The Policy Review and Performance Scrutiny Committee of Cardiff Council met on Wednesday 09 September 2026 to discuss the progress of the Digital Strategy and the Council's Budget Strategy and Medium-Term Financial Plan. Key discussions included the ongoing development of digital services, the significant budget deficit facing the council, and the implications of these for service delivery and future planning.

Digital Strategy Progress Update

The committee received an update on Cardiff Council's Digital Strategy 2025-2030, which aims to create a digitally connected city with efficient, innovative, and cost-effective services designed around citizens. Councillor Bethan Proctor, Cabinet Member for Social Justice, Cohesion and Digital, highlighted the shift from strategy to delivery, with a focus on digital inclusion and ensuring a positive citizen experience. The strategy is underpinned by five key principles: the citizen at the centre of design, processes supported by the right solutions, platforms working alongside the workforce, technology increasing collaboration, and continuous monitoring and improvement of developments.

Significant progress has been made in various areas, including the successful migration of the council's website to a new content management system, the ongoing implementation of an Enterprise Resource Planning (ERP) system, and the roll-out of Robotic Process Automation (RPA) to reduce administrative workload. The committee heard about the development of a generative AI-powered chatbot, BOBi, and the council's cautious approach to adopting artificial intelligence (AI) technologies, with a strong emphasis on security and ethical use. Digital inclusion remains a core priority, with ongoing work in community hubs and digital workshops to support residents, particularly those over 50 and vulnerable citizens.

Members raised questions regarding the use of AI, the decision-making process for premium Copilot licences, and the safeguards around the BOBi chatbot. Concerns were also raised about the potential for a new data centre in Pentwyn and the relocation of servers from County Hall. The committee was reassured that the council has adequate facilities and is not currently planning for new data centres. Discussions also touched upon the challenges of reaching ethnic minority communities and autistic individuals with digital services, and the council's commitment to improving connectivity across the city. The committee was also informed about the continuous cyber-attacks faced by the council and the robust measures in place to defend against them.

Budget Strategy and Medium-Term Financial Plan 2027/28

The committee undertook pre-decision scrutiny of the Council's Budget Strategy and Medium-Term Financial Plan (MTFP) for 2027/28. Councillor Leonora Thomson, Cabinet Member for Finance, Modernisation & Performance, presented a stark picture of a projected budget gap of £45 million for 2027/28, with a total gap of £163.7 million over the period 2027/28 to 2030/31. This significant deficit is attributed to rising costs in key service areas such as education and social care, coupled with uncertain funding from the Welsh Government.

The council's strategy to address this gap involves a combination of council tax increases, modelled at 4.95% annually, and substantial savings, estimated at £118.9 million over the medium term. The report highlighted that efficiency savings alone are unlikely to be sufficient, necessitating potential changes that impact service delivery. Key pressures identified include pay awards, price inflation, increased demand for services, and the recommissioning of adult social care placements, which is estimated to cost an additional £4 million in 2027/28.

Members expressed concerns about the impact of these pressures on schools, particularly regarding Additional Learning Needs (ALN) provision, and the potential for schools to face deficit budgets. The committee discussed the uncertainty surrounding Welsh Government funding, especially for ALN, and the council's efforts to advocate for a fair funding settlement. The report also detailed the council's capital programme, emphasizing a constrained approach to borrowing due to the significant investment in the Arena project and a focus on developer-led solutions for major projects. The financial resilience of the council was also reviewed, noting a balanced revenue outturn for 2025/26 but highlighting ongoing challenges and the importance of managing reserves effectively.

Work Programme 2026/27

The committee reviewed and agreed its work programme for the remainder of the municipal year 2026/27. The programme includes a range of topics for scrutiny, prioritised based on their significance and emerging issues. Key areas for review include the Corporate Plan 2027-2030, the ongoing Change/Transformation Programme, performance monitoring, the Equality, Diversity & Inclusion Strategy, and the council's relationship with Stonewall. The committee also scheduled scrutiny of the 2027/28 Revenue Budget and Medium-Term Financial Plan, the Oracle Fusion Finance Management System, and the Fleet Management Strategy. The work programme will be published on the council's website and reviewed quarterly.

Committee Correspondence

The committee noted correspondence and responses received from the Cabinet regarding scrutiny meetings held in June and July 2026. A particular point of discussion arose concerning the council's relationship with Stonewall, with members expressing concerns about the wording of a letter sent to the Cabinet Member and the lack of a clear resolution. The committee agreed to ensure that future correspondence more accurately reflects the consensus of the committee and that a process for addressing unresolved issues is established.

Date of Next Meeting

The next meeting of the Policy Review and Performance Scrutiny Committee was scheduled for Wednesday, 7 October 2026, at 4:30 pm.