Agenda item

The Executive Board Member for Resources presented to the Council, on behalf of the Executive Board, the Five-Year Capital Programme (Council Fund) 2020/221 to 2024/2025, which took into account the consultation exercise undertaken and the Welsh Government settlement. The Executive Board, at its meeting held on the 24^th February, 2020 [minute 7 refers] had considered the Programme and had made a number of recommendations for Council’s consideration.

The Executive Board Member for Resources stated that the proposed capital programme, which anticipated an estimated spend of nearly £255m over the five years 2020/221 to 2024/2025, optimised the funding opportunities and maximised the funding available from external sources. A combination of existing and new schemes would, it was considered, develop the local economy, create jobs and enhance the quality of life for residents of Carmarthenshire. County Council funding for the programme was currently estimated at £126m with a further £129m sourced from external grant funding bodies. No forward indicators had been provided by Welsh Government in respect of capital funding beyond 2020/21 and the programme was, therefore, based on future years supported borrowing and general grant being at the same level as 2020/21.

The Executive Board Member for Resources advised that many of the investments, such as the 21^st century schools programme, highways, regeneration and housing, would be familiar but it had again been possible to add investment into schemes which were deemed important for the county. Within Community Services the capital programme made material investment in leisure and cultural services. The most significant of these was £1.9m investment of new money into Oriel Myrddin, with £650k to be invested in Carmarthen Leisure Centre to complete the masterplan and continued support for private sector housing in 2024/25 for Disabled Facilities Grants. Within the Environment Department there would be continued support for highway improvements, bridge maintenance and road safety schemes in 2024/25. Council funding on highway maintenance would continue to be bolstered in 2020/21 through the Road Refurbishment Grant provided by Welsh Government. Council was informed that it had been possible to make additional commitments across the Council’s estates with £2.5m provision for essential work to County Hall, £500k for works at Ty Elwyn and £3.5m towards the continued maintenance across the estate in 2024/25. New monies would be provided for Zero Carbon initiatives across the estate. Additionally, £2.7m of additional funding from Welsh Government would be utilised for the maintenance of school buildings. £4m was included for the redevelopment of Llandeilo Market Hall and £847k for the continued investment in Glanamman Industrial Estate. £500k had also been allocated towards the actions required following the Climate Emergency declared in 2019/20.

The Executive Board Member for Resources commented that support was also provided for the transformation strategy project within regeneration for 2024/25 which had the potential of attracting significant external funding to match-fund the Council’s budget. Council’s attention was drawn to the comprehensive details set out in appendix B to the report together with the reserve list of priorities. Officers would continue to monitor individual schemes and funding availability. Whilst both would need to be closely managed to ensure the schemes were delivered in full the Executive Board Member for Resources reported that the current programme was fully funded for the 5 years. Included in appendix C to the report was the Council’s Capital Strategy 2020/21 which was required by the Prudential Code of Capital Finance and detailed the long-term context in which capital expenditure and investment decisions were made.

In conclusion the Executive Board Member for Resources believed the capital programme was comprehensive, exciting and ambitious, with the Authority maximising opportunities and he thereupon moved the recommendations of the Executive Board.

The proposal was duly seconded.

The following amendment was thereupon proposed and seconded:-

“That the Authority invests in the setting up of a bus company using clean energy such as electric power by the start of the new school year 2020 by utilising £3m from capital reserves.”

Council was advised that current legislation did not allow for local government to run transport companies although a Draft Public Transport (Wales) Bill was due to be considered by Welsh Government which may address this issue. The Director of Corporate Services /Section 151 Officer commented that if it was proposed to utilise £3m for the purpose stated then Council would need to identify what would be removed from the proposed Capital Programme to fund it as all the capital reserves were allocated over the 5 year programme. It was also clarified that if the £3m was funded by additional borrowing it would impact on the already agreed Revenue Budget [Minute 7 above refers].

[At this point the Chair adjourned the meeting for 20 minutes to enable the proposer and seconder of the amendment to seek further advice from the Director of Corporate Services / Section 151 Officer.]

Upon the reconvening of the meeting the proposer of the amendment stated that, with the consent of his seconder, he wished to withdraw the amendment following clarification from the Director of Corporate Services / Section 151 Officer and in the knowledge that the Welsh Government was in the process of considering the Draft Public Transport (Wales) Bill. It was requested, however, that cross-party discussions be commenced to consider the options and cost implications for establishing a transport company in anticipation of theaforementioned Bill’s approval. The Chief Executive, in response to comments relating to the operational scope of such a transport company, suggested that the issue could be considered within the remit of the Swansea Bay City Deal in the context of establishing a regional transport plan. Members accepted this as a way forward.

UNANIMOUSLY RESOLVED that the following recommendations of the Executive Board be accepted:-

8.1 that the Five-Year Capital Programme and its funding, as detailed in

Appendix B to the report, with 2020/21 being a hard budget and

2021/22 to 2024/25 soft/indicative budgets be approved;

8.2 that the programme be reviewed if anticipated external or County

Council funding did not materialise;

8.3 that the Capital Strategy, as detailed in Appendix C, be approved.