Agenda item

The Overview & Scrutiny Panel is invited to consider and comment on the proposals (Report and Appendicies to follow)

Executive Councillor: B Mickelburgh

By means of a report by the Corporate Director of Finance and Resources (a copy of which was appended in the Minute Book), the 2026/27 Revenue Budget and Medium Term Financial Strategy (2026/27 to 2029/30) including the Capital Programme was presented to the Panel.

Councillor Tevlin entered the meeting at 19:07.

Clarification was sought on the proposed 5% salary increase, noting that this appeared high compared with private sector trends and inflation forecasts. It was further queried the overall 12.3% increase in salary costs and requested additional information on employee numbers, seeking to understand the factors contributing to the increase across Council departments. The Panel’s attention was drawn to Section 9 of the report and were assured that clarity would be given and ready for Full Council if requested.

After a question from the Panel, it was confirmed that the RGS grant included that of the Food Waste and that provisions have been made internally to cover those costs.

It was asked whether the internal audit budget bid proposed continuing with an external provider, or moving the service in?house, noting that an in?house model might offer greater efficiency and cost?effectiveness. It was confirmed that it would continue to be an external provider.

Clarity was sought regarding Appendix 7 on Reserves, querying the absence of the £3 million allocated for Local Government Reorganisation (LGR). It was suggested that a single consolidated table of all Reserves would be helpful. Further insight was requested into what contributions were being made by other Local Authorities with whom the Council may be aligned following LGR, and how fairness in those contributions would be ensured. The Panel heard that it the absence was due to the funds not having been released yet but this could be added for full transparency. It was advised there is a Working Group drafting terms of reference and understanding based on the experience of other Authorities who have already been through LGR and looking at how the costs were shared.

The Panel enquired about the assessments undertaken to determine the financial impact of the current planning fees on the Council. It was advised this is being undertaken in the Improvement Plan and that the Council’s fees and charges are in line with inflation.

A discrepancy was highlighted in Table 6 of the Commercial Investment Reserve and it was confirmed that it was an error and would be corrected before the report goes onto Cabinet.

The view was expressed that the Medium Term Financial Strategy (MTFS) should cover the standard timeframe rather than a reduced period, noting that Local Government Reorganisation may not proceed and that it would be more prudent to await a confirmed Government timetable.

The fee increase for the Pests was questioned and it was confirmed that this is a discretionary service that the Council provides residents  and that all Services have been driven to reviewing their fees and charges against statutory guidance and increasing where they need to.

The Panel wondered whether the earmarked reserves were being reviewed by Cabinet or the Section 151 Officer, suggesting reserves showing no movement over the MTFS period could be released and redirected to more productive use. It was advised this is being reviewed by the new Officer in the role for the reason raised and that this will potentially fall under the decision of the new Administration.

The Section 151 Officer was asked what the biggest risk was to achieving the budget as set out. The Panel heard that the only concerns would be the Final Settlement but has confidence in the financial sustainability.

Following the discussion, it was

RESOLVED

that the comments of the Overview and Scrutiny Panel be passed to Cabinet for their consideration when making a decision upon the recommendations within the report.