The Overview and Scrutiny Committee met to discuss the budgetary control report, the treasury management strategy, and the budget strategy, all of which are due to be considered by the cabinet. The committee noted the budgetary pressures arising from homelessness and adult social care, and discussed potential measures to mitigate these, including preventative work and collaboration with health partners. The committee also discussed the treasury management strategy, the long-term plan for reducing debts, and the modernisation agenda.

Budgetary Control Report Quarter 2

The committee reviewed the Budgetary Control Report Quarter 2, which set out the financial performance of the authority as of 30 September 2025. The current general fund forecast for 2025/26 is an overspend of £31.7 million, a decrease of £10 million from quarter one. This includes overspends in Place, Communities & Enterprise (£23.5 million), the People Directorate (£28.2 million), and Strategy (£4.7 million), with a corporate budget underspend of £25 million. The forecast includes £4.2 million of modernisation costs allocated to service areas. Ongoing variances are a concern, particularly within the People Directorate and housing general fund, related to homelessness pressures. £7.1 million of savings have been delivered, with a further £6.3 million in active delivery, leaving £8.4 million of savings in doubt. The council's earmarked reserves were reduced as part of balancing the 2024/25 outturn position, and this forecast indicates a significant draw on the council's reserves. The current capital budget and forecast spend for 2025/26 is £153 million, with whole-year slippage at £195 million.

Councillor Daniel H. Morgan-Thomas raised concerns about the low achievement of savings in place and communities, and Councillor Paul Canal asked about actions to prevent structural deficits.

Councillor Vanisha Solanki, Deputy Leader/Cabinet Member for Finance, responded that the £4.6 million pressure in place and communities was from homelessness, and that anticipated savings were not achieved. She added that officers have put spending controls in place, especially in homelessness and adult social care.

Councillor Santos added that the council is one of the lowest funded, and that they are working on efficiencies, including an AI note-taking service and Power BI tools. He also mentioned a review of the relationship between the council and North East London Foundation Trust¹ (NELFT).

Councillor Canal asked what the minimum safe level of reserves was, and when a section 114 notice² would become a risk. David, the Section 151 Officer, responded that the ideal general reserve would be around £20 million, and that a section 114 notice would be required if a balanced budget could not be set.

Councillor Kumud Joshi suggested augmenting care packages with social prescribing, and Councillor Ahmed mentioned preventative work and move-on initiatives.

Councillor Morgan-Thomas raised the issue of other boroughs using Redbridge accommodation for temporary accommodation, and Councillor Holmes spoke about vulnerable people being placed in Ilford with no support.

Councillor Ahmed responded that Redbridge is one of the net recipients of out-of-borough placements, and that they notify other boroughs when they place someone out of borough.

Councillor Solanki added that other London local authorities are not listening, and that there needs to be another conversation around that.

2025/26 Treasury Management Strategy Mid-Year Review

The committee reviewed the 2025/26 Treasury Management Strategy Mid-Year Review, which provides a mid-year review of the council's treasury activities. The report confirms that borrowing and investment activities have been conducted in accordance with the approved strategy.

Councillor Morgan-Thomas asked about mitigating global economic uncertainty and how the budget overspend is changing the investment strategy.

David, the Section 151 Officer, responded that they take careful notice of advisors and are very prudent, balancing risk against securing returns. He added that replenishing the general reserve could allow for more investment and less borrowing.

Ian Ambrose, Operational Director of Finance (Deputy s151 Officer), added that global turmoil is keeping guilt rates unhelpfully high, and that the spread of interest rates is monitored to mitigate refinancing risks.

Councillor Canal asked about the long-term plan for reducing long-term debts, and whether capital slippage is deferring future pressures. He also asked what the council's exposure to refinancing risks is over the next five years.

David responded that there is no long-term plan in place to reduce borrowing, and that they are not in a financial position to make inroads into long-term borrowing at this stage.

Councillor Solanki added that the debt portfolio is periodically reviewed, and that they will not borrow more than they need.

