Agenda item

To ratify the recommendations arising from the Scrutiny Panels in relation to the 2025/26 Draft Budget and MTFS 2025/30.

Please note that Appendices 1 to 4 were previously published in November 2024 and are provided for reference. Appendix 5 was unavailable at the time of publication on 10^th January 2025 and will be published shortly afterwards as part of a supplementary agenda pack.

Appendix 1 – Forecast Budget Pressures

Appendix 2 – Summary of new proposed savings and management actions

Appendix 3 – Summary of proposed changes to the Capital Programme

Appendix 4 – Report to Nov 2024 Cabinet – Draft 2025-26 Budget and 2025/30 Medium Term Financial Strategy

Appendix 5 – List of Comments and Recommendations from Budget Scrutiny Process

Document A – Scrutiny Role

The Chair stated that Budget Scrutiny will be chaired by the Vice Chair (Councillor Connor).

The Committee was asked to ratify the recommendations arising from the scrutiny panels regarding the draft budget for 2025-2026 and the Medium-Term Financial Strategy (MTFS) 2025-2030. Appendix 5 outlined the list of comments and recommendations from the budget scrutiny process. The process involved reviewing each individual panel's recommendations and any new information received, with the option to amend or add new recommendations based on that information.

During the scrutiny process, the Committee major capital programmes, with a focus on savings, including digital transformation savings. It was clarified that a digital transformation saving was rated "red" as it was not delivered at the time. One recommendation from the panel related to reducing placement costs through effective market management, with £2.2 million allocated for this purpose. The panel requested further details on the mechanisms to be used and any lessons learned.

There was also a discussion about the Pendarran site, specifically regarding renting out the main house with kitchen facilities. Concerns were raised about the deep cleaning required after rental to meet health and safety standards, especially around allergens like peanuts. It was explained that because of the site's use as an educational facility, the kitchen could not be rented out without ensuring the absence of allergens, which was a more complex process than standard cleaning. A recommendation was made to consider all options for income generation at the Pendarran site, ensuring that necessary health and safety standards were met. Another point of discussion was the reduction of placement costs for young people. A concern was raised about ensuring that young people under 25 could continue their education without disruption. The Committee sought clarification that support would remain in place to help these individuals complete their education and ensure their well-being and future employment prospects.

The Panels reviewed the budgetary proposals for the three directorates. It was noted that the budget papers did not list any specific budgetary pressures. A request for further information was made, especially regarding the plans for tackling health inequality, as the Committee was uncertain about the direction of these proposals. The Committee asked for this information before the 30th.

Concerns were raised about the lack of details regarding certain proposals, especially the Council Tax Reduction Scheme. Councillors inquired about the opportunities for scrutiny and whether there would be a process for members to reject proposals if they were not suitable. They asked for details on the scrutiny process, including the number of cabinet meetings involved and when the proposals would be reviewed.

The response provided clarified that the savings proposal for 2026-2027 would go through the decision-making process either in early 2025-2026 or as part of the budget for 2026-2027. The Committee was assured that there would be an opportunity for scrutiny of the proposals. Regarding the capital programme, the Committee had received responses about the Alexandra Palace project and capital support for digital solutions. The rationale behind the capital programme was discussed, and while the response on Alexandra Palace was thorough, the information on digital solutions was limited. The Committee confirmed that they were satisfied with the further information provided about the proposed reduction to the capital support for digital solutions.

The final feedback from the scrutiny chairs emphasised the difficulty of conducting scrutiny without full details. They stressed the need for clearer in-year budget monitoring as part of the scrutiny process. It was suggested that quarterly reports on finance, risk, and performance be reinstated for all the panels and chairs to ensure proper oversight moving forward.

RESOLVED:

That updates be requested on a number of items in advance of the next meeting on 30^th Jan 2025 including:

-       Housing Related Support Contracts

-       Council Tax Reduction Scheme

-       Integrated Connected Communities

-       Housing – Legal Disrepair

-       Leisure Services & Health Inequalities

That recommendations and requests for future updates be added/amended on a number of items including:

-       Connected Care Review

-       Day Opportunities – Commissioning Review

-       Osborne Grove Nursing Home

-       Pendarren income generation

-       Market management in children’s social care

-       Decentralised Energy Networks

-       Disuse of Council-owned buildings

That the list of recommendations be approved for submission to the Cabinet, subject to possible further additions to this list at the next Committee meeting on 30^th January 2025.