The Policy Review and Performance Scrutiny Committee of Cardiff Council met on Wednesday 10 September 2025 to discuss the Panel Performance Assessment and Annual Wellbeing Report 2024/25, the Budget Update for 2026/27 and Month 4 Monitoring Report 2025/26, and the Annual Property Plan 2025/26. Key discussions included the findings of an independent assessment that described Cardiff Council as a good and ambitious council with sound governance, and recommendations for refining scrutiny practices, strengthening the link between economic growth and social justice, and improving workforce diversity. The committee also reviewed the Council's financial position, noting a projected budget gap of £38.4 million for 2026/27, and discussed the Annual Property Plan, which outlines targets for running cost reduction, statutory compliance, carbon reduction, capital receipts, and rental income.

Panel Performance Assessment and Annual Wellbeing Report 2024/25

The committee reviewed the findings of an independent Panel Performance Assessment (PPA) which concluded that Cardiff Council is a well-run council, with aligned and effective political and corporate leadership and is well-respected by its partners. The PPA made three recommendations: to review the balance of scrutiny activity to allow for more thematic approaches and public engagement, to develop a renewed vision linking economic success with Fairer Greener Cardiff ambitions, and to refine the connectivity between the Change Programme, Medium-Term Financial Plan (MTFP), and workforce strategy, with a focus on diversity and succession planning.

Councillors expressed pride in the PPA's findings, with many noting the positive experience of engaging with the panel. A significant portion of the discussion focused on how to implement the recommendations, particularly regarding the balance of scrutiny activity. There was a consensus that while pre-decision scrutiny is effective, there is a need to shift focus towards more policy development work. A review of scrutiny arrangements will be undertaken, involving members, to maximise the policy-focused role of scrutiny. Councillor Mike Ash-Edwards highlighted that the issue of scrutiny arrangements was a dominant theme during the all-member discussion with the panel, with a feeling among backbench councillors that member engagement with scrutiny had declined.

The committee also discussed the Annual Wellbeing Report 2024/25, which highlighted that sickness absence rates remain above target and will be a key focus of the workforce strategy review. The new role of Frontline Services will have a mandate to improve sickness absence. Concerns were raised about street cleanliness, with a perceived link between changes to recycling and waste processes and a deterioration in street scenes. The council acknowledged the need for behaviour change in a small segment of the population and is open to intelligence on barriers to appropriate behaviour. The fall in website traffic to the Hubs was attributed to website maintenance and an updated cookie policy impacting tracking. The council is also awaiting guidance on the interpretation of the Equality Act following a Supreme Court ruling, which may impact its Stonewall Workplace Equality Index ranking, although Stonewall itself is changing its ranking system.

The committee noted the council's leadership role in promoting the Real Living Wage, but expressed disappointment at the level of renewal from accredited organisations. The council plans to focus on identifying further organisations to pay the Real Living Wage and will be seeking exemplar organisations before Christmas.

Budget Update 2026/27 and Month 4 Monitoring Report 2025/26

Councillor Chris Weaver, Cabinet Member for Finance, Modernisation and Performance, presented the budget update, indicating a slightly smaller estimated budget gap for 2026/27 of £38.4 million, down from £40.4 million. However, he cautioned that this figure is subject to change as confirmation of funding from Westminster and the Welsh Government is received. The Month 4 monitoring report for the current financial year (2025/26) projected an overspend of £3.8 million council-wide, with significant pressures in directorates such as Children's Services and Education, largely due to external placements and ALN requirements.

The committee sought assurances on the council's ability to draw down grant funding in a timely manner, with officers expressing confidence. Concerns were raised about the number of directorates forecasting overspends, but the Corporate Director of Resources, Chris Lee, emphasised that these monitoring reports are intended to prompt action and that the council has a track record of balancing its budget.

Children's Services was a particular focus, with questions raised about the impact of Welsh Government's policy to withdraw from the private commercial sector in relation to children's residential care. Officers stated it was too early to see savings from this policy, and that the council was working with Welsh Government on modelling this. The persistent issue of Children's Services budgets being out of control for decades was also discussed, with assurances given about improved information sharing and communication between finance and Children's Services. The Right Home, Right Place strategy and the challenges of creating capacity within Cardiff's boundaries were also discussed, with acknowledgement of the significant pressures remaining in this area.

