The Corporate Resources Overview and Scrutiny Committee are scheduled to meet on 29 September 2025 to discuss in-year financial matters, the medium term financial strategy, counter fraud measures, HR policies, the corporate asset programme and the committee's forward work plan.

Mid Term Financial Strategy 2026-27 2030-31

The committee will be considering an updated Medium Term Financial Strategy (MTFS) before it is formally put to the Cabinet and Full Council. The MTFS, which is updated annually, covers 2026/27 to 2030/31 and includes an executive summary.

The report pack highlights areas for members' attention:

• The link between the MTFS, the Corporate Strategy 2022 – 2027, and its associated Corporate Wellbeing Objectives.
• Indicative budget cost pressures.
• Budget gap scenarios based on different levels of council tax and Welsh Government funding.
• Sensitivity analysis of different budget variables and a summary of key assumptions.

The MTFS outlines the council's four Corporate Wellbeing Objectives, designed to improve the social, economic, environmental and cultural wellbeing of Ceredigion's citizens¹. The report pack notes that several key priorities from the Corporate Strategy have been achieved, including:

• Ysgol Dyffryn Aeron.
• The Community Housing Scheme.
• The first Wellbeing Centre in Lampeter.
• Aberaeron Coastal Defence Scheme.
• Two new children's in-county facilities.
• Penmorfa Centre for Independent Living in Aberaeron.
• Moving residents from the Tregerddan Care Home into Hafan y Waun.
• Optimising building utilisation, including collaborative working with Hywel Dda University Health Board (HDUHB).
• Attracting major national and international events to Ceredigion.
• Introducing electric vehicles for parking services.

The report pack states that the medium term financial challenge can be summarised as an indicative budget gap over the next five years of £6.7m. This is based on assumed Welsh Government increases of 2.0% in 2026/27 and 1.6% thereafter, plus a core 7.5% council tax underlying increase. After factoring in an annual budget reductions target, the overall budget shortfall reduces to £3.5m over the next 5 years.

The report pack notes that the closer that pay awards align to Welsh Government funding settlements, the lower and more manageable budget shortfalls become.

The report pack also notes that the 2025/26 Budget saw a Welsh Government funding increase of 3.8%, yet it still resulted in a 9.3% council tax increase due to cost pressures running at a Ceredigion inflation rate of 6.5%.

The report pack states that modelling higher levels of council tax, for illustrative purposes, would reduce the indicative budget shortfall for each year.

The report pack notes that there are a number of external political factors that could still influence the short term, including the Welsh Government's 2026/27 draft Budget, the UK Chancellor's Autumn Budget, Senedd elections in May 2026 and local government local elections in May 2027.

The report pack states that as part of the council's drive to ensure continuous improvement and ensure value for money, the council's overarching financial principles to assist the budget over the MTFS period will include:

• Operational / Efficiencies budget reductions wherever possible.
• Pursuing Treasury Management and Capital Financing opportunities for savings.
• Use of Council Tax Premiums within the parameters agreed by Full Council.
• Building rationalisation and/or Building usage optimisation.
• Service delivery by the 3rd Sector (including Town & Community Councils) where appropriate.
• Energy Efficiency measures & Fleet rationalisation (accommodating Net Zero where economically viable).
• Team Ceredigion approach to continue to pursue Innovation across all Services
• Maintaining a financially viable Education infrastructure.
• Maximising of Income Generation opportunities.
• Investment in the delivery of the Digital Strategy.
• Ensuring there is sufficient base budget funding to protect core Service operations.
• Not targeting Budget cuts from Services, unless there is political direction to significantly reduce or cease Services or functions.

The MTFS currently does not include detailed financial modelling in relation to the council's strategic ambitions for vocational training in and around the Lampeter University campus.

Oversight of in-year financial matters

The committee will be provided with an oversight of key in-year financial monitoring matters. This will include the latest quarterly financial position as reported to Cabinet, and both Revenue and Capital Financial Monitoring reports.

Ceredigion County Council Corporate Asset Programme

The committee will receive an update on the delivery of the Corporate Asset Programme, and to seek comments on proposals included.

Ceredigion County Council holds over 200 assets, with a value of circa £26m. These range from garages and town centre properties to county farms and former schools and units on industrial estates.

The aims of the programme are to have a balanced portfolio of assets that meet the Corporate objectives, and that are sustainable to the future.

