Verbal update to be provided on the meeting of Budget Scrutiny Working Group which was due to take place on Thursday 23 July 2026.
Minutes:
The Committee received a verbal update in respect of the finance reports that were due to be reported to the Budget Scrutiny Working Group (BSWG). The Chair explained that, as the BSWG meeting had been cancelled, officers present would provide an overview of the three financial reports due to be considered by the Executive Committee at its meeting tomorrow evening (28 July 2026).
Three finance reports were due to be considered by the Executive Committee at its meeting on 28 July 2026: Medium Term Financial Plan Scene Setting Report 2027/28; Treasury Management Outturn Report 2025/26; Quarter 4 Financial Monitoring and Outturn Report 2025/26.
The Financial Services Manager advised that the first report related to the Medium Term Financial Plan scene setting. Members were informed that this report represented the first stage in setting out the Council’s budget for 2027/28 and the Medium Term Financial Plan through to 2030/31. It did not seek approval of a budget at this stage, but instead set out the timetable, assumptions and key financial issues that would shape budget proposals later in the year.
Members expressed disappointment that the Budget Scrutiny Working Group (BSWG) had not been able to meet, noting that this had limited the opportunity for detailed financial scrutiny before consideration by the Executive Committee. It was clarified that the reports had been published as part of the BSWG agenda before the meeting had had to be cancelled. However, Members noted their disappointment that BSWG had not been able to meet and report back to Overview and Scrutiny Committee.
In discussing the Medium Term Financial Plan scene setting report, Members raised questions about budget pressures, including undelivered base budget efficiencies and savings. Officers explained that efficiencies and savings were built into service budgets each year to encourage services to identify and deliver efficiencies. It was acknowledged that some efficiencies had not been delivered, and Members were advised that a full review of savings and efficiencies by service area would be undertaken as part of the 2027/28 budget process.
Members also discussed the provision included for the cost of Members joining the pension scheme. Officers clarified that the budget pressure reflected the maximum potential cost if all eligible Members joined the scheme. Where Members did not join, this would be recognised as a saving within the year.
A question was raised regarding Local Government Reorganisation (LGR) and the potential constraints that might apply once a shadow authority was in place. Officers advised that further detail had not yet been provided and confirmed that clarification would need to be sought once more information was available from Government about the arrangements and the implications for spending and budget decisions for the district authorities once a shadow council was in place after May 2027 local elections.
The Committee then discussed the capital outturn position. Members queried the low level of spending reported on the capital outturn position, with the capital outturn position of £8.154 million expenditure, against the total estimated capital budget of £31.7 million. It was highlighted that the net balance of £23.693 million had been carried forward into the 2026/27 capital programme. Officers explained that where capital schemes were not fully spent within the financial year, the unspent balance was carried forward into the following year for those schemes. Members were advised that the carry forward did not represent funding returned for general redistribution, but funding allocated to existing capital schemes approved through the budget process.
Members raised questions about individual capital schemes, including capital projects on improved parking scheme and new cemetery provision. Officers indicated that they did not have detailed information to hand on every individual capital scheme but agreed that further details could be provided after the meeting. Concerns were raised that some Members of the Committee had not been involved in discussions around setting the previous budget and therefore required more supporting detail to scrutinise the capital programme effectively. Some Members also expressed significant concern that the capital project on cemetery provision referred to Ipsley Road as the location of the cemetery, despite this location having been discounted by Members and Officers directed to find alternative locations for cemetery provision through the decision-making process under the previous administration. Members of the Committee requested that this be corrected in future capital programme reporting.
The Committee was advised that the third report was the Treasury Management Outturn Report. Officers explained that this provided the Council’s annual review of treasury management activity during the year, including borrowing, investments and cashflow. Members were advised that the Council had remained fully compliant with its Treasury Management Strategy, prudential indicators and approved borrowing and investment limits throughout the financial year, and that the Section 151 Officer had confirmed that treasury management activities had been undertaken in accordance with the relevant code of practice.
Members commented that, as the Treasury Management Outturn Report was retrospective, it was difficult to scrutinise in the same way as forward-looking budget proposals. It was noted that Overview and Scrutiny had a role in considering both retrospective and forward-looking matters. Officers advised that arrangements could be made for the Budget and Scrutiny Working Group to meet before the full Council meeting at which the finance reports discussed today would be submitted so that Members could be provided with an opportunity to scrutinise those reports in more detail.
Members also expressed concern about the timing of Working Group meetings and emphasised that meetings should, whenever possible, be scheduled at evening hours. It was acknowledged that the cancelled meeting had arisen from unusual circumstances and that the normal intention was for meetings to be held in the evenings.
RESOLVED that
1) the verbal update on the finance reports being submitted to the Executive Committee meeting on 28th July 2026 be noted.
2) A further meeting of the Budget and Scrutiny Working Group be scheduled before the full Council meeting for which the finance reports referenced above were due to be reported.