The Policy Review and Performance Scrutiny Committee met to scrutinise the Council's plans for a new core office building and an Enterprise Resource Planning (ERP) system. Key decisions were made regarding the development agreement for the new core office, including its size and associated costs, and an update was provided on the progress of the ERP system.

Core Office Development

The committee undertook pre-decision scrutiny of the proposal to enter into a Development Agreement for a new core office building. Councillor Russell Goodway, Cabinet Member for Investment and Development, presented the proposal, highlighting that the existing County Hall building has reached the end of its life and poses a significant risk of disruption or unplanned closure. He acknowledged the personal dilemma of demolishing a building he remembered being constructed but stressed the necessity of the decision based on current evidence. The new core office is intended to be a modern, green workspace, acting as a catalyst for further development in Cardiff Bay, similar to the role County Hall played nearly 40 years ago.

Neil Hanratty, Director of Economic Development, provided a detailed presentation on the project's timeline and financial implications. The project has been in development for four years, with decisions on the outline and full business cases made in January 2023 and October 2024, respectively. The plan is to deliver a new building by autumn 2028. A significant point of discussion was the increase in the estimated annual revenue budget for the new core office, rising from £5.4 million at the outline business case stage to approximately £10 million per annum at the current stage. This increase is attributed to several factors, including the decision to revert to a 120,000 sq ft building (from an initial reduction to 100,000 sq ft), increased capital costs for project elements beyond the building itself, and changes in financial modelling due to interest rate fluctuations.

Despite the cost increases, officials highlighted potential mitigations that could reduce the additional revenue budget requirement. These include income from leasing a floor of the new building, potential savings from the City Hall budget if a proposed lease agreement is finalised, and income from a ground-floor café and meeting room hire. The committee also discussed the agreement for lease with the Wales Millennium Centre (WMC) for the Capella Production Studio, clarifying that this is a separate project funded by WMC, with no direct cost to the Council.

Councillor Peter Wong, Chair of the Economy and Culture Scrutiny Committee, raised questions regarding the interface works with the new Arena and the definitive payment responsibilities for shared routes. Chris Barnett, Operational Manager for Major Projects, explained that the Arena's planning permissions necessitated a new service road, and the timing of the core office development meant the Council would bear some of these costs, though a temporary road has been agreed with Live Nation.

Concerns were also raised about the potential income from the café and rental spaces, which were identified as key risks. It was explained that while these income streams were removed from the guaranteed budget due to their unconfirmed nature, modelling had been done to estimate their potential value.

The committee also discussed the expected lifespan of the new core office, with a specification for a minimum 60-year structural envelope and a commitment to proper ongoing and life-cycle maintenance budgets. The potential for further cost increases due to economic turbulence was addressed by noting that the project is based on a development agreement with a pre-agreed fixed payment, meaning the contractor would not receive additional funds. The increase in building size to 120,000 sq ft was explained as being leased to an external organisation, with the Council retaining its 100,000 sq ft requirement.

The committee was asked to approve the updated Full Business Case, delegate authority to enter into the Development Agreement for the core office and the Agreement for Lease with WMC, manage budgets for Arena interface works, and develop final plans for the CAT B fit-out.

Enterprise Resource Planning (ERP) System

The committee received an update on the Enterprise Resource Planning (ERP) system. Councillor Chris Weaver, Cabinet Member for Finance and Modernisation, introduced the item, stating it was a significant and technical project crucial for the Council's operations. The panel included experts from technology and operational finance departments. Due to the confidential nature of the information, the committee resolved to exclude the public and press for this agenda item.

Next Meeting

The next meeting of the Policy Review and Performance Scrutiny Committee is scheduled for Wednesday, 15 April 2026, at 4:30 pm. A workshop on the Centre for Governance and Scrutiny (CFGS) is also scheduled for the following day, Tuesday, 17 March 2026, at 2 pm in Committee Room 1 at County Hall.