The leader of Caerphilly’s Plaid Cymru group has described a £37.6 million capital underspend by the council as ‘hugely embarrassing.’
Figures in Caerphilly County Borough Council’s annual performance report show the council had a capital budget of £116.24 million in 2018-19 but only spent £78.62 million – an underspend of 32%
The capital budget includes specific costs for updating and maintaining key assets and implementing major new projects.
Plaid Cymru group leader Cllr Colin Mann said: “This is hugely embarrassing.
“The council should not be raising money for schemes in the knowledge that it is very likely that the money will not be spent – that’s raising money from council taxpayers under false pretences.
“And these underspends have been happening every year for several years.
“We shouldn’t be raising money unnecessarily from already hard-pressed council taxpayers just to put it in the bank. It is clear that much better planning on major projects is needed.
“This is another example that Caerphilly is run poorly and is a failing authority – yet the Welsh Government just sits by and does nothing.”
The report shows the council underspent in every sector apart from public housing stock, where the council spent their budget allocation.
Highways saw the biggest underspend. Only £11 million of the £17 million budget was spent.
Other areas to see an underspend include education, private housing, social services and community and leisure.
A council spokesman said: “There are numerous reasons for this level of underspend, as can be expected in budgets linked to large capital projects.
“There can be unforeseen delays to approved schemes which are totally beyond our control or money can often be ring-fenced for particular projects that need to be carried over to future years.
“We have successfully delivered many major capital projects over recent years and we will continue to review and target significant investments as part of our place shaping agenda going forward.
“The fact remains that we have an excellent track record of managing and delivering major schemes and no concerns have been raised by our external auditor regarding our approach.”
Labour councillor Jamie Pritchard, who is chair of the council’s policy & resources scrutiny committee, said committee members are “frustrated with the level of reserves being held”.
He added: “I’ve called for quick action to ramp up capital building works.
“Our committee wants to see every possible penny in reserve, wherever prudent, being put to good use. This means no unnecessary delays and concrete proposals coming forward as a matter of urgency. I’ve now been assured that a report on reserves will be coming forward to consider so I’ll ensure our scrutiny committee debates this fully and makes effective recommendations.”
Committee vice chair Cllr Gez Kirby described the underspend was “disappointing” and said: “We welcome Plaid Cymru’s recent support for our call that wherever it’s prudent and will make a positive difference, our capital budgets – on highways, education, social services, community and leisure, and so on – are spent to invest in improving our communities’ daily lives.”