The Economy and Culture Scrutiny Committee met to discuss the draft Corporate Plan 2026-2029 and budgetary proposals for 2026/27. Key decisions included the approval of a 3.9% council tax increase, the allocation of one-off funds to highways and street cleansing, and the adoption of a new regeneration strategy.

Corporate Plan and Budgetary Proposals

The committee reviewed the draft Corporate Plan and budget proposals for the upcoming financial year. Councillor Chris Weaver, Cabinet Member for Finance, Modernisation and Performance, presented the proposals, highlighting that the final government settlement was slightly better than anticipated, providing a 4.2% increase in funding. Despite this, a budget gap of £22.6 million remained, which the council planned to close through £40 million in back-office and change programme savings, alongside a proposed 3.9% council tax increase. This increase equates to £1.15 per week for a Band D property and is expected to be one of the lower council tax increases in Wales.

The main areas of increased spend within the council are education, children's services, and adult services, reflecting the top priorities identified in the Ask Cardiff survey. A budget consultation received 2,000 responses, with a notable shift towards favouring lower council tax increases, likely due to ongoing cost of living challenges. The council has allocated £4.5 million of one-off funding for stronger, fairer, and greener priorities, with £2 million designated for highways and £1.4 million for street cleansing. No cuts to delegated school budgets are proposed to close the corporate budget gap.

Ian Allwood, Head of Finance, provided a detailed presentation on the financial plans, including the medium-term financial plan, capital strategy, and treasury strategy. He explained the impact of the shift from the Shared Prosperity Fund to a three-year local growth fund, noting a revenue shortfall that the budget strategy aims to mitigate. The available resources are projected at £967.259 million, with pressures from pay and price inflation, commitments, and demand on services totalling £56.247 million. The proposed 3.9% council tax increase is expected to generate £9.394 million. Savings of £11.29 million from efficiency and £4.892 million from the change programme are planned.

Discussions also touched upon the financial position of schools, with a projected deficit of £2.4 million for the next year, a reduction from previous forecasts. Councillor Weaver emphasised that the 3.9% council tax increase strikes a balance between delivering a sustainable budget and acknowledging the cost of living pressures faced by residents. The council is not using reserves to balance the budget this year, a conscious decision to build medium-term resilience.

Real Living Wage

Councillor Chris Weaver addressed concerns about the impact of promoting the Real Living Wage on employment levels. He explained that the Living Wage City Partnership is reviewing its action plan and uses analysis from the Real Living Wage Foundation to identify sectors best placed to adopt the wage. While acknowledging the challenges businesses face, he highlighted evidence suggesting that paying the Real Living Wage can improve staff retention, reduce costs, and boost morale.

Culture, Sport, and Parks Portfolio

Councillor Burke, Cabinet Member for Culture, Sport and Parks, presented proposals for her portfolio, highlighting that parks services have been largely shielded from significant cuts. The portfolio has contributed £288,000 in savings, primarily through income generation and some cost reductions. Savings of £211,000 have been made in coordinated sports, with £167,000 from income. Parks have generated £77,000 in savings, including £24,000 from new income streams and £20,000 from film use and external funding.

Neil Hanratty, Director of Economic Development, outlined key steps for the portfolio, including implementing the physical activity and sport strategy, developing a parks and green spaces strategy, and working towards increasing the tree canopy to 25% by 2030. In culture and major events, plans include opening St David's Hall by Q4 2026/27, adopting a new tourism and events strategy, and attracting major international events such as the Tour de France and the Euros. The committee discussed the capital costs associated with the New Theatre repairs, clarifying that the council retains responsibility for the exterior and roof, while the tenant is responsible for internal repairs. Questions were also raised about the savings generated from reducing office accommodation at Queen Alexandra House.

Leader's Portfolio

The Leader's portfolio focuses on external partnerships. Key steps include retaining commitment to work with the Cardiff Capital Region to progress projects, building on the Cardiff Central enhancement project and investment in businesses through the City Deal. The council is also in dialogue with other cities in South Wales and the South West of England to maintain a voice in Whitehall decision-making.

Investment zones were a significant topic, with Cardiff proposing two sites: the Cardiff Parkway site and City Centre South. These sites are being considered for rates retention, with a 50% retention over 25 years planned, which the council has argued should be 100% to match England's approach. The council's contribution to the South Wales Corporate Joint Committee was also discussed, with Cardiff contributing 24% of the overall funding, which unlocks infrastructure investment. The winding up of the Western Gateway partnership was noted, but its intellectual property, such as the Seven Estuary Tidal Commission and the rail plan, is being carried forward.

