Council that plans to shut cultural venues has huge cash reserves, says Tory MS

Martin Shipton

A Tory MS has queried the apparently high level of cash reserves held by a council that says it must withdraw funding from two much-loved cultural facilities.

Caerphilly County Borough Council says it can no longer afford to fund the iconic music venue Blackwood Miners’ Institute or Llancaiach Fawr, a 16th century manor house at Nelson.

South Wales East MS Laura Anne Jones has expressed serious concerns about the size of the council’s cash reserves, which she says total nearly £220m, while nearby Monmouthshire County Council, also in her region, operates with reserves of just £20m.

Ms Jones says she will urge the Cabinet Secretary for Local Government and other Labour MSs to encourage Caerphilly Council to allocate a portion of its reserves to support vital local cultural amenities like Blackwood Miners’ Institute and Llancaiach Fawr.

She said: “Caerphilly Council is currently holding nearly £220m in reserves while critical cultural facilities are being left to deteriorate. This situation highlights the ongoing challenges facing the arts sector in Wales under the current Welsh Labour government.

“It is concerning that Caerphilly council has such a large sum idle in a bank account when it could be utilised to benefit the local community. This represents a substantial opportunity to invest in arts and culture, which are vital to our society.”

Community 

Ms Jones said she plans to raise the issue in the Senedd this week, aiming to advocate for the effective use of public funds for community enrichment.

A report to Caerphilly council’s cabinet in February 2024 stated: “Reserves are an essential part of good financial management. They help councils cope with unpredictable financial pressures, help them smooth the impact of known spending requirements over time, and help to fund any in-year overspending.”

The report went on to provide estimated figures for the amount of usable reserves likely to be held by the authority.until 2026.

In March 2023 the council’s usable reserves stood at £220.032m. In March 2024 they were expected to be £184.413m. By March 2025 they were forecast to be down to £114.354m and by March 2026 to be £87.663m.

Committee meeting

The report refers to a joint scrutiny committee meeting that took place in January 2024, during which a councillor had asked whether the high level of reserves held was due to “slow” spending of reserves that had been allocated for specific purposes. Councillors were told that reserves were being used for the purposes they had been set aside for, and this would lead to the forecast reduction in them over the next three years.

Cllr Eluned Stenner, Caerphilly council’s cabinet member for finance said: “Reserves are an essential part of good financial management and it is important to stress that reserves can only be used once and cannot be relied upon to set balanced budgets in the medium to long-term.

“During the last two years the council has already used £26m of its reserves as a temporary measure to help balance its budget. However, this is not a prudent or sustainable approach moving forward.

“The council’s usable reserves as at the March 31 2024 totalled £192.3m. The vast majority of this money, almost £176m,, is ringfenced or has been set aside for specific projects and initiatives. This includes spend in areas such as housing, schools, highway improvements and new capital projects.

“This leaves a balance of £16.4m which is uncommitted. This sum is held as a contingency to deal with unplanned or unavoidable cost pressures such as a spike in demand for services or emergencies such as flooding. This contingency represents just 3.7% of the council’s 2024/25 net revenue budget and to put this into context this would only fund revenue expenditure for a period of two weeks.

“Through our careful financial management we have been able to establish reserves for a range of purposes to support investment in the council’s infrastructure, to lever in extensive external funding, and to fund a wide range of programmes and initiatives that support delivery of the council’s key priorities.”

Meanwhile the trade union Unison has demanded that the under-threat Llancaiach Fawr manor house, seen as one of Wales’ top-rated historical venues and a popular destination for educational school trips, be spared from closure.

Tours

Llancaiach Fawr Is known for its living history tours that give visitors a journey back in time. But the council intends to close it down as it looks to save more than £45m over the next two years, despite a public outcry and a Unison campaign to avert its demise.

The venue, employing 34 staff, has played a key role in educating thousands of students about Welsh history and heritage.

Now the union has organised a public meeting on Saturday October 5 to show opposition to the closure. Unison is calling on local residents, historians, educators and anyone else who values the property to make a stand against the plans.

Unison Caerphilly branch secretary Lianne Dallimore said: “Closing Llancaiach Fawr would mean the end of an era.

“Not only is the museum a vital cultural and educational centre for the community, it also provides employment for a dedicated team of staff.

“This public meeting is a chance to show the strength of feeling and challenge the council to do everything possible to save this historic building.”

The meeting to save Llancaiach Fawr will be held at 11.30am on October 5 at the museum on Gelligaer Road, Nelson, CF46 6ER.

Unison held protests outside the council headquarters at Ty Penallta in Hengoed ahead of scrutiny and cabinet meetings to discuss the closure last week.

The council currently provides a subsidy of £485,000 a year to run the venue, which was used as a location for Doctor Who in 2018 when actors Jodie Whittaker and Bradley Walsh took part in filming at Llancaiach Fawr.