Meetings

Commission considered proposals for meeting the £315K savings target for the 2024-25 budget, which was to be identified prior to the start of the 2024-25 financial year.

Commissioners discussed the relative impacts of proposals relating to elements of non-staff costs and vacancy management to achieve the savings.

Commissioners approved the proposals for meeting the target savings, subject to an adjustment to maintain the funding level provided to support Members’ International and EU engagement.

The Finance Committee had written to the Commission by way of update to their Review of the Statement of Principles, inviting further consideration of issues relating to the Senedd’s Supplementary Budget procedures.

The Commissioners agreed their letter of response, which set out observations on the processes for both supplementary budget and annual budget and made suggestions as to how some of these could be addressed, for the Committee’s consideration.

Commissioners noted the letters to Finance Committee on the Cost of Living payment, and with further information following the scrutiny session, as circulated out of meeting (on 3 October 2023 and 10 October 2023 respectively).

Commissioners were updated on the scrutiny of the 2024-25 Senedd Commission draft Budget by the Finance Committee on 5 October. Commissioners agreed their response to the recommendations raised in the Finance Committee Report, and approved the Final Budget for 2024-25.

The Budget narrative had been amended on the Commission pension costs on page 9 as requested by the Finance Committee and Commissioners noted the recommendation to address the additional Commission Pension cost through Supplementary budget request.

The Final Budget document for 2024-25 would be laid on 8 November 2023 with the Budget Motion to be debated in plenary on 15 November 2023.

Commissioners were presented with the 2024-25 Draft Budget for agreement. Changes to the budget since the 6 September Commission meeting were highlighted. These included the operational and total budget requirement for 2024-25, ring-fenced provisions for Senedd Reform and Ways of Working programme costs, a minor change to the baseline staffing budget, consolidating a payment to be made to support staff and the Members’ Pension scheme.

A further update was provided including in relation to areas where it was known change could be expected but where detail would not be available within the timing parameters of the requirements on the Commission to lay the budget. These included work to be undertaken by the IRB on payments to MSS/MS, and support staff salaries. It was recognised that these would potentially have to be dealt with through the supplementary budget processes once the detail became available if the budget assumptions were insufficient.

Commissioners discussed the significance of having to balance the delivery of substantial change programmes alongside the challenge to provide appropriately for BAU and requested further information be provided to the next meeting to inform prioritisation considerations and policy decisions in regard of income generation.

Commissioners also requested brief notes to set out analysis of the Welsh Block and to provide information about contract management which had led to cost savings, which had been discussed in relation to photocopiers.

Commissioners 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 approved the 2024-25 Draft Budget to be laid, subject to the adjustments discussed.

Commissioners considered work undertaken as preparation for the final draft Commission budget for 2024-25, which would be presented for final decision at the meeting on 25 September.

Commissioners discussed and provided views in relation to:

•         staffing costs and cost of living crisis impact;

•         the operational and total budget requirement for 2024-25, budget pressure cost reductions and savings required to be identified through the service planning process and corporate review;

•         the Medium Term Resourcing Framework (MTRF) and future year budget estimates;

•         ringfencing costs relating to programmes which respond to requested work to be undertaken by the Senedd and the Finance Committee i.e. Senedd Reform, Ways of Working, and any future Cost of Living Payment;

•         the Determination and support for the Remuneration Board.

The Clerk set out that the recommendation of the Executive Board was not to incorporate funding for outcome of a future pay deal, based on the current PCS pay negotiation position, in the core budget. The Executive Board recommended accelerating discussions about the next pay deal. Commissioners confirmed the bases for the development of the final draft Commission budget for 2024-25, including preparation on the basis of the existing pay deal. The final draft budget would be reviewed and agreed at the next meeting and laid thereafter in accordance with the requirements of Standing Orders. They agreed that it would be helpful to write to the Finance Committee to provide additional information for the scrutiny of the budget.

Commissioners considered a number of issues that were likely to impact Commission finances during 2024-25 and provided direction that proposals in these areas should be developed as part of the 2024-25 draft budget. These included:

·         Senedd Reform

·         Ways of Working programme (detailed projections)

·         Commission’s Pay Strategy budget impacts

·         Non-pay considerations.

Commissioners discussed the challenges of operating in a fiscally tight environment with difficult choices needing to be made, balancing the need to deliver existing services, meet contractual obligations, and respond to new demands. The Commission’s continuing positive position excluding compulsory redundancies was referenced.

They agreed to consider the draft budget alongside the  draft Medium-Term Resourcing Framework, work which would bring together draft Medium-Term Financial and Workforce Plans, as part of meeting the timescales required by the Standing Orders.

Commissioners also noted that any budgetary impact of estimated future energy costs; reviewing estates, ICT and project fund budgets; any changes to employer pension contribution costs; and the annual review of Determination Costs would be set out in the 2024-25 Draft Budget.