Agenda and draft minutes

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Cabinet Member Ben Callard introduced the report and answered the members’ questions with Jonathan Davies, Jane Rodgers, Tyrone Stokes, Will McLean, Craig O’Connor andPeter Davies:

What is the timetable for the recovery plans for the three largest deficit schools and how will progress be monitored?

The recovery period is expected to be 8-10 years, aiming for incremental change to avoid drastic impacts. The Council is working closely with the schools, focusing on sustained surplus periods to recover deficits. Responsibility for school budgets lies with governing bodies, and the Council is supporting restructuring and increasing funding.

Are there any opportunities to reduce the reliance on external legal spend in children's services, or is this largely unavoidable? Is there a link to the £332,000 reduction from Welsh Government?

The increase in external legal fees is due to specific complex cases requiring external barristers, which is unavoidable and expected to be one-off. Some pressure will remain, and additional costs are included in next year's budget proposals. The reduction in the Welsh Government family support grant is not connected to the overspend in legal services. The legal overspend is due to volatile, high-cost cases, not grant changes.

What is the recovery plan for housing, and when is the service expected to return to budget?

The housing budget is in transition, with overspend due to delayed opening of Severn View and high costs for property handovers. Severn View is now fully operational, which should help recuperate costs, and processes around handbacks are being reviewed. The delayed opening of Severn View and additional costs for repairs after tenant handovers contributed to the overspend. Full savings are expected next year as occupancy is now established.

Does the Council finance the school deficits over the eight-year recovery period, and where is this reflected in financial reporting? How do we manage the fact that the deficits continue to increase, and are all schools given eight years?

The Council carries the school deficits on its balance sheet as a negative, which means it foregoes income on those balances. The situation is expected to worsen before improving, and the eight-year recovery period is mainly for comprehensive schools to allow a stable transition. The responsibility for school budgets lies with the governing bodies, and incremental changes are being made to address deficits.

What specific steps are required to bring the school reserves deficit down?

The main cost driver is staff costs. Schools may need to restructure to realise savings, and the Council is increasing funding to support this. Any reduction in staff is to be handled sensitively and at a controlled pace. For high-risk primary schools, tripartite meetings with finance, school improvement, inclusion, and HR colleagues are held to analyse cost drivers and put in early steps to address expenditure. Early decisions on savings have a significant impact, and the Council is working with schools to arrest and improve deficit positions.

Is the headline surplus of £1.1 million more cosmetic than structural, since it is largely driven by grants, financing movements,  ...  view the full minutes text for item 3.

Cabinet Member Ben Callard delivered a presentation, introduced the report and answered the members’ questions with Will McLean and Debra Hill-Howells:

With a proposed 5.95% council tax increase, meaning over 30% rise in recent years, is it reasonable to ask residents to bear this burden? Are we doing enough on efficiency and spend control, and are we prioritising correctly between services and tax burden?

Increasing council tax is not an easy choice, and there are no easy options when setting the budget. The Council can either reduce services or increase tax to maintain or improve them. The draft budget includes over £2 million in service efficiencies, and over £9 million in savings were delivered in the last year, with tens of millions saved in previous years. Residents express a desire for better services, especially in care and schools, and the Council aims to protect these. The cumulative council tax increase reflects high inflation and external pressures, but the alternative – cutting vital services – is considered worse. Councillors themselves pay council tax, and the decision to raise it is made reluctantly to protect services and vulnerable residents.

Is it a false dichotomy to present the choice as either high council tax increases or service cuts? Shouldn’t the Council focus on transforming service delivery, as businesses do, rather than simply increasing costs?

The Council has been transforming how it delivers services, with over £9 million in savings in the last year and more than £50 million over the past decade. Transformation includes investing in homes for looked-after children and reablement strategies in social care, targeting resources efficiently. Many businesses would leave the market if faced with the legal obligations councils have. The draft budget balances service demands with targeted investment and measured efficiency, continuing the Council’s transformation.

How can the Council justify council tax increases that are 10 percentage points above UK inflation rates over the last five years?

Council tax is a fixed cash sum, not a percentage, so it must increase to cover rising costs, especially staff wages, which are a major expense. Unlike income tax, which rises automatically with pay, council tax must be raised explicitly. The Council faces growing demand and complexity in services, such as an aging population and additional support needs in schools. The extra income from Welsh Government and council tax goes directly into services. Despite the large numbers, the Council believes it delivers value for money and will continue to do so.

Does this budget ensure we can address all potholes at speed? Is there sufficient capacity for speedy repairs?

The budget invests significantly more in pothole repairs, but the backlog is over £60 million, so not all potholes can be fixed. Capacity is also a structural issue; even with more funding, contractor and internal resources can't be expanded overnight. Reporting potholes helps to prioritise urgent repairs.

Does temporary pothole repair (cold fill) cause greater long-term costs, and is it counterintuitive?

Temporary patching is used for immediate safety concerns. While it may seem  ...  view the full minutes text for item 4.

Noted.

·        P&O Action List 18^th November 25

·        P&O Special Action List 3^rd Dec 25

·        P&O Action List 27^th Jan 26

Noted.

·        18^th November 2025

·        3^rd December 2025 (Special)

·        27^th January 2026 (Special)

•           18th November 2025

•           3rd December 2025 (Special)

•           27th January 2026 (Special)

The minutes were agreed.