Councillor Canal asked whether the council has borrowed as much as it can, and whether they should reconsider the plan to spend £18 million buying private sector houses.

Councillor Solanki responded that the council is not that indebted compared to other boroughs, and that she could not agree that they are maximising their borrowing.

Budget Strategy 2026/27

The committee reviewed the Budget Strategy 2026/27, which sets out progress on setting a balanced budget for 2026/27 and the medium-term. The report recognises the desire to protect service provision, while acknowledging that this task is increasingly difficult.

Councillor Joshi said that senior management need to stick to the budget, and that overspending should be taken out of next year's money.

Councillor Duddridge responded that decisions do not come politically or operationally free, and that they have to be considered in the round.

Councillor Solanki added that they are going to be looking at how they set the budget differently, especially looking at historic savings that haven't been met.

Councillor Goddin asked about contact with other authorities regarding their experience of financial support from central government.

David responded that finance officers are in touch with officers from some of the authorities who are already in the financial support regime, and that they have been taking advice from CIPFA³. He added that ministerial sign-off is expected in December or January.

Councillor Goddin asked about borrowing £80 million to solve accommodation issues.

Councillor Ahmed responded that they are going through a housing crisis, and that they need to deliver the homes that residents need. He added that they are targeting nightly lets and taking a preventative approach.

Councillor Ahmed asked about modernisation and savings.

Councillor Solanki responded that they are going to be looking at how they can use AI technology, and that the modernisation program will hopefully bring a reduction in the demand-led services.

Councillor Judith Garfield asked what it would mean for the budget if council tax was frozen.

David responded that it would mean finding an extra £8 million of savings or seeking that amount in financial support.

Councillor Solanki added that all options have to be considered, and that the 4.99% increase has been essential to help protect vital frontline services.

Councillor Joshi asked about the loan from the government and increasing council tax.

Councillor Solanki responded that there are no numbers in the budget report, and that officers are still working out what the figure would look like. She added that the chronic underfunding and 14 years of austerity has meant that they have not been able to get the fairer funding that they deserve.

Updates from Chairs of Policy Development Committees

The committee then received updates from the chairs of the policy development committees:

• Councillor Holmes reported that the Children and Young People Policy Development Committee will be discussing special educational needs (SEND) in mainstream education at their next meeting.
• Councillor Guy Williams reported for Councillor Hair that the Clean and Green Policy Development Committee had a workshop on disabled parking bays and blue badges, and that they are waiting for feedback before publishing their report on parking.
• Councillor Sunny Brar reported that the Health and Care Policy Development Committee are planning a few visits related to their work on mental health.
• Councillor Joshi reported that the Homes and Neighbourhoods Policy Development Committee will be selecting a new theme at their next meeting.
• Councillor Ahmed reported that the Safe Redbridge Policy Development Committee had a workshop with the police and looked into different areas how best they can work with the police.
• Councillor Garfield reported that the Strategy and Resources Policy Development Committee are coming near to the end of their inquiries, and that the customer experience report should be out soon.
• Councillor Goddin reported that the External Scrutiny Committee doesn't meet until next month.
• Councillor Morgan-Thomas reported that the Health Scrutiny Sub-committee last met in September and will meet again on 26 November.
• Councillor Anne Marie Sachs reported that the Education Scrutiny Sub-committee meeting has been rescheduled to 24 November due to an accident involving the interim operational director.

Overview and Scrutiny Committee Work Plan 2025-2026

The committee agreed to note the standing item regarding pre-decision scrutiny and then moved on to discuss the Overview and Scrutiny Committee Work Plan 2025-2026.

Councillor Morgan-Thomas noted that the work plan currently has the budget on every meeting between now and almost the end of the corporate year, which he didn't think was correct. He suggested that the meeting on 8 December is in error and that it shouldn't be on that agenda. He also suggested that the SEND priority action plan does stay.

Councillor Solanki agreed that the budget should be removed from the December agenda, and that they will try their best to get the SEND priority action plan to cabinet for December.

The committee agreed to accept the work plan subject to changes taking place between now and December.

The committee noted that the next meeting is on 8 December.