Agenda item

Draft Budget 2025-2026

Decision:

Following scrutiny, the report was noted.

Minutes:

Members considered the report as circulated within the agenda pack.

 

Officers advised that there is a statutory obligation to set the budget before the end of January and that the constituent authorities must be notified of the appropriate levy.

 

There were two options presented for members to consider. The first option outlined a continuity budget, which is a similar position that has been agreed to over the last couple of years. This would present a bit of a standstill in terms of progress and would involve doing the minimum amount of work. The second option is to expand on work streams to enable work to progress and move forward. It was confirmed that the transport workstream has been supported through Welsh Government during the last two years, which has allowed the Regional Transport Plan to move forward.

 

Officers noted the current budget pressures on the constituent authorities and recognised that the authorities are trying to reduce current spend.

 

In terms of the two budget options presented. The first budget is based upon feedback from the work streams and what officers feel is required to deliver on the various elements across the four disciplines.

 

With particular reference to strategic planning, there is a desire from officers that Welsh Government should support this work stream as they have supported the strategic development plan in previous years. The cost of delivering the full work stream is in the region of £600,000. Therefore, officers have concluded that there should be further pursuance and negotiation with Welsh Government before it can be delivered. It was also noted that when the CJC was set up there was an obligation set out for the national parks to contribute towards any planning functions that go on.

 

Officers advised that a three-year plan has been suggested, where there is a contribution from reserves of £153,000 in year 1, £167,000 in year 2 and £182,000 in year three. This will contribute towards managing inflationary items and continuing to hold the levy the same. This will provide an estimated £460,000 in reserves at the end of the three years. This approach is also prudent, in terms of the pressure that may be put on constituent authorities if a higher contribution from reserves is taken in year 1 and then the levy on constituent authorities increases in years 2 and 3.

 

Members queried how confident officers are in terms of the accuracy of the budget, in particular the forecasting of those items that have been consistently underspent in previous years?

 

Officers outlined the starting point for the budget of the CJC and advised that currently there is no clear direction with regards to how active it is going to be and how much progress will take place. The CJC is continually developing and officers need to provide support to ensure that the CJC can deliver items when required and that this is not delayed due to lack of budget provision. Therefore, assumptions were made in previous years with regards to what was required. Further, officers advised that they are not sure that Welsh Government will provide the necessary funding for items to progress as required. If funding is not provided, then strategic planning could require a substantial contribution from the CJC. Whilst officers recognised that there could again be an underspend at the end of the year, the budgets agreed and now recommended could set the CJC in a better position. Further, the budgets have allowed for the levy to be held at the same levy as previous years as opposed to increasing it.

 

Some members expressed their discomfort with the accuracy of the budget, and iterated that if funding is not required for something, then it should not be placed within the budget. Further, some members indicated that the CJC should be considering reducing the levy on local authorities, given that the reserve is 135% of the budget. Officers advised that in terms of managing budgets there is far more sense in being prudent and having incremental movements than significant drifts within the levy.

 

Members noted that when legislation passed by Welsh Government, then the CJC must respond to it and act accordingly. However, it was agreed that the burden this placed on local authorities is a challenge and Welsh Government should understand that Council’s are not able to carry out everything that is required, with the current level of funding available.

 

Officers advised that they would advise the members of the Joint Committee of the comments received by the scrutiny committee on the proposed budget.

 

Following scrutiny, the report was noted.

Supporting documents: