Agenda and draft minutes

Apologies for absence were received from Councillors H. Jones and E. Skinner.

There were no declarations of prohibited party whips.  

The Chair advised that no public questions had been received.

[NOTE:  Councillor B.W. Jones, having earlier declared an interest in this item remained in the meeting during its consideration but did not vote].

The Committee considered a report on the Council’s Revenue Budget Strategy 2025/26 to 2027/28 and which provided Members with the current view of the revenue budget for 2025/2026, together with indicative figures for the 2026/2027 and 2027/2028 financial years.  The report was based on officers’ projections of spending requirements and took account of the provisional settlement issued by Welsh Government (WG) on 11 December 2024.

It was reported that whilst significant work had already been undertaken in preparing the budget, the report represented an initial position statement which would be updated following the consultation process.  Accordingly, Members were reminded that the report had been considered by the Cabinet at its meeting on 13 January 2025 and members of the Committee had attended recent consultation events which had provided an opportunity to analyse and seek clarification on various aspects of the budget.

The Committee was informed that the announced provisional settlement represented a 4.1% increase for Carmarthenshire, which, taking account of the ‘transfers-in’, equated to £25.1m. While the cash value of the settlement was marginally above the Council’s planning figure, there remained a substantial funding shortfall due to the scale of the additional cost pressures facing Carmarthenshire, particularly in respect of the increase to Employers National Insurance rates.

In terms of Welsh Government Service Specific Grants, most would remain at the same cash value to previous years, thereby resulting in a detrimental impact on outputs due to the increase in general inflation and pay awards.  Welsh Government funding continued to fall short of the true cost of service, effectively meaning the gap would need to be funded the Carmarthenshire taxpayer.  It was reported that the one area of increase related to the Local Authority Education Grants (LAEG), though even here the increase of £22 million was on a like for like basis (circa. 6%) and would be sufficient purely to meet the additional costs of pay awards, but not to actually increase outputs.

The Cabinet Member for Resources referred to a total of £15m new expenditure pressures which had been identified by departments and which was necessary for the Council to deliver its main services at the current level.  In this regard, the Committee was informed that an additional £1.5m would be allocated for Additional Learning Needs, Behavioural support, and enhancing Education and Child Psychology services.

The Committee’s attention was drawn to section 3.5 of the budget strategy whereby an overview of the situation regarding schools’ delegated budgets was provided to Members.  The Committee was appraised of the Authority’s ongoing actions to mitigate the budgetary overspend, however the forecast over expenditure remained at a critical level across a large number of schools within the county and had potential to destabilise the Authority’s wider finances. It was therefore considered highly unlikely that a further budget reduction would in fact be delivered/deliverable at this stage. Accordingly, it was proposed that  ...  view the full minutes text for item 4.

[NOTES: 

• Councillor B.W. Jones, having earlier declared an interest in this item remained in the meeting during its consideration, but did not vote.

·       Cllr. S. Allen, Cllr. K.V. Broom, D. Elias, E. Enoch, Cllr M.J.A. Lewis, V. Kenny, Cllr. E.M.J.G. Schiavone and Cllr. S. Williams having earlier declared an interest in this item remained in the meeting during its consideration.]

The Committee considered the 2024/25 Revenue and Capital Budget Monitoring report for the Education, Children and Family Services for the period up to the 31^st October 2024. It was noted that the revenue budget was forecasting 5,721k overspend, of which £5,077k was related to Schools Delegated Budgets.  The Committee reviewed the main variances on capital schemes, which showed a forecasted net spend of £4,453k compared with a working net budget of £19,959k thereby giving a -£15,506k variance.

The issues/observations raised by the Committee were addressed as follows:-

Reference was made to the underspend attributable to the low number of redundancies approved in the current year.  The Committee was duly appraised of the array of measures undertaken by the Authority to reduce redundancy costs, with the Change Review Panel reviewing each business case and exploring alternative options to minimise costs in this regard.

In response to a query regarding the management of finances for schools with a budget surplus, it was explained that there was no intention to revise the Fair Funding Formula and therefore schools would continue to be responsible for their budgets.  Furthermore, the Committee was advised that the Power BI system would be introduced to support schools with financial management.

In respect of reserves, the Head of Financial Services referred to a specific case approved by the Cabinet whereby Bryngwyn School contributed towards the capital scheme.  It was agreed that further details of the project would be circulated to the Committee.

Reference was made to the ongoing costs of closed school premises following school reorganisations.  Accordingly, the Committee was assured of the proactive approach undertaken by the Authority in reducing premises costs where possible, with buildings and premises offered for community use where appropriate.

The Committee acknowledged the challenges associated with the unpredictable nature of grant funding, and therefore a prudent approach to budget setting was required at the commencement of the financial year, with the expectation of movement and an improved position over time upon receipt of any grant funding awards.  A discussion ensued on income generation for schools whereby the Director of Education, Children and Family Services highlighted the ongoing work to support schools with grant funding opportunities. 

In response to a query regarding the ongoing actions to address school budget deficits, the Committee was advised that statutory intervention could be considered in appropriate circumstances, with an intervention board providing additional oversight and review; however initial feedback indicated that schools were endeavouring to address their financial position with the support provided by the consultant headteacher.  It was reported that a full analysis of the budgetary position of schools, together with the key themes, findings and  ...  view the full minutes text for item 5.

The Committee received for consideration the Business Plans relevant to the Education, Children and Family Services department for 2025/26 as follows:

·       Education and Inclusion Services Plan

·       School Effectiveness and Pupil Engagement Plan

·       Welsh Language (within the People, Digital and Policy Plan)

The Plans set out the strategic actions and measures to be implemented within each Division in order for the Council to progress with its well-being objectives, thematic priorities and service priorities.   The Committee duly reviewed the proposed actions and measures for appropriateness in delivering against the Council’s Corporate Strategy and maintaining the Council’s key functions.

The issues/observations raised by the Committee were addressed as follows:-

Reference was made to the Education and Inclusion Division’s risk register in relation to the failure to provide appropriate support for vulnerable learners.  It was explained that the Authority was channelling resources to mitigate against the pressures faced by schools, however failure to continue in this regard would pose a significant risk to the Authority.

In response to comments made in respect of the assessment of risks, it was highlighted that the mitigating measures should reflect an overall lower score for controlled risks in comparison with uncontrolled risks.  Accordingly, it was reported that arrangements had been made for the risk register to be reviewed and amended as appropriate.

Following a query regarding the risk associated with the lack of sporting opportunities within schools, an assurance was provided that this was an integral part of the curriculum and was considered in line with Risk EC100001 – ‘Failure to raise standards in schools’ and Risk EC100002 –‘Failure to support schools to remodel curriculum in light of Welsh Government reviews’.  The Interim Head of School Effectiveness and Pupil Engagement provided a synopsis of the myriad of support provided to schools in terms of the health and wellbeing of pupils, including physical education.

UNANIMOUSLY RESOLVED that the Business Plans relevant to the Education, Children and Family Services directorate for 2025/26 be endorsed.

The Committee received an explanation for the non-submission of the scrutiny report pertaining to the Headteacher Group Updates.  It was reported that a comprehensive report summarising the matters raised would be provided at the next meeting, and furthermore, the chairs of those meetings could be invited to address the committee at a future meeting if requested by the Committee.

UNANIMOUSLY RESOLVED that the explanation for the non-submission be noted.

The Committee received a list of forthcoming items to be considered at its next meeting to be held on the 1^st April 2025.

RESOLVED that the list of forthcoming items to be considered at the next scheduled meeting on the 1^st April 2025 be noted.

UNANIMOUSLY RESOLVED that the minutes of the meeting of the Committee held on 4^th December 2024 be signed as a correct record.