Meetings

Commissioners received an update on the formal negotiations between Commission Management Side (CMS) and Commission Trades Union Side (TUS) on the pay framework for Commission staff as from April 2025. They noted the current position, including in relation to Industrial Relations and the budgetary impact as set out as part of the Commission Budget.

They agreed three core principles to guide the Commission’s approach to seeking final agreement on the future pay framework for staff, together with a Draft Management Offer, derived from those principles, that would form the basis of further negotiations with TUS with a view to seeking final agreement.

Commissioners requested a brief note be provided to set out the total amount of the change indicated by the proposals.

A further update would be presented to the March meeting of the Commission along with recommendations for approval.

Following the Commission’s in principle decision to make a cost of living payment in the current financial year, Commissioners were updated about a meeting between officials and the TUS which had taken place on 5 September. It was explained that the position had moved beyond what had been reflected in the papers and that the Clerk was requesting an opportunity for the Executive Board to respond to trade union requests for further information before agreeing the in-year payment.

Commissioners discussed a desire to prioritise responding to the needs of the lowest paid and reflected that over the summer period it had not been possible for full involvement in the processes to be achieved. They considered the implications of services that would be reduced, for example ICT support, training and interparliamentary activity and new activity that would not be supported as anticipated. They also expressed concerns about the impacts on the wellbeing of staff that would be caused by the cost saving measures. One Commissioner remained opposed to making a payment beyond the existing pay deal.

The Commission agreed that Officials continue negotiations with the collective Trade Union Side (made up of representatives from PCS, FDA, and Prospect) for a short period. Negotiation would be based upon the affordability of the payment and the impact that it will have upon staff and services to settle the dispute. Commissioners suggested that Ken Skates, as the relevant portfolio holder, be involved in the process if that would be helpful. They requested a brief note be prepared for Commissioners to take to their groups as an update about the steps being taken, and the Llywydd requested Commissioners provide feedback from their groups subsequently.

The Clerk set out that as Accounting Officer she would intend to write to the Finance Committee about the implications once the position was finalised as the variation in the use of funds would be significant.

Commissioners were updated on the dialogue between Officials and PCS Union representatives and work undertaken on the cost options relating to making an in-year cost of living payment to Commission staff in response to the PCS union’s request, as part of its national industrial dispute, for a payment of £1,500 to be made relating to the current financial year. The First Minister had written to indicate that seeking additional funding via a supplementary budget would not be supported.

He set out that the UK Government had clearly indicated that pay awards must be managed within existing settlements. As a result, Welsh Government had to make difficult budgetary choices to absorb this £1500 payment to its staff from within its existing budget, and he expected the Commission similarly to look to absorb the costs from the existing budget available to the Commission.

The Commission discussed the wider position and alternative approaches and decided in-principle, by majority with one Commissioner not being in agreement, to meet this PCS request subject to funding being found from savings in the Commission’s overall budget.

The Commission agreed that the Executive Board would take decisions in order to accrue the level of funds necessary to make such a payment, recognising that this would mean taking funds from the staffing budget and cutting most other currently uncommitted expenditure and that the consequence of such measures would have impacts on Senedd Members, directly and indirectly. 

They agreed that any offer would need to be on the basis of necessary funds having been secured by the Commission at the point of payment, which would likely mean staged payments.

Further monitoring and review would be necessary to provide additional information to the Commission.

The Commission also discussed the wider dialogue between officials and PCS Union representatives and agreed they would take final decisions on considerations of a cost of living payment and on the draft budget for 2024-25 in September.

Commissioners agreed that communications with Members about the situation and its implications would be important.

The Commission were informed of a request from Senedd TUS (PCS Union) to make a further cost of living payment to all Commission staff below Director pay grades.

Commissioners noted the background information relating to the request, agreed initial steps and that they would be kept informed of developments and associated options.

