Agenda item

The report was noted.

Stephen Aldred Jones introduced the Quarterly financial Monitoring Q1 and Q2 24/25 as included in the agenda pack.

Members asked why City deal gives back £3 million and why isn’t it held centrally for projects as they progress.

Members noted significant slippages in the Homes as Power Stations project and inquired if officers are confident that house builders will proceed. They also asked about the potential for further issues.

Members asked if there was an over or underspend with Swansea Arena.

Officers confirmed a slight underspend with the arena project.

Members inquired about the status of the Innovation Precinct project and whether it is still proceeding.

Officers advised that they weren’t sure and that once the quarter three figures come back, they will have a great understanding.

Members asked if there was slippage elating to Supporting Innovation and Low Carbon Growth.

Members inquired if the digital infrastructure project has received additional private sector funding for further work.

Officers explained that for digital infrastructure, an annual review of the private sector is undertaken, and these figures are a year lag from the previous financial year. A private company do the review of the private sector and then they work out how much private sector money has been invested.

Peter Austin, Business Engagement Manager, confirmed additional private sector funding. Officers explained that the digital project is monitored with a one-year lag, as they need to complete the work before assessing its impact. This delay makes forecasting challenging and causes fluctuations between forecasts and year-end outcomes.

In relation to the £3 million interest question, members were advised that at the end of financial year for 23/24 there was £54.4 million of City deal grants sat in the account.

The grant money is due to partners, but it can’t be paid out to partners until they claimed it until they've spent the money. So that sat in the account generating £3 million in interest and this will be paid to each local authority based on a proportion of a city deal grant.

Officers used a hypothetical example of a £241 million city deal grant. If Swansea had a £24.1 million city deal grant, they would receive 10% of the £3 million interest.

Interim payments are also made through the year to help each local authority offset the additional rising costs of undertaking their city deal projects. Members were advised that it is down to each local authority how they use that interest.

Members asked if it is revenue a month or if it is capital?

Officers advised that it is revenue as it is interest.

In relation to SWITCH there has been an increase in construction costs and which needs a review of the cost plans however, the project is now progressing to REBA Stage 4 with planning due to be submitted in quarter three, quarter 24/25 Officers feel that overall they are still expected to or we'll be projecting to spend the full grant element and is just slippage, down to the AMPF land negotiations have slowed things down where they spend for the year.

The report was noted.