Agenda item

To approve increasing the budget for the development of the new Ysgol Treferthyr to £8,145,206.

To allow the transfer of £3,261,880 from the remaining budget of the Sustainable Learning Communities Programme envelope (Band B) in order to meet a significant increase in the costs of the project, accepting that it will lead to less budget available to realise other projects within Band B of the Gwynedd Sustainable Learning Communities Programme.

The report was submitted by Cllr Beca Brown. 

DECISION 

To approve increasing the budget for the development of the new Ysgol Treferthyr to £8,145,206. 

The transfer of £3,261,880 from the remaining budget of the Sustainable Learning Communities Programme envelope (Band B) in order to meet a significant increase in the costs of the project was approved, accepting that it would lead to less budget available to realise other projects within Band B of the Gwynedd Sustainable Learning Communities Programme. 

DISCUSSION 

The report was submitted, noting the steps that had been completed to date as part of the journey of building a new school in Cricieth, but there had been a significant increase in the school's construction costs. It was noted that the report detailed methods of addressing the financial deficit and sourcing additional funds. The steps undertaken since May 2021 were highlighted. It was noted that Welsh Government at that time had approved the funding of a total budget of £4.9 million for the construction of the School, and would contribute 65% towards the cost, with the Council contributing 35%. It was reported that the significant increase in construction costs over the past 18 months had led to an increase in the cost to just over £8 million due to factors such as the increasing cost of materials, energy and inflation. 

It was reported that a bid had been submitted to Welsh Government to increase the budget for funding the School, and the Cabinet was asked to approve this increase and transfer the budget from a band B project in order to address the significant increase in this project's costs. It was added that transferring the budget would have a consequential impact on the remaining band B budget, and less budget available to deliver those projects. 

Observations arising from the discussion 

·                  It was also highlighted that the existing School site was unsuitable. It was noted that the solution appeared to be straightforward, although there were implications to be considered.    

·                  Support was expressed for the request, and it was noted that other options were scarce.  

·                  A question was asked about the specific impacts on band B.  

·                  In response, it was noted that the impact would be £1.1 million, a 35% increase to the £3.2 million as the remainder had already been identified. This amount would be diverted from other schemes such as the Post-16 budget; this budget would be reduced in order to accommodate the additional funding for this scheme.  

·                  The request was welcomed on behalf of the children of Cricieth, and it was believed that the community would be extremely proud of the new school. An observation was made that Ysgol Eifionydd was in dire need of investment, and that the Council should pressurise Welsh Government to improve this School's resources.   

·                  In response, it was noted that Ysgol Eifionydd was part of the Condition and Suitability Scheme to upgrade and improve conditions and facilities, although it was not a significant amount. 

·                  It was believed, despite the increase in the School's construction costs, that the Council was getting value for money in Cricieth. The completion of the project was eagerly awaited, and it was believed that the investment would benefit the education of children within Cricieth catchment area for many years.