Commissioners agreed a letter to Finance Committee, to provide information in relation to Recommendation 7 of the Committee’s Report on the scrutiny of the 2023-24 Budget, about evaluating the effectiveness of the initiatives the Commission has introduced to mitigate the impact of cost of living pressures on staff.

Commissioners agreed a letter, which would be provided to Finance Committee, to deliver on a commitment to provide further information in two areas of recommendation made by the Committee in their Report on the Scrutiny of the 2023-24 Budget:

·         decisions relating to the future of the Colwyn Bay office and the Senedd presence in north Wales; and

·         seeking the views of Members to better understand the engagement work they wish to take forward.

Commissioners approved the proposed budget savings, as an outcome of the 2023-24 Budget Review, and the revised budget subject to final approval through the supplementary budget process. The approved budget reduction proposals would be encompassed in the Commission’s submission to the First Supplementary Budget for ’23-24. The measures would result in a revised overall budget increase of 3.4% compared to the currently approved budget which would have been a 4.1% increase, through reductions of:

–   £208k in the Estates and Facilities budget through implementing energy saving measures and cost reductions;

–   £107k in the ICT budget through robust renegotiation of contracts; and

–   £120k in the Commission’s Project Fund budget.

Commissioners noted the timeline for approval and laying of the 2023-24 First Supplementary Budget, and agreed that the finalised Supplementary Budget papers (Explanatory Memorandum and accompanying letter) be circulated to Commissioners in April for final agreement; and

Commissioners noted that further potential options for savings and efficiencies, would be considered as part of the medium-term planning for the 2024-25 Commission budget and the subsequent two years as part of the work to develop the Medium-term Resourcing Framework. These included:

§ reviewing Significant non-staff budget lines;

§ generating additional income;

§ reviewing the profiling factor to align pay budgets with anticipated staff levels; and

§ any further measures discussed in Plenary and not considered elsewhere.

In submitting the Commission 2023-24 Budget for agreement in November 2022, the Commission committed to an in year review to identify and propose measures to reduce the overall budget level for 2023-24, taking account of the wider economic context. 

Commissioners were updated on progress made to review the ’23-24 budget and deliberated areas being considered for budget reduction in 2023-24.

Commissioners noted the approach and progress relating to service level savings proposals, noting in turn that potential savings were emerging within the following areas:

–   Estates and facilities energy saving measures and costs,

–   Robust renegotiation of ICT contracts.

Commissioners noted the approach and progress relating to the corporate level savings proposal of reducing the Commission’s Project Fund.

Commissioners noted that the recommended options set out, if exercised or realised in full, would in aggregate result in savings of c.£435K, giving a reduced overall budget increase of 3.4% (against the first 2022-23 supplementary budget) a decrease from the 4.1% level originally agreed.

This reflected that difficult choices had needed to be made, and would result in reduced flexibility, for example to be able to respond to MS requests for additional activity or support.

Subject to final decisions to be made at the Commission meeting in March, the outcome of this work will lead to a draft 1st Supplementary Budget for 2023-24.

Commissioners also noted that further potential options for savings and efficiencies, would be considered as part of the medium-term planning for the 2024-25 Commission budget and the subsequent two years.

NDM8137 Ken Skates (Clwyd South)

To propose that the Senedd, in accordance with Standing Order 20.16:

Agrees the budget of the Senedd Commission for 2023-24, as specified in Table 1 of the Senedd Commission Budget 2023-24, laid before the Senedd on 9 November 2022 and that it be incorporated in the Annual Budget Motion under Standing Order 20.26(ii).

Supporting Documents

Report of the Finance Committee

Senedd Commission response to the Finance Committee report

Letter from Commissioner for Budget and Governance to the Finance Committee

The item started at 15.26

Voting on the motion under this item was deferred until Voting Time.

