The Policy Review and Performance Scrutiny Committee met to discuss the Panel Performance Assessment, the Annual Wellbeing Report, the budget update, and the annual property plan. Councillors scrutinised the council's performance, financial strategy, and property management, and agreed to send letters to the cabinet with their observations and recommendations.

Panel Performance Assessment and Annual Wellbeing Report

The committee reviewed the Panel Performance Assessment (PPA) report, which found Cardiff Council to be a well-run authority with strong leadership and sound governance. The PPA made three recommendations, including a review of scrutiny arrangements, a renewed vision for economic development, and closer alignment between the change programme, medium-term financial planning, and workforce strategy.

Key discussion points included:

• Scrutiny Arrangements: Councillors discussed the recommendation to shift the focus of scrutiny away from pre-decision scrutiny and towards more thematic reviews. Councillor Hugh Thomas, Leader of the Council, clarified that the recommendation aimed to address an over-focus on pre-decision scrutiny at the expense of more in-depth policy work. Councillor Ash Edwards supported the recommendation, noting a perceived decline in scrutiny engagement.
• Workforce Diversity: The committee discussed the need to improve workforce diversity, particularly at senior management levels. Councillor Thomas said the council was putting in place a number of building blocks, including support for middle managers from ethnic minority groups.
• Economic Growth: The committee considered the recommendation to link economic growth more closely to the council's Stronger, Fairer, Greener ambitions. Councillor Thomas said the council's economic strategy needed to be renewed and refreshed.
• Sickness Absence: Councillors noted that sickness absence rates remained above target. Councillor Graham Hinchey asked about support for managers in dealing with rising sickness and absence. Councillor Chris Reaver, Cabinet Member for Finance, Modernisation and Performance, said HR provided support to service areas and senior management monitored sickness absence figures.
• Recycling and Street Cleanliness: Councillor Susan Elsmore raised concerns about a fall in street cleanliness, despite Cardiff being a leading recycling city. Councillor Thomas acknowledged a deterioration in the street scene and said the council was open to intelligence from Keep Wales Tidy and others on how to drive behaviour change.
• Hub Website Page Views: Councillor Calum Davies, Chair of the Committee, asked about a drop in page views on the Hub's website. Officers said this was due to website maintenance and updated cookie policies.
• Stonewall Workplace Equality Index: Councillor Davies asked whether a recent Supreme Court ruling would affect the council's place in the Stonewall Workplace Equality Index. Councillor Reaver said Stonewall was changing its workplace index anyway.

The committee agreed to send a letter to the cabinet, recommending that potential slippage in the workload be identified early in the process, and that the council's commitment to building 4,000 council homes by 2030 should be more accurately and transparently worded.

Budget Update and Month 4 Monitoring Report

The committee then discussed the budget update for 2026/27 and the month 4 monitoring report for 2025/26. Councillor Reaver said the estimated budget gap for next year was marginally smaller, but still significant. The month 4 report projected an overspend of £3.8 million.

Key discussion points included:

• Directorate Overspends: The committee noted significant overspends in certain directorates, including children's services and education.
• Savings Performance: The committee discussed the importance of delivering savings targets.
• School Budgets: Councillor Reaver said the council was assuming a budget pressure for schools of over £14 million for next year, which would be an increase to school budgets of 4.3%.
• Inflation Forecasts: Councillor Hunt asked whose inflation forecasts were being used. Officers said they were using forecasts from the Office for Budget Responsibility¹ and the Bank of England.
• Capital Programme: Councillor Bernie Bowen-Thomson asked for assurances regarding the realisation of capital developments and grant timing.
• Children's Services: Councillor Elsmore asked whether it was too early to see the impact of Welsh government's move away from the private commercial sector in children's residential care.
• Preventative Services: Councillor Jasmin Chowdhury asked how confident the council was that it would not lose sight of preventative and equitable public services.
• Potential Loss of Services: Councillor Davies noted that Councillor Reaver had said it was very likely that the council would no longer be able to offer some services.
• Planning Fee Income: Councillor Davies noted a significant shortfall in planning fee income, reflecting a decline in major developments.
• Zonal Parking Scheme: Councillor Davies asked how the zonal parking scheme was expected to impact civil parking enforcement income.
• National Insurance Contributions: Councillor Davies noted that the council had budgeted correctly for employer national insurance contributions.

The committee agreed to send a letter to the cabinet, requesting clarity on a super major planning application, and on the impact of the zonal parking scheme on civil parking enforcement income.

Annual Property Plan

The committee then scrutinised the annual property plan for 2025/26. Councillor Russell Goodway, Cabinet Member for Investment and Development, introduced the plan, which sets out how the council will manage and develop its estate over the next five years.

Key discussion points included:

• Statutory Compliance: Councillor Davies questioned whether having a target of 80% for statutory compliance was a way of saying it was okay to only comply with 80% of legal requirements. Officers said 80% was a minimum and they aimed for 100%.
• Council Homes Target: Councillor Davies asked whether the target of building 4,000 council homes by 2030 meant completions or housing starts. Officers said it meant approvals.
• Lansdowne Primary School: Councillor Davies asked about the long-term future of Lansdowne Primary School. Councillor Goodway said it was a matter being considered in cabinet.
• Clive Lodge: Councillor Elsmore declared an interest and asked for further details about the acquisition of Clive Lodge.
• Leasehold Arrangements: Councillor Hunt asked about the risk of external organisations with leasehold arrangements changing or no longer being interested in the facility.
• Commercial Buildings: Councillor Davies asked whether converting commercial buildings into residential properties was an admission that the council had given up on those places being viable for commerce.
• Planning Applications: Councillor Goodway said the length of time it takes to get planning decisions through in Cardiff was a barrier to development.
• Community Asset Transfers: Councillor Hinchey said he was supported by the work of officers in terms of community asset transfer.
• St David's Hall: Councillor Davies asked when St David's Hall would be open to the public. Councillor Goodway said that question should be put to the new operator.

The committee agreed to send a letter to the cabinet, recommending that the council's commitment to building 4,000 council homes by 2030 should be more accurately worded, and that the statutory compliance target should be bolstered up to 90%. The committee also asked whether the council has a set of performance metrics within its leasing arrangements.

Work Programme

Finally, the committee discussed its work programme for the remainder of the municipal year. Councillor Hinchey suggested scrutinising education and children's services in more detail. Councillor Davies said the committee needed to be mindful of not stepping on the toes of other committees.