The Torfaen Council Cabinet met on 2 September 2025, and approved recommendations relating to the financial forecast for 2025/26, and the council's participation in the Active Gwent regional sports partnership. The Cabinet also approved the award of a contract to upgrade the existing sports pitch at Cwmbran High School to a 3G pitch¹. In addition, the Governance and Audit Committee agreed to approve the revised and updated anti-fraud strategy, money laundering policy, and the local code of corporate governance.

Financial Forecast 2025/26

Cabinet agreed to note and approve the initial revenue and capital forecasts and comments regarding the outlook for achieving a balanced revenue position by the end of the financial year.

The report outlined the anticipated financial outturn for 2025/26, based upon budget holder and Strategic Director engagement to July 2025. The initial forecast of the revenue budget indicated a potential net adverse variance of £624,000 against the net budget of £248 million. The forecast reflected the reduction of reserves for specific projects and pre-approved revenue budget support to those levels, as well as more recently approved reserve usages. The report set out the updated, reprofiled, programme, inclusive of slippage from 2024/25 and recent externally-funded additions, and the forecast against the updated budget, which currently reflects nil variance.

The factors behind the main forecast variances were:

• Children & Family Services – The overall position in relation to the Children's Social Care division reflects a minor adverse variance. The forecast placement numbers (424) are below the budgeted number (438), however the requirement to use unregulated placements has added some pressures due to the costs associated with these types of placement. This pressure, which totals £401,000, is more than offset by reduced contract inflation and planned step-down arrangements over the remainder of the year. In addition, in-year savings are expected in relation to the use of taxis for transporting children and directs payments, as well as employee-related savings of nearly £400,000. As a result of the overall position, it means that the transition fund, that was approved for the year in order to manage the transition to lower placement numbers, is not currently forecast to be required in full. The Education division is also reporting a minor favourable position.

• Adults & Communities The adverse variance of £271,000 within this service contains a number of largely offsetting variances. The main pressure relates to the trading account for Greenmeadow Community Farm and amounts to £407,000. Elsewhere within the service is a net favourable variance of £120,000 in relation to Adult Services. This net position, to some extent, masks significant compensating variances, with employee-related underspends of £1.141 million being largely offset by third party placement pressures of £1.017 million.

• Economy & Place Overall, a net £2,000 adverse variance is being forecasted. The most significant of these is a favourable variance in relation to Asset Management, where the impact of rent reviews has resulted in projected income in excess of the budget totalling £71,000, and an extra £75,000 of grant funding to cover staffing costs. In addition to this is an in-year saving of £51,000 due to vacant posts. Offsetting these favourable variances are pressures arising from additional property-related costs, a reduction in building control income linked to reduced applications and fee recharge income that may not achieve the budget target.

• Neighbourhood & Environment The net projected position for this service is an adverse variance of £58,000. The main reason for this forecasted position is reduced income from the sale of recyclates, due to baler downtime, the impact of higher than expected vehicle insurance premiums and the cost of consumables within Waste Management. Partly offsetting these pressures is an in-year saving within Public Protection of £61,000 due to staff-related savings such as vacancies.

• Resources The favourable variance being forecast within Resources is due to employee-related savings across a number of services, largely due to vacancies. Partially offsetting these savings are various in-year pressures including a shortfall in land charges income, additional system costs within Financial Services, and a shortfall in registrars income.

• Capital Financing This budget is forecasting a minor favourable variance. The two elements contributing to this position are lower Minimum Revenue Provision charges compared to budget (£300,000), which has arisen due to slippage in the capital programme during the previous financial year, and additional in-year costs relating to interest payments and debt management expenses (£298,000), resulting from interest rates not falling as quickly as anticipated and the costs associated with temporary borrowing.

• Council Tax Reduction Scheme This budget is forecasting a favourable position of £77,000, with demand currently being 9,229 cases against the budgeted level of 9,426.

• Housing Benefit Subsidy This budget is forecasting a significant adverse variance of £373,000. As in previous years, this is largely the result of Housing Benefit (HB) costs that aren't eligible for HB Subsidy from the Department of Work & Pensions (DWP). This scenario arises in relation to high-cost temporary accommodation for homeless individuals, where the DWP subsidy rate is fixed and doesn't cover the full cost incurred.

• Centrally Held Budgets An overall adverse variance is forecasted against these budgets, largely due to delays in implementing certain budget mitigations, which have introduced a potential pressure of £437,000.

• Finance Other This budget contains items that do not readily fit into any other budgets. There are a number of variances, which lead to the overall favourable variance of £369,000, of which the largest relates to £138,000 of backdated Non-Domestic Rates credits. The other main favourable variance is an over-recovery of employer pension contributions (£125,000), with an anticipated net £67,000 surplus in relation to Council Tax also contributing towards the overall position.

Active Gwent: Sports Wales Partnership

Cabinet agreed to approve the participation of Torfaen CBC in the Active Gwent regional sports partnership on the terms set out in the report and delegate authority to the Head of Community and Wellbeing to act as the Council’s representative on the Partnership.

There is a national directive for Sports Wales to move towards a regional model of sports governance and delivery, and sports funding for future years will only be released once the regional governance arrangements for Active Gwent are in place. Each region has developed its own model for meeting the regional requirements. Gwent is proposing an Active Gwent partnership, hosted by Newport Council. The host authority will be responsible for staffing the partnership, providing the secretariat and accounting services for the distribution of the funds to the relevant local partners (including local authorities). The host authority will not be responsible for decisions on strategy and budget which will be taken by the Active Gwent Governance Board. The Active Gwent Governance Board will comprise 1 senior officer representative from each of the 5 Local Authorities alongside 5 Independent Board Members and an Independent Chair. The requirement for an independent chair is part of the national directive. Operational decision making will be led by the Active Gwent Steering Group which will comprise an operational lead for each of the 5 local authorities plus independent steering group members.

Currently Torfaen CBC in the financial year 2025/26 receives £277,330, of which £6,904 is carry over from 2024/25. The grant going forward is expected to be £270,426 which is made up of Welsh Government and Lottery Funding and is provided currently for established programmes. The money currently provides salary costs for 3.5 FTE Health, Sport and Fitness Development Officers as well as full programme costs for the Free Swim initiative (delivered by Halo Leisure), the Over 60's project (Thrive) and additional funds that helps the Officers with in the Health, Sport and Fitness Team deliver projects that help Torfaen meet the targets with in the Sport and Leisure and Community and Wellbeing strategies.

Contract Award Report – Cwmbran High 3G Pitch

Funding has been secured to upgrade an existing redgra² sports pitch to a 3G pitch at Cwmbran High School.

The design, tender specification and construction are being managed by Economy & Environment’s Property Services team on Education’s behalf. Ardal Procurement has led the procurement activity, and the project was tendered through Sell2Wales. Tenders have been evaluated, and the proposed successful tender is within the agreed budget.

Draft Anti-fraud Strategy; Money Laundering Policy and Local Code of Corporate Governance

The Governance and Audit Committee agreed to approve the revised and updated:

• Anti-fraud strategy;
• Money laundering policy; and
• The local code of corporate governance.