The report pack states that the current operational business plan aims to reduce the proportion of empty assets from 12.5% to 8%, and increase the return on asset value to at least 4% (£1.04 million annually), aligning with the council's corporate priorities and economic ambitions.

The longer term strategic objectives are to rebalance the portfolio toward higher-performing assets such as industrial units, and to support local economic development through strategic asset use.

The report pack notes that key actions currently being undertaken are:

• Empty Asset Reduction
• Income Generation
• Asset Development

The report pack outlines financial projections based on maintaining the current asset portfolio.

The report pack notes that decisions on investments and disposals of assets will be informed by:

• Alignment with Corporate Priorities
• Alignment with Economic Priorities
• Ceredigion County Council's Medium Term Financial Strategy
• Opportunities either external funding, market interest etc.

The report pack states that the priorities for action are:

• Assets for development - Major strategic developments
• Town centre regeneration
• Asset Development, maintenance, disposal
• Acquisition
• Development funding

Counter Fraud Strategy and Counter Fraud Protocol

The committee will consider the Counter Fraud Strategy and Counter Fraud Protocol.

The Counter Fraud Strategy and Protocol replaces the existing Strategy on Countering Fraud, Corruption & Bribery which was approved in 2021 by Cabinet.

The report pack states that the existing strategy has been reviewed and updated to strengthen the council's response to fraud and takes into account recommendations made by Audit Wales in their national report 'Raising Our Game - Tackling Fraud in Wales'.

The report pack notes that the review included:

• An update to establish a clear counter fraud culture and to set out the expected behaviours, processes and procedures to be followed by both members and employees when dealing with suspected fraud.
• The strategy has established the council's mission, position and objectives on preventing, detecting and responding to fraud.
• Inclusion of the Fraud Risk Assessment process and how fraud risks are identified, managed and monitored.
• Strengthened and clearly defined reporting requirements.
• Strengthened the roles and responsibilities to clearly outline expectations of employees, members and the public.
• Updated and improved the Fraud Response Plan (including flowchart) setting out the expected process.

HR policies Reviewing Professional Development Policy and Managing Schools Organisational Change in Policy

The committee will review and recommend the following two schools policies:

• Reviewing Professional Development Policy
• Schools Managing Organisational Change Policy

The report pack states that the People & Organisation Service has been continuing to review, develop and update key policies, and that following consultation, the following policies and guidance documents have been discussed, amended in consultation with the recognised corporate trade unions:

• Reviewing Professional Development Policy
• Schools Managing Organisational Change Policy

The report pack notes that the purpose of all employee policies and procedures is to clearly set out the behaviours, processes and procedures required, how they can gain advice and support and, where applicable, the consequences of not adhering to the policy and/or procedure.

The report pack states that the Reviewing Professional Development Policy is a new policy developed to set out Ceredigion County Council's recommended policy for schools to engage with the important task of securing effective teaching and leadership for the benefit of all learners, practitioners and the wider school staff. The purpose of this policy is to enable schools to support practitioners to continuously develop themselves as committed professional learners, through reflection, collaboration and innovation.

The policy aims to:

• Provide a framework to support practitioners to continuously develop themselves as committed professional learners, through reflection, collaboration and innovation.
• Foster an environment in which constructive and open dialogue can take place within a culture of trust, and an expectation that practitioners take responsibility for their own professional development.
• bring arrangements in line with ongoing changes to the education landscape, including the Curriculum for Wales, school improvement arrangements, the national professional learning entitlement and the schools as learning organisations model.
• comply with the requirements of The School Teacher Appraisal (Wales) Regulations 2011 and reflects the Welsh Government's updated guidance of March 2024 which replaces the Welsh Government performance management guidance for teachers, headteachers and unattached teachers (2012).

The report pack states that the Schools Managing Organisational Change Policy sets out Ceredigion County Council's recommended policy for schools to effect organisational change which may require contractual changes for employees, or the requirement to make posts redundant.

The report pack notes that the current policy has been reviewed to ensure that it remains compliant with legislation and is fit for purpose, and ensures that all stakeholders are clear on their responsibilities as part of the change process.

The report pack states that the proposed changes to the Policy are as follows:

• Further clarification on the role of the Governing Body and Headteacher and the decision-making process.
• Re-formatting the policy to ensure the process is set out systematically to guide schools sequentially through each step of the process.
• Updating of all appendices to reflect the values of Ceredigion County Council.

Consider the Committee's Forward Work Plan

The committee will be considering its forward work plan.