Leader's Portfolio - Investment Zones

Councillor Hugh Thomas, Leader of the Council, discussed the proposed investment zones in Cardiff. Two sites have been proposed: the Cardiff Parkway site, envisioned as an out-of-town science campus, and City Centre South, a regeneration area south of the railway station. These zones are intended to capture significant value from retained business rates. The council has progressed through the gateway process and awaits an announcement from the new UK government. The business rates retention model for Wales is set at 50% over 25 years, with the intention of using this income to invest in infrastructure. The council has argued for 100% retention, as seen in England, to maximise inward investment.

Leader's Portfolio - Cardiff Capital Region

The council's funding to the South Wales Corporate Joint Committee (CJC) was discussed. Cardiff Council contributes £1 million this year, £1.7 million next year, and £6.6 million thereafter. This represents 24% of the total contribution to the CJC. The funding model is designed to invest as an equity partner or provide loans, creating an evergreen fund. This approach is unlocking infrastructure investment, such as the Cardiff Central Station project.

Leader's Portfolio - Western Gateway Partnership

The dissolution of the Western Gateway partnership was noted. While disappointed by the decision not to continue funding, the council highlighted that its intellectual property, including work on the Seven Estuary Tidal Commission and the rail plan, is being carried forward by other regional bodies. There is no expectation of new funding for the M4 corridor cities grouping.

Councillor Goodway's Portfolio

Councillor Russell Goodway, Cabinet Member for Investment and Development, presented proposals for his portfolio, noting that the revenue budget is not significant. Savings of £115,000 have been made through additional income generation and minor staffing changes, with no significant impact on service delivery. Key steps include implementing a new regeneration strategy for district and local centres, progressing regeneration plans for Ely and Caerau, and enhancing the city centre as a location for business and investment. Plans for the canal quarter regeneration and the completion of the indoor arena at Cardiff Bay are also underway.

The committee discussed the capital line for the Red Dragon Centre, clarifying that the expenditure relates to cash flow provisions during redevelopment rather than repairs. The indoor arena and car park are on schedule. Conversations with Associated British Ports regarding land use are ongoing. The definition of the city centre for the purpose of the Business Improvement District includes areas south of the train station, and consultation is underway regarding its expansion to Cardiff Bay. Footfall monitors currently only capture data north of the city centre.

Councillor Bridgeman's Portfolio

Councillor Bridgeman, Cabinet Member for Community Hubs and Regeneration, highlighted the continued success of hubs and libraries, with 1.6 million visits and a 98% satisfaction rate. New facilities are being opened, including a community space in the TE Gros community living scheme in Riverside. The council is investing in local communities through its regeneration strategy, focusing on inclusive, sustainable, and community-rooted plans. The strategy will guide future investment in neighbourhoods over the next five years, with a commitment to continuing regeneration programmes and securing further funding.

Rebecca Hooper, OM for Neighbourhood Regeneration, detailed the revised steps for the hubs and library strategy, including family history sessions and reader development. Key performance indicators include maintaining 2 million in-person visits to libraries and hubs and reducing the loan period for popular digital books to two weeks due to increased costs. The strategy identifies three priority neighbourhoods for placemaking plans: Adamsdown and Splott, Butetown and Cardiff Bay, and Plasnewydd. The council is also seeking Welsh Government funding for the Transforming Towns programme and plans to launch another round of the Neighbourhood Renewal Schemes programme.

The committee discussed the evening hire charges for hubs, with a proposed rate of £100 base charge plus £60 per hour, with hire available until approximately 9 pm. The reduction in the loan period for digital books was debated, with a commitment to consider the reading speed of individuals. The regeneration strategy's focus on placemaking plans for priority areas was explained, with a multi-agency approach to address both quick wins and long-term aspirations. The council aims to align resources to benefit district and local centres and is reviewing the criteria for the Neighbourhood Renewal Scheme to align with the regeneration strategy. The potential for library services within new community and well-being hubs was confirmed. The increase in the cost of digital books was attributed to providers raising prices.

Way Forward

The committee noted the points raised during the discussions. Specific requests for clarification were made regarding the use of the Financial Resilience Mechanism (FRM) for the waste department, the allocation of FRM funds for parks and regeneration to allotments, and the potential for moving resources within the parks service. Further clarity was also sought on the revenue for Queen Alexandra House, the rationale for no increase in filming revenue, the achievability of income targets, and the capital line for Roath Park Dam, specifically regarding the inclusion of lake desilting. Confirmation was also requested regarding the certificate costs for the Cardiff Riding School and the future costs if the school is disposed of. The council's approach to investment zones and business rates retention was noted, as was the council's contribution to the Cardiff Capital Region. The cash flow issues for the Red Dragon Centre, the schedule for the indoor arena, ongoing conversations with Associated British Ports, and the definition of the city centre for footfall monitoring were also noted. Finally, the committee noted the proposed changes to library loan periods, the scope for library services in new hubs, and the reasons for increased digital book costs.