The Corporate Performance & Resources Scrutiny Committee met on Friday, 30 January 2026, to discuss the Revenue Budget Strategy Consultation for 2026/27 to 2028/29, the Five Year Capital Programme (Council Fund) for 2026/27 to 2030/31, and draft 2026/27 Business Plans. The Committee also reviewed the Revenue & Capital Budget Monitoring Report for 2025/26 and received updates on forthcoming items.

Revenue Budget Strategy Consultation 2026/27 to 2028/29

The Committee considered the draft Revenue Budget Strategy for 2026/27 to 2028/29, which highlighted significant financial pressures. The strategy projected a need for savings of £9.6 million in 2026/27, alongside a proposed 6.5% council tax increase. Despite these measures, a funding gap of £3.5 million remained for 2026/27. This shortfall is attributed to a combination of factors, including a provisional Welsh Government settlement below inflation, increased cost pressures, and a continued high level of demand in adult social care. The report also detailed departmental budget monitoring, with notable overspends in schools (£8.6m) and children's services (£3.7m) due to factors such as high-cost residential placements and increased demand. The Committee endorsed the efficiency savings proposals and the Charging Digest for the Chief Executive and Corporate Services departments.

Five Year Capital Programme (Council Fund) 2026/27 to 2030/31

The Committee reviewed the proposed five-year Capital Programme, which outlines a gross expenditure of £146.7 million. The programme aims to deliver key projects across various sectors, including schools (£25m), housing (£13m), social services (£15m), and economic development (£30m). A significant portion is allocated to place and built infrastructure (£53m). The report indicated that the programme was currently underfunded by £5.6m in the first year and £2.8m over the five-year period, necessitating further funding identification or adjustments to the scope of investments. Key projects include the new care home at Plas y Bryn, Disabled Facility Grants, and the relocation of Llanelli Market. The programme also incorporates commitments to decarbonisation measures and the maintenance of existing assets. The Committee endorsed the proposed Capital Programme.

2026/27 Business Plans (Draft)

The Committee examined draft divisional business/delivery plans for 2026/27 from various departments, including Law, Governance, and Civil Services; People, Digital, and Policy; Financial Services; Health-Related Capital Projects; Revenues and Financial Compliance; and Economic Development and Property. These plans outline key priorities, challenges, and actions for the upcoming financial year, aligning with the Council's Corporate Strategy and Well-being Objectives. The Committee received these plans, with specific discussions and queries raised regarding sickness absence data, the effectiveness of efficiency measures, and the financial implications of school budgets. The Assistant Chief Executive provided updates on the transformation programme, including the use of AI tools and the progress of digital modernisation.

Revenue & Capital Budget Monitoring Report 2025/26

The Committee received the Revenue and Capital Budget Monitoring Report for the period ending 31st October 2025. The report indicated a forecasted departmental overspend of £13.2 million, including school budgets, and a net revenue budget overspend of £10.7 million. Key contributing factors included schools setting budgets above funding levels, increased demand and complexity in adult social care, and overspends in areas where budget reductions were yet to be fully implemented. The capital programme showed a forecasted net spend of £98,218k against a working budget of £133,812k, resulting in a variance of -£35,594k. Several new projects and virements were noted, including grant awards for environmental infrastructure and leisure facilities. The Committee received the report.

2025/26 End of Quarter 2 Performance Report

The Committee reviewed the Quarter 2 Performance Monitoring Report, which detailed progress on actions and measures linked to the Corporate Strategy and Well-being Objectives. The report indicated that while many areas were on target, some departments, particularly in the Chief Executive's and Education & Leisure divisions, were experiencing overspends. Specific concerns were raised regarding high sickness absence rates in certain departments, and the Committee requested that relevant Heads of Service be invited to address these issues. The Committee also discussed the challenges of school budget overspends and the financial pressures faced by the authority. The report was received.

Forthcoming Items

The Committee noted the list of forthcoming items for its next meeting, scheduled for 30th January 2026. It was also noted that the date of the next meeting might change due to the pre-election period. The Committee received the list of forthcoming items.

Minutes of Previous Meeting

The Committee unanimously resolved to sign the minutes of the meeting held on 17th December 2025 as a correct record.