Meetings

Commissioners were updated on the 2025-26 financial position. A Supplementary Budget decreasing the overall budget by £1.042million and the net cash requirement by £0.542 million was recommended, as well as a reallocation of £4.182million of spend from revenue to capital.

Commissioners agreed to submit a Supplementary Budget for inclusion in the Welsh Government’s February 2026 budget motion. They noted and approved the Explanatory Memorandum, and that 

-      the second Supplementary Budget reduce the budget ringfenced for the Remuneration Board’s Determination by £0.460 Million in addition to the reduction for National Insurance funding;

-      the second Supplementary Budget reduce the AME budget for the valuation of the Members Pension scheme by £0.500million, from £1.000million to £0.500million; and

-      £4.182million of ‘revenue’ budget be re-classified as ‘capital’ to more accurately reflect expenditure expectations (noting that Senedd works are subject to separate approval).

Commissioners confirmed they were content for the capital / revenue adjustment to reflect the outcome of the discussion on the rates refund (it assumed £644k would be retained to accelerate Senedd works); and noted the draft letter to the Chair of the Finance Committee. They delegated the final agreement of an additional explanatory letter and adjustments to the budget EM to the Llywydd, to reflect the decision around the refund.

The draft Supplementary Budget and the letter would be provided to the Finance Committee and subsequently the Explanatory Memorandum would be laid and the revised budget figures included in the WG supplementary budget in February 2025.

Commissioners noted a letter from the Finance Committee providing an update on discussions with the Cabinet Secretary for Finance and Welsh Language on the review of the Budget process protocol and Supplementary Budget procedures.

Commissioners were advised that the Commission had recently been notified that an appeal undertaken by Avison Young to correct the rateable value of the Cardiff Bay estate, backdated to 2017, had been successful and a refund was due of £3.6m in total.

They discussed the options and advice relating to the refund and agreed to support retention of £644k of the total refund due (£3.603million) to complete specified priority works on the Senedd building before the end of the financial year.

Commissioners agreed a letter to the Finance Committee providing further information in relation to the Committee’s recommendations made in its Report on the Scrutiny of the Draft Budget 2025-26. It is anticipated that the Committee will publish the letter.

Commissioners were presented with the Supplementary Budget Request 2025-26 Explanatory Memorandum, for an uplift in budget as a direct result of the change to the rate of Employers’ National Insurance contributions from 13.8% to 15%.

The Commission noted that the other Directly Funded Bodies are also making requests for the full cost of the change.

Commissioners discussed and approved the request to:

·         increase the total budget by £0.773million to £84.618million; and

·         increase the Cash requirement to be issued by the Welsh Consolidated Fund by £0.773million to £80.348million.

and noted:

·         the increase in the total budget is split across the individual budgetary lines for which the Commission has responsibility. As the changes are staff cost changes, they impact across all the budgetary lines which carry staff costs within them.

The Explanatory Memorandum will be published as part of the Supplementary Budget process.

Commissioners noted the Engagement Strategy for the Commission’s Annual Budget, to ensure Member participation and voice in the Budget development process.

The Finance Committee published their Report on the Scrutiny of the Draft Budget 2025-26 in October 2024, making 17 recommendations to the Commission, to which the Commission provided an initial response.

A further update is being provided to address a number of the Committee’s recommendations.

Commissioners agreed the draft letter and annexes.

The letter and annexes will be provided to Finance Committee who will publish as part of their committee meeting papers, apart from the Communications and Engagement Plan (Annex 3), which will remain restricted.

NDM8729 Hefin David (Caerphilly)

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

Agrees the budget of the Senedd Commission for 2025-26, as specified in Table 1 of the Senedd Commission Budget 2025-26, laid before the Senedd on 13 November 2024, and that it be incorporated in the Annual Budget Motion under Standing Order 20.26(ii).

Supporting documents

Finance Committee report – Scrutiny of the Senedd Commission Draft Budget 2025-26

The item started at 16.09

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

NDM8729 Hefin David (Caerphilly)

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

Agrees the budget of the Senedd Commission for 2025-26, as specified in Table 1 of the Senedd Commission Budget 2025-26, laid before the Senedd on 13 November 2024, 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.

The Commissioner with the budget and governance portfolio provided an update on the progress of the 2025-26 Senedd Commission Budget following scrutiny by the Finance Committee on 3 October.

The Commissioner proposed responses to each of the Committee’s recommendations, which had been published on 22 October. Commissioners agreed the content of their response to the report.

Commissioners also approved the Final Senedd Commission Budget for 2025-26, without the £0.456m additional funding requested via the Welsh Government’s First Supplementary Budget 2024-25, which had been agreed by the Senedd during the plenary debate on 22 October.

Commissioners agreed that further, more detailed benchmarking of structures with peer bodies would be  undertaken in due course, at a point when it would not redirect resource away from Senedd Reform work or election preparations and when a ‘steady state’ on the staffing establishment had been achieved in relation to supporting an enlarged Senedd.

One Commissioner highlighted their group’s continued position of opposing Senedd Reform and associated costs.

The Final Budget document for 2025-26 would be laid on 13 November 2024 with the Budget Motion to be debated in plenary on 20 November 2024.

