Gwynedd Council has agreed a £16m plan to allocate capital funding towards schools, infrastructure and a sea defence project in Barmouth to protect 700 homes.

The Cabinet agreed to allocate the cash at a meeting on 13 October, which was told that since the council adopted its Asset Plan in July 2024, capital funding in excess of what had been included in the Local Government Settlement had been received, and a Cabinet decision was now required over its allocation.

Cabinet agreed to provide £1.49m to meet a funding gap in the North Promenade flood prevention project in Barmouth.

When the scheme was first considered, a 15 per cent contribution towards high-level costs of around £23m was needed for flood prevention work on North Promenade, an area where “over 700 homes are at risk of coastal flooding,” a report released ahead of the meeting said.

It added: “Following work to develop the scheme, the likely cost appears to be much higher and closer to £35m. While this work is ongoing and the exact figure is not final, we need to prepare for costs significantly higher than the original £23m.

“As the cost is not final, we should be trying to earmark a contribution towards a scheme of around £35m, which is £5.25m. As there is already £3.76m in the Asset Plan, a further £1.49m needs to be earmarked in this review.”

Cabinet also agreed £583k to meet a funding gap for the Ysgol Bontnewydd project. This had seen the Welsh Government announce an investment of £15m for the construction of an innovative and eco-friendly new school. However, cost rose to £17.67m, “higher than what was agreed and the total amount the Government is able to fund”, the report said.

Gwynedd needs to contribute £583,000 to be able to proceed, which is 35 per cent of the additional cost.

Several “technical factors” led to risings cost, including inflation over a longer time than originally expected, while a temporary school to move the children had been “more costly than expected”.

“The funding offer is still a great opportunity, with the Government continuing to fund 97 per cent of the cost and Gwynedd three per cent,” the report said.

They also agreed to provide £6.86m and £4.11m for elements of the rolling Sustainable Schools programme.

Cabinet also accepted a plan to de-commit to providing £3.5m from the council’s existing asset plan to contribute to the resources available to fund the above.

The report noted: “There is one project where we have not continued as a partner to the development with the health board and housing association continuing with a much smaller scale scheme, omitting the needs of several partners including the council, namely the Health and Care Hub – Canolfan Lleu.

“While we know the needs and demography of the population are likely to lead to the need for developments in care, there are currently no plans that are sufficiently mature to include them, and therefore, it is recommended that the £3.5m capital resources earmarked for the scheme be de-committed.”