The Cabinet of Carmarthenshire Council met on Monday 19 February 2024 to discuss and approve the Revenue Budget Strategy for 2024/25 to 2026/27, which included a 7.5% Council Tax increase. They also endorsed the five-year Capital Programme and approved the Treasury Management Policy and Strategy for 2024-25, alongside the Flood and Coastal Erosion Risk Management Local Strategy.

Revenue Budget Strategy 2024/25 to 2026/27

The Cabinet considered the latest proposals for the Revenue Budget for 2024/25, with indicative figures for the following two years. The report detailed the budgetary position, including updates on budget validation, spending pressures, the Welsh Government's final settlement, and feedback from the budget consultation. Councillor Alun Lenny, Cabinet Member for Resources, highlighted the inherent risks within the strategy, including uncertainties over future pay awards and inflation, as well as specific risks related to the unresolved funding of teachers' and firefighters' pensions, the delivery of investment in Children's Services, and the implementation of budget reductions across all council services.

Despite these challenges, the proposals aimed to deliver a balanced budget that responded to consultation feedback, maintained service levels and standards where possible, protected core services, and prepared the Authority for future uncertainties. Councillor Darren Price, Leader of the Council, acknowledged the difficult financial climate for local authorities, noting that Carmarthenshire's proposed 7.5% Council Tax increase was significantly lower than the double-digit rises faced by some other local authorities, with some even facing bankruptcy.

The Cabinet unanimously resolved to recommend to the County Council:

• Approval of the Budget Strategy for 2024/25, including amendments detailed in paragraph 4.1.5 of the report.
• Approval of the Band D Council Tax for 2024/25 at £1,602.80, representing a 7.5% increase.
• Approval of the removal of specific savings proposals as identified in paragraph 3.2.7 of the report.
• Approval for the use of £3m from the RSG reserve, with £2m allocated to support temporary costs of commissioned residential children’s placements and £1m to support the delegated schools budget, as outlined in paragraph 5.2.3.
• Approval of the Medium Term Financial Plan, which will form the basis for future years' planning.
• Delegation of authority to the Director of Corporate Services, in consultation with the Chief Executive, Leader, and Cabinet Member for Resources, to make any necessary amendments following the Welsh Government's final settlement announcement on 27 February 2024.

Five Year Capital Programme (Council Fund) 2024/25 to 2028/29

The Cabinet reviewed proposals for the five-year Capital Programme, taking into account consultation feedback and revenue implications. The proposed gross expenditure for 2024/25 was £86.930m, with £50.374m funded from the Council's own resources and £36.556m from external sources. The programme is designed to be fully funded over the five years, with some available funding under-committed in later years to provide flexibility for unexpected costs. The updated Capital Strategy, which sets out the long-term context for capital expenditure and investment decisions, was also considered.

The Cabinet unanimously resolved to recommend to the County Council:

• Approval of the five-year Capital Programme and its funding, with 2024/25 designated as a hard budget and 2025/26 to 2028/29 as soft/indicative budgets.
• That the programme be reviewed if anticipated external or County Council funding does not materialise.
• Approval of the Capital Strategy.
• Delegation of authority to the Director of Corporate Services, in consultation with the Chief Executive, Leader, and Cabinet Member for Resources, to make any necessary amendments following the Welsh Government's final settlement on 27 February 2024.

Treasury Management Policy and Strategy 2024-25

The Cabinet was reminded of the requirement to maintain a Treasury Management Policy and approve an annual Treasury Management Strategy. The report presented the Council's Treasury Management Policy and Strategy for the 2024-25 financial year, along with the Treasury Management Indicators, Prudential Indicators, Minimum Revenue Provision Statement, and Investment Strategy.

The Cabinet unanimously resolved to recommend to the Council:

• Approval of the Treasury Management Policy and Strategy for 2024-25 and its recommendations.
• Approval of the Treasury Management Indicators, Prudential Indicators, Minimum Revenue Provision Statement, and the Investment Strategy.

Treasury Management and Prudential Indicator Report 1st April 2023 to 31st December 2023

This report provided an update on the treasury management activities undertaken between 1 April and 31 December 2023. It confirmed that the Authority had not breached any of its Prudential Indicators during this period.

The Cabinet unanimously resolved to approve the report.

Flood and Coastal Erosion Risk Management (FCERM) Local Strategy

The Cabinet was reminded of the statutory requirement under Section 10.7 of the Flood and Water Management Act 2010 for Local Authorities to publish a local flood risk management strategy and plan. This strategy outlines the current approach to managing flood and coastal erosion risk, future ambitions for 2030, and the methods for achieving these goals. The plan is scheduled for production in Quarter 4.

The Cabinet unanimously resolved to recommend to the Council that the Flood and Coastal Erosion Risk Management (FCERM) Local Strategy be approved.

LA Governor Appointment

The Cabinet was informed of a vacancy for a Local Authority Governor on the Governing Body of Brynaman Primary School. Councillor Glynog Davies, who is the Chairperson of the Governing Body, and the Headteacher nominated Miss Gabriella Robinson, a former parent governor, for the position. They believed her expertise and local knowledge would benefit the Governing Body.

The Cabinet unanimously resolved to appoint Miss Gabriella Robinson to the post of LA Governor at Brynamman Primary School. Councillor G. Davies had declared a personal interest in this item as he is the Chair of the Governing Body.

Other Items of Business

The Chair advised that there were no other items of urgent business to be considered.