were identified in paragraph 3.2.7 of the report, with adjustments made based on public and councillor feedback. Notably, proposals to close or asset transfer public conveniences were withdrawn, car parking charge increases were curtailed, and savings to highways and flood defence budgets were reduced.
• Approval of the Medium Term Financial Plan: This will form the basis for future financial planning.
• Delegation of authority: The Director of Corporate Services, in consultation with the Chief Executive, Leader, and Cabinet Member for Resources, was delegated authority to make any necessary amendments following the receipt of the Welsh Government's final settlement on 25 February 2025.

The report detailed significant financial pressures, including increased demand in service areas like older people's residential and home care, and care for adults with learning disabilities and mental health needs. It also highlighted overspends in children's services due to increased demand and agency costs, as well as delegated school budgets exceeding allocated budgets. Validation factors for inflation and pay were also updated, with a proposed increase in the allowance for 2025/26 to 2.5%.

The consultation process, which received over 2,900 responses, indicated a general appreciation of the challenges faced by the Council and the difficult choices required. Adjustments were made to the budget proposals based on this feedback, including the withdrawal of proposed asset transfers for public conveniences and the curtailment of car parking charge increases.

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

The Cabinet approved a five-year Capital Programme totalling £187.9 million. The programme for 2025/26 is a hard budget, while subsequent years are soft/indicative budgets. The programme is projected to be fully funded, with £94.673 million in gross expenditure for 2025/26, funded by £42.794 million from the council's own resources and £51.879 million from external sources.

Key investments within the programme include:

• Schools: £44 million allocated for improvements to school buildings and children's homes.
• Social Care: £20 million for a new care home at Plas y Bryn, Cwmgwili, and £12 million for Disability Facility Grants.
• Place and Infrastructure: £61 million for improvements to local economic highways infrastructure and recycling infrastructure, including £1.2 million for flood mitigation and £1 million for decarbonisation measures.
• Economic Development: £33 million for projects aimed at boosting economic activity, including £15.5 million from the Levelling Up Fund for Llanelli Town Centre and £7.8 million for the Carmarthen Town Centre Hub.
• Digital: £5 million for critical digital IT hardware and infrastructure.
• Corporate: An £11 million Capital Investment Fund has been established to manage future capital projects.

The Capital Strategy, which sets out the long-term context for capital expenditure and investment decisions, was also approved.

Treasury Management Policy and Strategy 2025-26

The Cabinet recommended the approval of the Treasury Management Policy and Strategy for 2025-26, along with associated indicators and strategies. This policy adheres to the revised CIPFA Code of Practice on Treasury Management and the Local Government Act 2003. The strategy outlines the management of the Council's borrowing, investments, and cash flows, with a focus on security, liquidity, and yield.

Key aspects of the strategy include:

• Interest Rate Exposure Limits: Maximum exposure limits for fixed and variable interest rates were proposed.
• Maturity Structure of Borrowing: Upper and lower limits were set for different borrowing maturity periods.
• Investment Strategy: The primary objectives are safeguarding principal and interest, ensuring adequate liquidity, and achieving optimal returns. Investment counterparties are selected based on credit ratings, with specific limits for different categories of institutions, including UK Banks, Building Societies, Money Market Funds, and the UK Government.
• Environmental, Social, and Governance (ESG) Considerations: While treasury investments are primarily short-term, ESG factors, particularly governance, are considered in counterparty selection, as credit rating agencies increasingly incorporate these into their assessments.

Business Rates – Retail, Leisure and Hospitality Rates Relief Scheme 2025/26

The Cabinet adopted the Welsh Government's Retail, Leisure, and Hospitality Rates Relief Scheme for 2025/26. This scheme will provide eligible occupied properties with a 40% discount on their non-domestic rates bill. The relief is fully funded by Welsh Government grant, meaning it comes at no cost to the Authority, provided the guidelines are adhered to. A cap of £110,000 per business across Wales applies to the total relief claimable.

Carmarthen Business Improvement District (BID) – New Ballot

The Cabinet agreed to support the Carmarthen BID Company Ballot for a new five-year term. This involves facilitating a formal ballot to determine if rateable businesses wish to continue the BID. The Council will support the principle of the BID and the voting process for its 18 affected rateable properties, with an estimated annual levy of £25,422 plus inflation. The Council also agreed to conduct the BID levy collection on behalf of the Carmarthen BID Company at no charge for the new term and to oversee the ballot process without fee. The Statement of Baseline Services was endorsed, and the Cabinet agreed to nominate a representative to serve on the BID Company Board.

Road Risk Policy

The Cabinet adopted the updated Road Risk Policy for the Authority. This policy is a legal requirement designed to uphold high standards in the management of health and safety, minimising risks to employees and others arising from the use of motor vehicles. It aims to raise awareness of occupational road risks and reduce associated risks to an acceptable level for employees, Elected Members, the public, and the Council. The policy applies to all authorised drivers, including employees, agency workers, contracted persons, and Elected Members. An accompanying Driver Handbook outlines operational requirements for drivers.

Proposal for Carmarthenshire County Council to Adopt the Welsh Government Corporate Parenting Charter

The Cabinet endorsed the adoption of the Welsh Government Corporate Parenting Charter. This Charter sets out principles and promises for public bodies to support care-experienced children and young people, aiming to ensure they have the same life chances as their peers. The Council's Corporate Parenting Panel will oversee the integration of the Charter's principles across all relevant departments and services, building upon the Council's existing statutory duty under the Social Services and Well-being (Wales) Act 2014.

Other Items

Councillor Linda Evans declared a personal interest in the Business Rates – Retail, Leisure and Hospitality Rates Relief Scheme 2025/26 due to her sister managing a hairdressing business, and left the Chamber during its consideration. Councillor D.M. Cundy attended the meeting virtually. Councillor P.M. Hughes was noted as having an apology for absence. No questions on notice from members or the public were submitted.