The Corporate Performance & Resources Scrutiny Committee of Carmarthenshire Council met on Wednesday 5 November 2025 to review a range of financial and performance reports. Key discussions included the significant projected overspend on revenue budgets for 2025/26, the final outturn for 2024/25, and the progress of the Council's Annual Report for 2024/25. The committee also examined quarterly treasury management and prudential indicator reports, the proposed Generative Artificial Intelligence Policy, and the Connecting Carmarthenshire report on digital connectivity. Additionally, the committee reviewed the Council's Annual Complaints Report for 2024-25, the minutes of the Carmarthenshire Public Services Board meetings from May and July 2025, and received explanations for the non-submission of certain scrutiny reports. Finally, the committee noted forthcoming items for future meetings and approved the minutes from a previous meeting.

Revenue and Capital Budget Monitoring Report 2025/26

The committee received an update on the revenue and capital budget monitoring for the 2025/26 financial year. The report indicated a projected end-of-year overspend of £11.4 million on the Council's net revenue budget, with departmental overspends totalling £12.9 million, including school budgets. Councillor A. Evans declared a personal interest in this item due to a family member being on long-term sickness, which impacts one of the targets.

Key concerns raised included the reasons for vacancy factors and staffing efficiencies, with officers explaining that these were overseen by the Corporate Management Team and efforts were being made to release capacity. The deficit in school budgets was highlighted as a major corporate risk, with ongoing discussions about school footprints and efficiency measures. The Cabinet Member for Resources acknowledged the challenges and stated that officers were working closely with schools to identify possible solutions.

Regarding card payments and bank charges, the Head of Financial Services noted a slight reduction in bank charges but indicated that the overspend would be reviewed during the next budget setting process. The committee welcomed the underspend within their remit but expressed concern about schools not implementing efficiencies, which placed additional pressure on the Council's overall budget. The Chair requested a full response from the Leader on ongoing work to address these issues.

Revenue Budget Outturn Report 2024/25

The committee reviewed the Council's 2024/25 Corporate Budget Outturn Report. The report indicated an overall net underspend of £3.251 million for the authority, which has been transferred to general balances. However, departmental overspends were noted, including £7.0 million in schools' delegated budgets, £4.0 million in Children's Services primarily due to high-cost residential placements, and £3.7 million in other service areas where budget reductions had not been fully implemented. Adult social care also showed persistent overspends.

Councillor A. Evans declared a personal interest in this item due to a family member being on long-term sickness.

The committee expressed concern about the schools' budget deficit and the lack of implemented efficiencies in some schools. The Leader assured the committee that this was a major corporate risk and that significant work was ongoing to address it, with discussions about school structures and potential funding gaps for the short to medium term.

The Council's Annual Report 2024/25

The committee considered the draft Annual Report for 2024/25, which aimed to meet the requirements of the Well-being of Future Generations (Wales) Act 2015 and the Local Government and Elections Act (Wales) 2021. The report was structured around the Council's four well-being objectives and thematic and service priorities. Officers provided an overview of progress, and the committee expressed gratitude for the comprehensive report. A request was made for additional graphics explaining the Council's budget, which officers agreed to consider for the final report.

2025/26 End of Quarter 1 Performance Report

The committee reviewed the performance report for the first quarter of the 2025/26 financial year. Councillor A. Evans declared a personal interest in relation to sickness absence data due to a family member's long-term sickness.

Key points of discussion included:

• Sickness Absence: Concerns were raised about areas showing higher absence rates. Officers confirmed a deep dive analysis was underway, with findings to be discussed at Corporate Management Team and a development session scheduled for the committee.
• Safeguarding Training: The Assistant Chief Executive acknowledged that progress on safeguarding training for school governors via the 'Thinqi' platform was not as advanced as hoped but expected improvements with the platform's full implementation.
• Financial Support: The Head of Revenues and Financial Compliance confirmed proactive measures to assist families with bills and benefit claims, including signposting to external support.
• Targets: The Assistant Chief Executive agreed to review the relevance of specific targets with the relevant teams.

