Agenda item

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

To note and accept the revenue end of December 2025 review for the CJC (Appendix 1).

To note and accept the revenue end of December 2025 review for the Economic Well-being Sub-committee (Growth Deal), including the reserves position (Appendix 2 and 3). 

To note and accept the Growth Deal’s revised capital expenditure profile (Appendix 4).

To note and accept the revenue end of December 2025 review for the RSP (Appendix 5).

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

RESOLVED:

To note and accept the end of December 2025 review for:-

·       The Corporate Joint Committee (Appendix 1).

·       The Economic Well-being Sub-Committee (Growth Deal), including the reserves position (Appendices 2 and 3).  

·       Growth Deal Capital Plan (Appendix 4)

·       The Regional Skills Partnership (Appendix 5). 

DISCUSSION

The report was presented stating that it provided an estimate of the financial position of the CJC. It was stated that they estimated an underspend of £959k this year. It was noted that this was an increase from the £411k projected in the July review. It was explained that this was due to the CJC's success in securing a grant budget from the Welsh Government for the Strategic Development Plan and the implementation of the Joint Committee.

Attention was drawn to the Growth Deal, and it was noted that they estimated an underspend of £618k, which again was an increase of from £281k projected in July. It was expressed that this was due to further underspending in employee spending, additional governing roles, the support services of the accountable body and project headings.

It was noted that a revised capital profile for the Growth Deal indicated a net reduction of £7.46m in expected expenditure for 2025/26. It was reiterated that there was a slippage with some projects, although some were progressing and as a result the underspend had been reduced.

It was expressed that given the Regional Skills Partnership budget the situation would be neutral and funded by a Welsh Government grant along with a reserve.

Thanks were extended for the report and the overspending was highlighted, and it was stated that they understood it was due to a lack of appointment to positions. It was asked whether there was a possibility to reduce the contribution of Local Authorities due to the magnitude of the projected underspend. The response noted that the contributions were set out in a funding agreement signed by all the Authorities. It was stated that the underspend would be placed in specific reserves and would be available to finance deficits such as in the Strategic Planning programme budget. It was explained that the money in reserves had been determined by the members last year and would be discussed again in the end-of-year report to approve the use of the underspend.

Concern was highlighted about the underspend in light of the financial challenges facing Local Government, considering the tight budgets and overspending of frontline services across the region.

It was explained that budgets in the Strategic Development Plan highlighted the use of the reserves to secure a full budget for the 5 years of the Plan. It was highlighted that further information on this matter would be featured in item 9 of today's agenda.

An understanding of the rationale behind putting money in reserves was noted, but that there was a need to ensure that money was not being piled up unnecessarily, and by setting an annual budget without a medium or long term plan, there was a concern that there would be a huge increase in the levy from one year to the next. In response, it was noted that the CJC was a new body and as a result there were unfilled positions. It was emphasised that this report was a forecast and that no decision was being made on the underspend today; this would be decided in the end-of-year report. It was reiterated that the money would be put to specific use over the next few years as the costs of the CJC increased. It was explained that the reserves would hopefully help to keep the levy as low as possible.

A request was made for a comprehensive report for the end-of-year decision, as there were so many concerns about the underspend this year. It was also stressed that there was no certainty what the situation would be following the Welsh Government elections in May.