Agenda item

(A Report by Brendan Arnold, Interim Director of Finance (S151 Officer)

The Committee received a presentation from the Interim Director of Finance (S151 Officer), outlining a revised approach to preparing the Council’s budget for the 2026/27 financial year, designed to address previous challenges and improve transparency, engagement, and scrutiny.

The Interim Director of Finance (S151 Officer) explained that the new process had been developed in response to concerns raised by Cabinet Members, Scrutiny Members, and Senior Officers regarding the limited time available between the receipt of the Government’s financial settlement in December and the statutory deadline for budget approval in February/March.

The revised approach aimed to:

·       Enable earlier engagement with senior leadership and service teams.

·       Provide a structured review of cost pressures and savings proposals.

·       Improve consultation and stakeholder input.

·       Clarify the respective roles of Audit & Governance (system assurance) and Scrutiny (review and challenge).

Key elements of the process included:

·       Use of Star Chamber Panels to support and challenge budget assumptions.

·       A detailed timetable covering assurance, consultation, Cabinet and Scrutiny engagement, and statutory deadlines.

·       Identification of risks such as failure to deliver savings, unrealistic assumptions, and inability to set a lawful budget

The Committee was advised that the process had already commenced, with cost pressures reviewed in June, savings proposals developed in July, and Star Chamber sessions held in August. Work had continued through September to prepare options for Council consideration.

It was noted that the Government’s Autumn Statement had been delayed to late November, with the financial settlement expected shortly before Christmas. This would leave limited time for final budget preparation, but the revised process was designed to mitigate this constraint.

A joint Budget Scrutiny session was proposed for January 2026, to allow Members to review the draft budget in detail. The Interim Director of Finance (S151 Officer) recommended a five to six-hour session, potentially held in the evening, with all Scrutiny Members and Audit & Governance Members invited. Portfolio Holders would present their proposals, supported by relevant officers, and Members would have the opportunity to ask questions and make recommendations.

During consideration of the report, Members welcomed the structured approach to budget scrutiny and raised several queries and suggestions regarding the process and arrangements.

It was confirmed that informal briefings had taken place between Portfolio Holders and Assistant Directors, supported by Star Chamber sessions to review savings proposals.

A suggestion was made to split the joint scrutiny session over two days to allow for more focused discussion. Officers acknowledged the proposal but noted that previous experience had shown extended sessions to be exhausting and logistically challenging.

The Committee supported a proposal for collaboration between the Chairs of Overview & Scrutiny and Audit & Governance to coordinate the joint session.

Support was expressed for the open and transparent approach to budget scrutiny, and Members welcomed the opportunity to contribute meaningfully to the process.

Resolved

1.     That the report be noted;

2.     That arrangements for a joint Budget Scrutiny session in January 2026 be progressed in collaboration with the Audit & Governance Committee; and

3.     That Members be encouraged to prepare questions and feedback in advance of the session to support effective scrutiny.