The Overview & Scrutiny Committee was scheduled to discuss the council's budget, the cost of living crisis, and the council's workforce. The committee was also scheduled to review its work programme for the coming year.

Budget Introduction and Scene Setting

The committee was scheduled to receive a presentation on the budget introduction and scene setting from Councillor Stephanie Cryan, Cabinet Member for Equalities, Democracy and Finance, and council officers. The presentation was expected to cover training, fair funding consultation, and the current financial strategy.

The report pack included a finance update, which stated that the biggest change to local government funding since business rates retention in 2013 was expected.

Biggest change to Local Government Funding since Business Rates Retention in 2013

It noted that balancing the budget would likely require up to £90 million of savings over 3 years, and that this would be the first time in 20 years that the council has had to make this scale of savings.

Balancing the budget will likely require up to £90m of savings over 3 years. This would be the first time in 20yrs (probably ever) that the council has had to make this scale of savings.

The report also noted that the government will be providing a three-year funding settlement when the council receives the provisional statement in late December. It stated that although there is still much detail to follow, including the final outcome of the Fair Funding Review[^2] and any associated transitional arrangements, that three-year settlement will allow the council the opportunity to plan into the longer term and deliver the services residents need.

Councillor Stephanie Cryan noted that while the council fully agrees with the principle of Fair Funding and ensuring that councils are funded according to need and deprivation, the recent Policy Statement on the funding settlement means that for Southwark the council will be looking at a funding gap of £60m - £90m.

The report pack also included proposed options to help achieve a balanced 2026-27 budget, and draft fees and charges schedules.

Cost of Living - Southwark 2030 Goals

The committee was scheduled to receive a presentation from Councillor Stephanie Cryan and officers on the Cost of Living - Southwark 2030 goals including economies.

The presentation was expected to cover:

• The background to the cost of living crisis.
• The council's cost of living response between 2022 and 2025, including the Help with Bills (Cost of Living Fund), Right to Food Borough, and More Better Jobs initiatives.
• Cost of Living Support / Together Through Winter 2025/26.
• Looking ahead to pivoting from emergency support to preventative support.

The presentation noted that the Cost-of-Living Crisis that emerged in 2022 was a consequence of huge increases in global energy prices due to a combination of the war in Ukraine, disruption to global supply chains as the world economy reopened after COVID, and higher inflation globally.

It also noted that in 2022, the council declared Southwark a Right to Food Borough, committing to work with local businesses, community groups, and schools to ensure that everyone in Southwark has access to healthy, affordable food within a short walking distance of their home.

Annual Workforce Report

The committee was scheduled to receive the Annual Workforce Report from Councillor Stephanie Cryan and officers.

The report included data and analysis against 16 key metrics that provide insight into:

• the size and diversity of the council's workforce
• sickness absence
• turnover
• the use of agency workers

The report noted that Southwark's headcount is the highest of all the London boroughs, in part reflecting the council's commitment to in-house service delivery. It also noted that in June 2023, over 400 employees transferred into the council as part of the insourcing of leisure centres.

The report also identified a number of actions that are underway, or will be initiated, to address the council's position against some metrics, including:

• HR to lead the development of an action plan to increase the representation of women in senior roles
• HR to run a campaign to encourage more employees to declare their disability status
• HR to lead the development of an action plan to increase the representation of disabled employees in senior roles
• HR to deliver a project to review and improve the council's approach to managing sickness absence
• HR to introduce an exit interview process to better understand why employees leave the council
• HR to lead the development of an action plan to reduce the use of agency workers

Work Programme

The committee was scheduled to note the work programme as at 11 December 2025.

The report pack included the proposed remits of the Overview and Scrutiny Committee and its commissions based on the cabinet portfolio responsibilities set out in the council constitution and the Southwark 2030 Goals.

The Overview and Scrutiny Committee established four commissions for the 2025-26 municipal year at its meeting held on 17 May 2025:

• Education and Local Economy Scrutiny Commission
• Environment, Community Safety and Engagement Scrutiny Commission
• Housing Scrutiny Commission
• Health and Social Care Scrutiny Commission