Agenda and minutes

Apologies were received from see above

Members of the Overview and Scrutiny Committee are asked to consider whether they have an interest in any matters on the agenda and, if so, to formally declare that interest.

There were no declarations of interest.

A period of 30 minutes has been set aside for members of the public to ask questions on matters considered at the last meeting and set out in the minutes or on the agenda for tonight’s meeting.

There were no public questions.

Questions are invited from Elected Members about items on the agenda. 15 minutes will be set aside for Member Question Time, if required.

There were no Member questions.

Minutes from the meeting held on 26^th November 2024 are attached.

That the minutes of the meeting held on 26^th November 2024 be approved as a correct record and signed by the Chair.

Report and appendices of the Cabinet Member for Finance and Transformation.

A report from Councillor Thorpe was submitted ahead of the meeting. However, due to apologies from Councillor Thorpe, the Leader, Councillor Eamon O’Brien, gave a brief overview of the reports.

Councillor Eamon O'Brien and Neil Kissock provided a comprehensive overview of the budget report, emphasizing the significant challenges and efforts involved in setting the budget within the context of global economic pressures and local government constraints. They acknowledged the hard work and dedication of the team in managing cost pressures and demand for services.

Councillor O'Brien began by addressing the initial budget gap, which has been significantly reduced through diligent efforts. However, he noted that a substantial gap remains over the medium-term financial strategy period. Closing this gap will require a thorough review of all budget lines, ensuring value for money, and delivering income and growth targets. He emphasized that this process is neither quick nor easy and will involve looking seriously at how reserves are utilized.

Neil Kissock discussed the strategic use of reserves in detail. He highlighted that reserves should be used as a last resort to cover shortfalls and unexpected challenges. He outlined how reserves have been used up until now and how they are planned to be used over the next few years. This approach is intended to provide confidence that the financial position is sound, although he acknowledged that there are risks associated with relying on reserves.

A significant portion of the report was dedicated to the proposed Council Tax increase of 5%. This increase is deemed necessary to fund vital services such as social care and special education needs, despite the disconnect between what residents pay and the services they receive. Councillor O'Brien advocated for a fairer funding model, highlighting that if the council were funded at the national average, it would have an additional £14 million. He noted that the current government settlement has been beneficial, but there is a need for better funding over the next three years.

Management actions and savings were another critical focus of the report. Councillor O'Brien outlined the importance of management actions and performance indicators in achieving savings. He highlighted the challenges of delivering savings in demand-driven areas such as housing, adult social care, and children's social care. Achieving these savings will require careful management and a focus on performance indicators.

The capital programme was discussed, with significant investments planned in highways and other infrastructure projects. Councillor O'Brien explained the rephrasing of budgets and the importance of ensuring that capital schemes are deliverable. He also addressed the strategic use of Section 106 funds for affordable housing and community projects, emphasizing the importance of utilizing these funds effectively to provide the most benefit to the community.

Councillor Vernon opened up for questions. Councillor Moss asked about the local government financial settlement and whether the final version had any significant differences from what was expected. Councillor O’Brien advised that the final LGFS was published on the 3rd of February. The changes are relatively small and primarily relate to a  ...  view the full minutes text for item OSC.33

Report of the Cabinet Member for Finance and Transformation.

A report from Councillor Thorpe was submitted ahead of the meeting. However, due to apologies from Councillor Thorpe, the Leader, Councillor Eamon O’Brien, gave a brief overview of the report.

The Housing Revenue Account (HRA) budget report for 2025/26 was presented, outlining the proposed rent levels and increases for various charges. The report proposes a 2.7% increase for Council Housing, Dwelling and Garage rents, Sheltered Support, Management, Service and Heating charges, and Furnished Tenancy charges. This increase is in line with the Government’s maximum allowable increase, which is CPI 1.7% plus 1%.

The report also discussed the expected Right to Buy (RTB) sales for 2025/26, estimating 107 sales due to changes in legislation and an influx of applications before the deadline. The capital programme for 2025/26 is set at £29.522 million, which includes significant investments in existing stock maintenance and new property acquisitions.

Financial performance was highlighted, with an emphasis on maintaining a minimum working balance for the HRA to ensure financial stability. The report also covered the regulatory requirements that need to be met, including the implementation of Awaab’s Law and the necessary investment in systems and resources to comply with these obligations.

Councillor Birchmore raised a question regarding the management fees and energy efficiency improvements in the Housing Revenue Account. She sought clarification on whether the management fees were being reviewed to ensure they are not excessive and whether there are plans to improve the energy efficiency of the housing stock.

Councillor O'Brien assured the committee that efforts are being made to improve energy efficiency and manage compliance priorities. He emphasized that the management fees are being reviewed to ensure they are not excessive and that there are plans to improve the energy efficiency of the housing stock. This includes looking at ways to reduce costs and improve the overall quality of the housing provided.

It was Agreed:

·         The report be noted 

Any other business which by reason of special circumstances the Chair agrees may be considered as a matter of urgency.

There was no urgent business.