NDM8137 Ken Skates (Clwyd South)

To propose that the Senedd, in accordance with Standing Order 20.16:

Agrees the budget of the Senedd Commission for 2023-24, as specified in Table 1 of the Senedd Commission Budget 2023-24, laid before the Senedd on 9 November 2022 and that it be incorporated in the Annual Budget Motion under Standing Order 20.26(ii).

The result was as follows:

The motion was agreed.

NDM8124 Ken Skates (Clwyd South)

To propose that the Senedd in accordance with Standing Order 20.16:

Agrees the budget of the Senedd Commission for 2023-24, as specified in Table 1 of the Senedd Commission Budget 2023-24, laid before the Senedd on 9 November 2022, and that it be incorporated in the Annual Budget Motion under Standing Order 20.26 (ii).

Supporting Documents

Report of the Finance Committee

Senedd Commission response to the Finance Committee report

This item was withdrawn

Commissioners were updated on the progress of the 2023-24 Senedd Commission Budget following scrutiny by the Finance Committee on 5 October.

Commissioners agreed the Commission response to the recommendations raised in the Finance Committee Report, noted the report, and approved the Final Budget for 2023-24 to be laid ahead of the Budget Motion to be debated in plenary on 16 November 2022.

In doing so Commissioners agreed that the 2023-24 Final Commission Budget, include additional wording (“and interest received on working balances”) and that reference to this change be included in the response letter to the Finance Committee report on the Draft Commission Budget for 2023-24. This was to reflect the impact of increases in the Bank of England base rate.

They also noted a letter to Finance Committee, providing further information following the scrutiny session.

Commissioners were presented with the 2023-24 Draft Budget which highlighted changes since the 11 July 2022 Commission meeting. 

Commissioners considered the implications of the proposed reversal of the temporary 1.25% increase in Employer National Insurance rates from 6 November 2022 and the cancellation of the introduction of the Health and Social Care Levy tax in April 2023.

Commissioners approved the 2023-24 Draft Budget to be laid with revisions to reflect the proposed cancellation of the introduction of the Health and Social Care Levy tax in April 2023. This meant an increase in the Commission operational budget of 5.06% between 2022-23 and 2023-24 (3.8% excluding Senedd Reform), and the increase in the overall budget of 4.06% between 2022-23 and 2023-24; a total budget of £67.642 million.

The Commission also noted the Finance Committee’s statement of principles (no change from 2019) and the letter sent from the Minister for Finance and Local Government to the Chair of the Finance Committee.

Commissioners discussed the 2023-24 draft budget strategy to decide on their approach to setting out the finances of the Commission in the context of preparing for Senedd Reform and other pressures. They reflected that this context would require some agile thinking to avoid detrimentally impacting Commission provided services.

Commissioners agreed Model B as the basis for the financial information presented in the draft budget document, and Option 3 for its preferred budgetary approach to any additional costs identified as relating to Senedd Reform for 2023-24 and following the agreed review of existing capacity. The approach would be to include any net additional costs as a ring-fenced contingency line; only to be used for Senedd Reform purposes, if needed.

Commissioners also agreed that the 2024-25 and 2025-26 staff and non-staff budgets will reflect pay award and inflationary increases, that costs associated with Senedd Reform would continue to be included as ring fenced amounts in future, and that in 2024-25 and 2025-26 Senedd Reform costs would reflect the staffing costs that are expected to commence in 2023-24 and capital costs only.

This would mean that any additional resource/staffing costs e.g. which may commence in 2024-25 or 2025-26, are not included. However, additional narrative would be included within the budget document to support these additional costs, to explain the uncertainties inherent in the figures, to explain why certain costs are not included and to note when these future resource/staffing costs for 2024-25 and 2025-26 will be known with more certainty.

The Commission draft budget will be laid and published in accordance with the required budget timetable.

Commissioners considered background information to inform their thinking around preparation for its 2023-24 budget, and noted pressures which are likely to impact.

Further consideration is anticipated to take place in July. The Draft Budget will be presented to the Commission at its September meeting.