THE revelation that a council which has paid more than £4 million on a six-year pay row left almost a third of its capital budget unspent in the last financial year has been called "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 – meaning 32 percent, or £37.6 million, of the entire capital budget went unspent.

The capital budget includes specific costs for updating and maintaining key assets and implementing major new projects.

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Leader of the council’s Plaid Cymru group, 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.”

South Wales Argus:

Cllr Colin Mann

The report shows the council underspent in every sector apart from public housing stock, where the council spent their budget allocation.

The highways department 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 spokesman for Caerphilly council 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.”