Agenda item

Officers presented Members with the South West Wales Corporate Joint Committee (SWWCJC) draft budget for the 2025/26 financial year, which included the proposed levy charge to the constituent authorities.

The Committee was informed that the constituent authorities must be notified of the levy for the upcoming financial year by 31 January 2025. It was mentioned that discussions had already started to take place with each of the Local Authorities and Elected Members regarding the requirements of the SWWCJC budget setting process.

The circulated report set out three different options (Option 1, Option 2 and Option 2B) in terms of budget setting for the SWWCJC. It was highlighted that the options were quite consistent with previous years; setting a continuity budget or increasing the workflow, through the budget, to try and achieve the objectives of the SWWCJC. Officers added that there was still work to be undertaken in terms of understanding the level of activity of some of the functions and workstreams.

Officers clarified the detail of the three different options as follows:

·       Option 1 – Continuity budget.

·       Option 2 – Requested budget.

·       Option 2B – Requested budget with the use of reserves.

It was stated that Officers were recommending Option 2B, which was set out in Appendix C of the circulated report. Noting that the discharge of reserves was proposed to be carried out over a planned period of three years; this was to help prevent the need to request significantly increased levies in the future, recognising the challenges that the constituent authorities face individually in terms of their budget setting process.

Additional detail regarding Option 2B was provided to the Committee, highlighting that this option accommodated the requests that had been received from three out of the four workstreams; Appendix C detailed the expectations that could be delivered through the budget for Transport, Energy and Economic Development.

Further to the above, it was explained that there were currently some challenges around defining the work and expectations of the Planning workstream; therefore, the funding could not be provided in the same context. However, it was noted that the leads for this workstream had previously confirmed that this was an acceptable position, and they were working with Welsh Government to identify further funding and clarity on delivering the programme of work. 

A discussion took place in regard to the overall budget position of the SWWCJC, if Option 2B was to be approved. It was noted that the draft budget for 2025/26 was demonstrating an estimated expenditure of £710.3k. Officers explained that they had looked at options to try and standardise the levy charge on the constituent authorities, to keep it the same as what was charged in the 2024/25 financial year; if this was to be considered, Officers will be required to utilise the reserves to fund that. As previously, mentioned Officers would be seeking to do this over a three-year period as follows:

·       £153.5k in 2025/26 financial year.

·       £167.7k in 2026/27 financial year.

·       £182.2k in 2027/28 financial year.

It was anticipated that the reserves would be in the region of £964k at the end of the 2024/25 financial year; therefore, if the reserves were to be utilised over a three-year period, it would leave a balance of £460.8k in the reserve pot by the end of that period.

In addition to the above, it was proposed that a small levy be charged to the two National Park Authorities in the 2025/26 financial year; as the Planning workstream develops, there would be a responsibility on those National Park Authorities to contribute to the Planning function. Officers stated that the proposed charge for the 2025/26 financial year was under £1k in total; however, this would increase over time as the cost of delivering this workstream increases. It was noted that bringing in this principle for the upcoming financial year was critical in the overall position, especially as it was something that the SWWCJC had delayed doing the last two years when setting the levy charge.

In concluding the projection and recommended proposal, Officers stated that Option 2B would enable work to be delivered for the workstreams, whilst keeping the levy charge the same for the constituent authorities for the next three years (with the addition of the levy charge to the National Park Authorities); monies from reserves would be utilised over a steady period which would allow the SWWCJC flexibility to develop as required.

The Committee was informed that the proposals contained within the circulated report were presented to the SWWCJC Overview and Scrutiny Sub Committee; Officers provided an overview of the feedback that was received from the membership of that Committee. It was highlighted that concerns were raised, from some Members, in regard to the levy charge; they discussed reducing the levy due to the pressures on each of the constituent authorities in terms of setting their own budgets. It was explained that their views were noted, however there weren’t any formal recommendations proposed from the Overview and Scrutiny Committee.

In terms of the response to the concerns raised, the Chief Finance Officer (Section 151 Officer) for the SWWCJC highlighted the reasons for proposing to keep the levy the same; particularly as the SWWCJC was continuing to develop and increase its capacity. Officers views was that it would be sensible and reasonable to set the levy the same as previous years, and to carry a certain amount of contingency and flexibility in the budget; especially as there were still unknown factors moving forward with developing the SWWCJC and delivering its objectives.

Leaders welcomed the feedback from the Overview and Scrutiny Committee, especially acknowledgement of the pressures that Local Authorities were facing in terms of budget setting processes. However, the overall consensus was to agree Option 2B in order to ensure that the SWWCJC had the funds to allow the workstreams to develop accordingly and to ensure there was a suitable level of reserves for future demands.

It was recognised that Brecon Beacons National Park Authority formed part of three different Corporate Joint Committees; it would be important to be mindful of this when setting the levy in the future. 

RESOLVED:

·       That the budget for the South West Wales Corporate Joint Committee, for the 2025/26 financial year, be set and approved at £710.3k (as detailed in Appendix C of the circulated report (Requested Budget with the use of reserves)).

·       That the Levy Charge, based on population to the constituent authorities, be approved as follows:

Local Authority Levy 2025/26:
City and County of Swansea Council (Levy) - £191,188
Carmarthenshire County Council (Levy) - £151,281
Neath Port Talbot CBC (Levy) - £114,094
Pembrokeshire County Council (Levy) - £99,414
Brecon Beacons NPA (Levy) - £147
Pembrokeshire Coast NPA (Levy) - £672

Total = £556,797