Commissioners considered the most recent work on the draft Budget 2025-26, with changes since their previous meeting.

The discussions reflected that the draft would be the first year of the significant and permanent upward movement in Commission budget due to Senedd Reform as the organisation increases staffing to prepare and completes structural adaptation to the estate to accommodate the enlarged Senedd and support in readiness for 2026-27. They reflected on the historic nature of the change.

Although ringfenced at present, Senedd Reform costs would move into ‘business as usual’, as anticipated by the RIA for future years when it was published in 2023.

Commissioners approved the 2025-26 Draft Budget to be laid and the letter to Finance Committee. They also noted the Finance Committee’s statement of principles, which were addressed within the letter to the Committee, and the letter sent from the Minister for Finance and Local Government to the Chair of the Finance Committee.

In agreeing the Draft Budget, Commissioners noted that following two years of budget reductions and savings as a result of cost of living payments, and noting the feedback from Members received as a result of temporary pauses on international travel, training support and the concern for the well being of staff, no further savings were identified without permanent reductions in services provided to Members, due to the level of programme and change delivery for 2025-26.

The MTRF principles mean the Commission has in place processes which ensure that the organisation would consider savings and efficiencies on an ongoing basis as it makes operational decisions.

Commissioners approved the increase in the operational budget of 20.96% between 2024-25 and 2025-26 (11.08% excluding Senedd Reform, Ways of Working and non-cash budgets), and the increase in the overall budget of 16.77% between 2024-25 and 2025-26. Taking into account the known RIA additional costs expected in 2025-26, this increase in budget is 11.56% overall (10.80% RIA adjusted for pay awards and inflation).

Commissioners also discussed the process of engagement with Members which had been undertaken, and wished to expand on that in future years as the Commission budgets to provide the property, staff and services required for the Senedd's purposes. It was noted that enhanced engagement with Members could be undertaken as part of the annual process, as directed by the Commission, once the MTRF has been updated each Spring

Oral item

The Commissioners noted an update on the latest position in the ongoing pay deal negotiations, and the context in relation to the Commission’s budget, following a letter sent to TUS on 9 September and a response received on 18 September. They anticipated the pay award being taken forward.

Commissioners noted the progressed position of 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.

TUS had responded to the formal pay offer in 26 June asking to the Commission to increase its offer.

Commissioners considered options that would ensure that the necessary resourcing for the preferred option would be built into the final draft budget for 2025/26, which had to be agreed by the Commission in September 2024. The budget required for an agreed pay deal would form part of the Commission’s annual budget, and be scrutinised by Finance Committee.

They considered the further options presented and agreed the recommended option 3 - 3.5% in Y1, 3.25% in Y2 and 3% in Y3. This responds to the TUS ask to increase the Commission offer, yet is prudent from a budgeting perspective. The tapering both recognises and mirrors the projected fall in inflation, providing a pay settlement and certainty for the Commission for 3 years.

Commissioners considered a high-level outline of the early draft budget 2025-26, based on the budget planning assumptions agreed by the Commission at the 29 April meeting.

The outline included an early indication of budgetary requirements, set out emerging issues along with a clear indication of further work required.

Key emerging issues include potential level of growth across the budget including BAU; the gap in project funding and the emerging list of life cycle maintenance replacement required for 2025-26 which is still being considered along with the timing of the supplementary budget.

The information provided reflected the uncertainty created by the delay to the Welsh Government 1st Supplement Budget for 2024-25 Motion, which would likely mean the outcome of the process would be unknown at the point the Commission is required to lay its draft budget. The consequences of this were anticipated to be that the Commission may need to consider presenting a budget that takes account of this uncertainty, and would likely be unable to conclude pay negotiations until late Autumn.

Commissioners noted the update on the 2025-26 budget preparation and agreed that they were content for the detail of the budget to be developed as outlined, over the summer.

The agreed draft budget will be laid in line with the requirements of Standing Orders.

Commissioners were provided with an outline of a number of issues for consideration, which would inform development of the 2025-26 budget to reflect the priorities of the Commission for the final year of the Sixth Senedd.

Commissioners discussed the items that are likely to impact on its finances during 2025-26 and considered the approach to take to address this impact, specifically in the 2025-26 draft budget.

Commissioners agreed that the budget proposals should be further developed and presented in the 2025-26 draft budget as proposed, in particular, in relation to:

•          Senedd Reform budgets being reviewed to reflect the most up-to-date position,

•        detailed budget projections for the Ways of Working programme ,

•          Commission’s Pay Strategy budget impacts,

•          other non-pay considerations, including project costs and the continued absence of a contingency budget,

•          delivery of the Commission’s statutory requirements and corporate plan, recognising those ambitions need to be set mindful of the broader public sector funding context, and

•        impact of the reviews of the Independent Remuneration Board into the shape of service delivery preparation for the Seventh Senedd.

Commissioners confirmed they were content with the approach to the next stage of budget preparation work.

Commissioners also noted that any budgetary impact of estimated future energy costs, reviewing estates, ICT, and project fund budgets, and the annual review of Determination Costs, would be set out in the 2025-26 Draft Budget.