Agenda item

To note the outcome of the reports to the Corporate Joint Committee (CJC) held on 23rd January 2026 and the next steps for the Strategic Development Plan.

To note the outcome of the reports to the Corporate Joint Committee (CJC) held on 23rd January 2026 and the next steps for the Strategic Development Plan.

The report was submitted by the Regional Strategic Development Planning Officer.

RESOLVED

To note the outcome of the reports to the Corporate Joint Committee (CJC) held on 23rd January 2026 and the next steps for the Strategic Development Plan.

REASONS FOR THE DECISION

Responsibility to prepare the draft Delivery Agreement rests with the Strategic Planning Sub-Committee. The sub-committee has co-ordination and planning functions regarding each step towards delivery of the SDP.

DISCUSSION

The Regional Strategic Development Planning Officer presented a report summarising the outcome of the Corporate Joint Committee meeting held on 23 January 2026 and the steps leading to the recommendation to formally submit the Strategic Development Plan Delivery Agreement to Welsh Government for ministerial approval. It was explained that the report sets out a comprehensive audit trail which brought the Sub-Committee up to date and evidenced the stages the Delivery Agreement had progressed through. Reference was made to the background section of the report, which included signposts to the meetings at which the Sub-Committee had previously considered the Delivery Agreement and the basis on which recommendations had been made.

It was reported that September 2025 had been a key milestone, as the Sub-Committee had considered a draft version of the Delivery Agreement and its appropriateness to be submitted to Welsh Government for formal approval, subject to confirmation that the Corporate Joint Committee could set the 2026 to 2027 budget and identify the additional funding required to commence the Strategic Development Plan and sustain delivery across the five year programme. It was noted that the Corporate Joint Committee had subsequently endorsed the same conditional position on the 19th of September 2025, recognising the financial concerns raised, and that the Delivery Agreement could not progress further until the 2026 to 2027 budget had been set.

It was explained that, through the autumn budget-setting process, work had been undertaken with the Chief Finance Officer and finance officers to identify options which aligned with the previously stated requirements, namely that the additional resources required for the Strategic Development Plan should, where possible, be found from within currently available resources and should not place a substantial additional burden on local authority budgets through a significant increase to the levy. It was reported that the budget-setting process had identified a means of meeting the year one funding requirement without creating an additional levy pressure attributable to the Strategic Development Plan, and it was noted that the levy increase for 2026 to 2027 had been limited to an inflationary uplift of 3.5%.

It was stated that the estimated average annual funding requirement for delivery of the Strategic Development Plan over the five-year programme was approximately £655,000 per year. It was noted that the year one budget had been set at £597,000, reflecting the anticipated requirement for the first year rather than seeking the full average amount, and that the budget would be reviewed and set annually through the normal budget cycle.

It was reported that the ability to set the year one budget without a significant levy impact had been achieved through the use of internal resources, including an underspend against the Strategic Development Plan revenue budget in 2025 to 2026 and the securing of a Welsh Government performance grant of £200,000 during the year. It was noted that these elements had mitigated potential cost pressures on the constituent authorities and could provide similar mitigation into year two, and potentially beyond, depending on future circumstances.

In discussion, it was questioned whether Welsh Government grant funding would be available in the coming year to support the Strategic Development Plan. In response, it was noted that no prescriptive information had been issued by Welsh Government, and it was noted that certainty regarding future grants was unlikely given the proximity to the election period. It was stated that, despite there having been no funding available nine to ten months earlier, a performance grant of £200,000 had been secured, which formed part of a £400,000 allocation across the four Corporate Joint Committees, and this demonstrated the benefit of demonstrating good progress with the plan. It was further noted that the Strategic Development Plan was one of the areas of Corporate Joint Committee work which did not automatically attract an annual grant supplement. It was noted that representations to Welsh Government would continue, with progress being used to strengthen future cases for funding, particularly post-election depending on policy priorities.

It was questioned whether interest on funds held could be used to support the Strategic Development Plan and reduce levy pressures. In response, the Chief Finance Officer reported that this had been considered within the corporate plan and budget process. It was noted that the Corporate Joint Committee remained a relatively young body and that some posts had not been filled as quickly as expected, resulting in underspends accruing. It was reported that this position had enabled the levy charged on the six councils and the National Park Authority to be kept down for 2026 to 2027. It was noted that, whilst the underspend had not been planned, the position had allowed a significant portion of funds to be applied to Strategic Development Plan delivery, helping to minimise levy increases in a context where future Welsh Government funding could not be guaranteed.

It was emphasised that the significance of submitting the Delivery Agreement to Welsh Government was not only the ability to fund year one, but the commitment to fund delivery across the full five-year programme. It was noted that the Corporate Joint Committee had held a detailed discussion regarding balances and reserves, and it was reported that maintaining reserves was a prudent approach which mitigated future financial risk and provided assurance in the event of variable funding year on year. It was noted that this approach supported a positive recommendation to proceed with formal submission, and it was reported that the financial position was considered sufficiently robust for at least the first two to three years, noting that underspends would not necessarily arise every year.

It was questioned whether a significant levy increase should be anticipated the following year if there was no further underspend and no additional Welsh Government funding. In response, it was reported that no guarantees could be provided but no large increase was expected in the levy the following year. It was noted that the approach taken created flexibility and mitigation, as the £200,000 grant would either fund revenue expenditure in-year or flow into balances as an underspend, with either route supporting the subsequent budget-setting position. It was reiterated that the Strategic Development Plan was a statutory requirement, and it was noted that funding would need to be identified through the Corporate Joint Committee’s budget process rather than relying on grants, alongside ongoing efforts to secure additional external funding. It was emphasised that the project was in the best position possible financially at the start of a project of this nature.

Further information was requested in relation to the Welsh Government Strategic Performance Grant of £200,000. In response, it was clarified that the Welsh Government Performance Grant of £200,000 related to 2025 to 2026, was claimed in arrears, and it was noted that approximately £50,000 had been claimed to date with the remaining claim to be submitted at the end of the financial year. It was noted that this income would appear in the 2025 to 2026 accounts and within the strategic planning income lines in the relevant revenue monitoring information, and it was further noted that any associated underspend could be carried forward into reserves for use in 2026 to 2027.

It was reported that a mid-term financial plan covering a three-to-five-year forecast would be brought forward around September 2026 and it was noted that this would provide clearer visibility of anticipated funding and likely levy changes, with the intention that future impacts would be understood in advance of the annual budget-setting stage.

A member acknowledged that, where possible, unspent money would ordinarily be recovered given the financial strain placed on many local authorities, but it was noted that carrying funds forward into reserves to support the five-year Strategic Development Plan programme was appropriate given the statutory nature of the work, the need to minimise levy impacts, and the benefit of having mitigation available for future years. In response, it was reported that, over time, a Strategic Development Plan should reduce duplication and lead to a more streamlined and efficient approach to local development plan reviews and begin to accrue financial savings in the longer term.