Cardiff Council's cabinet convened to discuss a range of issues, including the submission of the Replacement Local Development Plan to the Welsh Government, proposed additions to the local heritage list, and the introduction of a visitor levy. The cabinet agreed to submit the Replacement Local Development Plan to the Welsh Government for examination, approved a consultation on the visitor levy, and approved additions to the local heritage list. They also reviewed reports on local air quality and budget monitoring.

Replacement Local Development Plan

The cabinet agreed to submit the Replacement Local Development Plan (RLDP) 2021-2036 to the Welsh Government for examination. The plan sets out the council's strategy for development and growth in the city up to 2036.

Councillor Dan De'Ath, Cabinet Member for Climate Change, Strategic Planning & Transport, explained that the consultation on the deposit plan, which ran from February to April, received 152 responses, translating to around 900 representations on the plan's policies and proposals. An additional 633 responses objected to the greenfield sites put forward by developers and landowners. Councillor De'Ath noted that the RLDP does not propose to allocate any further greenfield sites, effectively supporting the plan.

Councillor Huw Thomas, Leader of the Council, praised Councillor De'Ath and the planning department for their work on the plan, calling it an enormous piece of work representing, I think, one of the most important documents that the city will take ownership of in the next decade.

Councillor Rodney Berman raised concerns about the achievability of the sustainable transport target, which aims for 75% of all journeys in Cardiff to be made by sustainable means by 2030. He noted that the current figure is 53%. Councillor De'Ath acknowledged that the target would be challenging but said that the council was committed to doing all it could to achieve it.

Councillor John Lancaster raised concerns that the 940 representations received during the consultation had not been listened to, questioning the point of the consultation exercise. He also asked whether the council would take on board the Welsh Government's recommendation for some sites to have 50% affordable housing, and if not, whether that risked that part of the plan failing.

In response, Councillor Thomas said that the plan had to consider whether schemes would be viable at that level of affordable housing. He added that the current plan includes a significant number of sites that already have planning permission with agreed planning obligations to deliver infrastructure.

Visitor Levy Consultation

The cabinet approved a consultation on the introduction of a visitor levy in Cardiff, with the aim of introducing the levy from spring 2027.

Councillor Thomas stated that the levy is a tool for growth designed to benefit levy payers, whether that's the visitor or indeed the accommodation provider. He outlined proposals for areas of spend, such as the curation of the visitor experience, dealing with the costs of hosting events, and destination marketing. The final decision on the levy will be made in dialogue with the sector in the city, through a partnership forum.

Councillor Berman questioned what sort of administrative processes would be involved for businesses, and whether they would be able to engage effectively in the consultation with all the facts. Councillor John said that the Welsh Revenue Authority (WRA) is speaking directly with the sector and intends to ensure a system is in place that reduces the administrative burden and costs of implementation.

Councillor Lancaster raised concerns that a tourism levy could deter visitors, referencing surveys that suggested over 40% of potential visitors to Wales would either not visit, curtail their spending, or alter their plans. Councillor Thomas responded by saying he had absolute confidence in Cardiff's visitor offer, particularly for cultural tourists and those attending major events.

Councillor Peter Bradbury, Cabinet Member for Culture, Sport & Parks, said that Cardiff is not an outlier in proposing a visitor levy, and that it would add to the council's capacity to invest in services for both visitors and residents.

Local Heritage List

The cabinet approved the addition of a number of properties to the local heritage list, which supports the preservation of buildings with cultural or historic significance. The cabinet also approved a new structure for adding amendments to the list and noted the intention to use Article 4 directions¹ to restrict permitted development rights for demolition of locally listed buildings where necessary.

Councillor De'Ath said that the council was elected on a manifesto commitment to enhance protections for the city's heritage, particularly its working class heritage. He stressed that inclusion on the list recognises social, cultural, and architectural merit, but does not prevent demolition.

