Issue - meetings

Dewi Morgan, Head of Finance, and Sian Pugh, Assistant Head of Finance, to present the report.

1.     To approve the Growth Deal revenue budget for 2026/27.

2.     To note the funding contributions, including partner contributions, local government supplementary contributions and partner interest contributions.

The report was presented by the Assistant Head of Finance.

DECISION

1.     To note the Growth Deal revenue budget for 2026/27.

2.     To note the funding contributions, including partner contributions, local government supplementary contributions and partner interest contributions.

3.     To note the Growth Deal capital budget for 2026/27.

REASONS FOR THE DECISION

The Growth Deal required an annual budget to operate effectively within the funding available.

DISCUSSION

Members were reminded that the Growth Deal budget had already been approved as part of the 2026/27 Budget report which had been presented to the North Wales Corporate Joint Committee at its meeting on 23 January 2026.

It was confirmed that the revenue expenditure budget for 2026/27 was in the region of £2.95 million explaining that this money came from the following sources:

·       £470,000 partner contributions

·       £240,000 local authority supplementary contributions

·       £154,000 partner interest rates

·       £660,000 of the Growth Deal grant earmarked for the revenue element

·       £435,000 of the Growth Deal grant earmarked from the projects

·       £987,000 from the resource fund.

It was explained that there was no increase in partner contributions because a decrease in the employer's pension contribution rate from 2026/27 offset the out-turn adjustment for 2025/26, and the salary inflation estimate for 2026/27.

It was highlighted that changes in projects in the capital profile had led to an overall increase in the estimated cost of borrowing in line with the calculation made in the 2025/26 budget. It was noted that some partners were leading Growth Deal projects themselves and that the associated cost of borrowing had been added to their interest rates. However, it was noted that the contributions were within the threshold approved in the Delivery and Funding Agreement.

An up-to-date spending profile for each project within the Growth Deal had been shared for the period between 2021/22 and 2034/35. The profile for the 2.15% that was used to fund the revenue budget had also been shared. It was stressed that the profile was based on the timeline of the latest projects noting that it would be constantly reviewed as business cases were approved.

Gratitude was expressed for the report.