The committee received the report and unanimously resolved to add a development session on sickness trends to its forward work programme.

Quarterly Treasury Management and Prudential Indicator Report (1 April 2025 - 30 June 2025)

The committee received an update on treasury management activities for the first quarter of the 2025/26 financial year. The report indicated that the Council had not breached any prudential indicators. Investments during the period yielded an average rate of 4.45%, with gross interest earned on investments amounting to £1.42 million. No new loans were borrowed, and the LOBO loan of £3 million was repaid without penalty. The report confirmed compliance with the Treasury Management Policy and Strategy.

Annual Treasury Management and Prudential Indicator Report 2024/2025

The committee reviewed the annual report on treasury management and prudential indicators for the 2024/25 financial year. The report detailed investments, borrowing, security, liquidity, and yield, as well as prudential indicators for leasing and rescheduling. The Council's investments totalled £96.5 million at the end of March 2025, and gross borrowing stood at £415.83 million. The report confirmed that the Council had not breached any prudential indicators during the year and that interest paid on loans was within budget.

Generative Artificial Intelligence Policy

The committee considered the draft Generative Artificial Intelligence (GenAI) Policy. The policy aims to provide a strategic framework for the responsible and secure use of GenAI tools across the organisation, ensuring ethical standards, data protection, and legal compliance. Key principles include trust, transparency, risk management, equity, and inclusion. The policy will be maintained by Digital Services and is subject to regular review. The committee received the report.

Connecting Carmarthenshire Report

An update was provided on the progress of digital connectivity improvements across Carmarthenshire, highlighting significant investments in full fibre broadband and mobile coverage. The report detailed achievements in connecting premises, particularly in rural areas, and acknowledged ongoing challenges. The role of Digital Champions in facilitating these improvements was emphasized, with the authority receiving national recognition for its approach. Future plans include continued collaboration with government and the private sector to address remaining connectivity gaps and leverage new technologies. The committee received the report.

Council Complaints Annual Report 2024-25

The committee reviewed the Council's Annual Complaints Report for 2024-25. The report detailed corporate and social services complaints, noting a slight decrease in corporate complaints received compared to the previous year, but an increase in complexity. Stage 1 complaints were largely resolved within timescales, but Stage 2 investigations, particularly those involving social services, experienced delays due to complexity and staffing issues. The report also highlighted a significant increase in the number of social services complaints received. The committee expressed concerns about the delays in Stage 2 responses and the need for improved data analysis. The Assistant Chief Executive acknowledged these challenges and outlined plans for a new Complaints Management Officer role and improved data management through a Power BI dashboard. The committee received the report.

Carmarthenshire Public Services Board (PSB) Minutes – May and July 2025

The committee received the minutes from the Carmarthenshire Public Services Board meetings held on 20 May and 15 July 2025. The minutes covered discussions on the Future Generations Report 2025, the Social Model for Health and Well-being, and the Climate Change Risk Assessment. Key actions included collating activity on recommendations from the Future Generations Report, progressing climate change risk assessments, and agreeing to discuss PSB-specific recommendations at future meetings. The committee received the minutes.

Explanation for Non-Submission of Scrutiny Report

The committee received explanations for the non-submission of several scrutiny reports, including the Treasury Management and Prudential Indicator Report (annual), the Public Generative AI Policy, and the Better Broadband update. These reports were deferred to the next meeting on 5 November 2025. The committee noted the explanations.

Forthcoming Items

The committee noted the list of forthcoming items for its next meeting on 17 December 2025, which included the PSB minutes, Sickness Absence Monitoring Report, Revenue and Capital Budget Monitoring Report, Transformation Programme update, and the Treasury Management and Prudential Indicator Report.

To Sign as a Correct Record the Minutes of the Meeting of the Committee Held on 10th July 2025

The minutes of the previous meeting held on 10th July 2025 were approved and signed as a correct record.