The committee also discussed the council's preventative approach, with assurances that it would be maintained alongside the corporate plan. The link between the change programme and the medium-term financial plan was highlighted as crucial for service resilience. Councillor Garry Hunt noted that the council's financial situation felt starker than in previous years, with the possibility of some services no longer being offered if the budget gap continued to be challenging. Councillor Weaver reassured that this was an indication of the serious work needed and that the council would consult with the public on the future shape of local authority services.

The committee also raised questions about the shortfall in planning fee income, linked to a decline in major developments, and the potential impact of a zonal parking scheme on civil parking enforcement income. The council's prudent budgeting for employer National Insurance contributions was acknowledged as a positive.

Annual Property Plan 2025/26

Councillor Russell Goodway, Cabinet Member for Investment and Development, introduced the first Annual Property Plan prepared under the new Corporate Property Strategy 2025-2030. The plan outlines how the administration will manage and develop the estate over the next five years, aligning property with service, financial, and regeneration priorities. Key targets for 2025/26 include a £300,000 reduction in running costs, achieving 80% minimum statutory compliance, a 4% cut in carbon emissions, £5 million in capital receipts, and £2 million contribution to the general fund.

Councillor Calum Davies questioned the 80% statutory compliance target, suggesting it should be 100%. Officers clarified that 80% is a minimum, and the council regularly achieves mid-90% compliance. Concerns were also raised about whether the 4,000 council homes by 2030 target referred to completions or starts, with clarification that it referred to approvals. The long-term future of the Lansdowne Primary School building was discussed, with reassurance that ward councillors would be consulted before any decisions were made public.

Councillor Susan Elsmore declared an interest in Clive Lodge and Lansdowne Primary School. Questions were raised about the use of Clive Lodge by the HRA, with no further details available at that time. Councillor Jasmin Chowdhury questioned the implications of converting commercial buildings into residential properties for the future vision of those areas, with the cabinet member stating it was a pragmatic response to the housing crisis and a recognition that pre-COVID commercial activity levels might not return.

Councillor Garry Hunt raised concerns about the risks associated with leasehold arrangements with external organisations, particularly regarding maintenance and the potential for organisations to cease to exist. Officers explained that community leases are monitored more closely than commercial leases, and the council has intervention powers if buildings are not maintained.

Councillor Graham Hinchey raised concerns about potential conflicts between the sports pitch lease strategy and community use objectives, particularly regarding charging for access. Councillor Goodway agreed to raise this with his cabinet colleague and write to Councillor Hinchey.

The committee also discussed St David's Hall, with officers confirming that liability had transferred to the leaseholder and that the council had no idea when it would reopen.

Committee Business – Work Programme 2025/26

The committee reviewed the draft work programme for 2025/26, which uses a traffic light approach (red, amber, green) to prioritise topics. Councillor Hinchey suggested that areas of significant budget pressure, such as schools in deficit and Children's Services issues, be scrutinised in more detail. However, the Chair cautioned against duplicating work already undertaken by other committees, such as KIP's inquiry into school deficits. Nicola Newton, from Democratic Services, confirmed that future financial reports would include a what's changed section to illustrate trajectories more clearly.

The committee agreed to incorporate two recommendations into its letter to Cabinet: firstly, that the wording around the council homes target be more accurately and transparently worded to clarify whether it refers to completions or starts; and secondly, that the statutory compliance target be bolstered to 90% rather than the current 80% minimum, given the council's regular achievement of over 90% in other areas. Councillor Garry Hunt suggested that in the future, the committee should consider how success is measured for leased arrangements, beyond just contractual compliance. Councillor Goodway agreed to raise the issue of the sports pitch strategy potentially conflicting with community use objectives with his cabinet colleague and to write to Councillor Hinchey.

The meeting concluded with the committee agreeing to close the item on the budget update and move to the next agenda item.