Agenda item

Dewi A. Morgan, Head of Finance (CJC’s Statutory Finance Officer) and Sian Pugh, Assistant Head of Finance to present report.

North Wales Corporate Joint Committee

·       To approve the budget for 2026/27 as presented in Appendix 1.

·       To approve the levy on the constituent authorities as noted in Appendix 1

Growth Deal

·       To approve the Growth Deal revenue budget for 2026/27 as presented in Appendix 2.

·       To approve the funding contributions to include the partner contributions, local authorities’ supplementary contributions and partner interest contributions. 

·       To approve the Growth Deal’s capital budget for 2026/27 as presented in Appendix 3.

The report was presented by Sian Pugh (Assistant Head of Finance – Cyngor Gwynedd)

RESOLVED

North Wales Corporate Joint Committee

·       To approve the budget for 2026/27 as presented in Appendix 1.

·       To approve the levy on the constituent authorities as noted in Appendix 1

Growth Deal

·       To approve the Growth Deal revenue budget for 2026/27 as presented in Appendix 2.

·       To approve the funding contributions which include the partner contributions, local authorities’ supplementary contributions and partner interest contributions. 

·       To approve the Growth Deal’s capital budget for 2026/27 as presented in Appendix 3.⁠

DISCUSSION

The report was presented highlighting that it was a statutory requirement for the CJC to approve its budget, and the allocation of the levy to the Councils and the Eryri National Park Authority by 31 January. It was noted that the total expenditure budget for 2026/27as £2.16m and it was highlighted how it was being funded.

It was explained that the levy, which is allocated to the constituent authorities based on  the population, had increased by £112,700 for 2026/27 due to inflation of 3.5% and the additional costs in increasing the capacity of the Monitoring Officer and the Section 151 Officer. It was noted that to further support governance arrangements across the CJC, a recent review indicated the need for a full-time Monitoring Officer and a Section 151 Officer for 3 days a week as we move forward.

It was highlighted that after using the contribution of almost £625krom the reserves for 2026/27, a balance of approximately £800k would remain in reserves.

Looking at the Growth Deal, it was noted that the spending budget for 2026/27was £2.95m, with £470k funded by partner contributions, £240k by local authority supplementary contributions, £154k by partner interest contributions, £660k from the Growth Deal grant earmarked for the revenue element, £435k from the Growth Deal grant earmarked from the projects and £987k from the resource fund. It was explained that an increase in partner contributions because of a reduction in the employer's pension contribution rate did not offset the outturn adjustment for 2025/26 and the wage inflation objective for 2026/27.

It was detailed that changes in projects in the capital profile had led to an overall increase in the projected cost of borrowing compared to the calculation made for the 2025/26 budget. It was reiterated that some partners were also leading their projects, and therefore the cost of borrowing had been added to their interest contributions.

It was noted in relation to the capital budget of the Growth Deal that the most recent expenditure profile had been identified as part of the appendices, and that it was based on the timetable of the most recent projects. It was added that it was being reviewed as the business cases were being approved.

Thanks were extended for the report, and it was noted that it was self-explanatory. It was asked if the use of reserves was sustainable, as this went from year to year. The need for further consideration was noted when formulating a long-term fiscal strategy. It was expressed that they need to be used as it reduced the need to increase the levy on Local Authorities and the National Park.