Councillor Thomas recalled the loss of the Splott University settlement, a building designed by Robert Schultz, and said that the heritage infrastructure often protects the houses of barons and lords, but not working class infrastructure.

Councillor Berman questioned whether the listing would bring much protection, using the Gaiety on City Road as an example of a building that had fallen into disrepair and been given permission for demolition. Councillor De'Ath responded that the point of the list is not to pickle something in aspect but to maintain as much of the historic fabric of the building as possible while allowing for redevelopment.

Councillor Lancaster raised the issue of compensation for landowners who are denied change of use or demolition of a building because of the list. Steve Ball explained that non-immediate Article 4 directions, which give 12 months' notice, do not give rise to compensation claims. He added that the council seeks legal advice before issuing immediate Article 4 directions and that compensation is only likely if there is hardship or specific financial loss.

Air Quality Management

The cabinet reviewed the annual progress report on local air quality management. Councillor De'Ath reported that there had been tangible progress on improving air quality in the city, with NO2 concentrations down by 36% since 2019. He noted that while there are no safe limits of air pollution, all monitoring stations are registering no exceedances in terms of poor air quality.

Councillor Berman welcomed the good news and asked about progress on helping people without off-street parking to charge electric vehicles at home. He also asked whether the council had investigated other potential hydro schemes similar to the Radar Weir scheme. Councillor De'Ath said that the council was waiting for national guidance on EV charging before looking at it seriously. He added that the council is always looking at what it can do to facilitate new projects and hasten the transition to net zero.

Councillor Lancaster said that it was important to capture air quality in Supplementary Planning Guidance (SPG)² in the next Replacement Local Development Plan, and that there seemed to be a lack of understanding as to why air quality is improving. Jason explained that improvements were due to electric buses and EVs, the removal of a lane of traffic on Castle Street, school streets, better emission standards for conventional vehicles, and the movement to hybrid working. He added that an updated clean air strategy would include source apportionment exercises to understand which vehicles are contributing most to pollution levels.

Councillor Bradbury asked how air quality within the city centre is affected by surrounding heavy industry. Jason said that larger industrial sites are permitted for their emissions and regulated by Natural Resources Wales. He added that wider monitoring stations across the city are not showing any exceedances.

Budget Monitoring

The cabinet reviewed the budget monitoring report for month six. Councillor Chris Weaver, Cabinet Member for Finance, Modernisation & Performance, reported that the council was projecting a £2.9 million overspend, which is lower than in recent years. However, he noted that children's services were facing an increase in their projected overspend due to above-inflationary rate increases in placements and a small number of very expensive, complex cases.

Councillor Berman expressed concern about the directorate overspend of just under £7.9 million and asked where the council was in terms of identifying in-year efficiencies and whether these would result in service cuts. Councillor Weaver responded that service areas were looking at in-year efficiencies, such as temporarily holding vacancies, and that any service changes would be consulted on through the budget process.

Councillor Lancaster noted that income from the Red Dragon Centre had fallen short by £1.2 million and asked how the revenue shortfall would be covered in future years. Councillor Weaver said that the council would bring forward its budget proposals in the early months of next year.

Treasury Management

The cabinet reviewed the treasury management mid-year report. Councillor Weaver said that the report sets out the position in terms of borrowing, investments, and the expected management of finances through the year.

Councillor Thomson picked up on an annex in the report showing that debt is rising quite dramatically over the next few years, and asked how manageable that increasing level of debt is and what impact it has on revenue provision. An officer explained that the maturity analysis reflects the council's agreed strategy of borrowing more short-term currently, given interest rates, with a view to taking out longer-term borrowing when interest rates return to a lower level.

Councillor Lancaster raised concerns about the potential for the Welsh Government to be unable to pass its budget, which could lead to emergency budget cuts and local authorities issuing section 114 notices³. Councillor Weaver said that the council was preparing for every eventuality and was confident that the parties within the Welsh Government would be able to come together and pass a budget.