The Overview and Scrutiny Performance Board met on Tuesday, 6 January 2026, to scrutinise the draft budget for 2026/27 and the Medium Term Financial Plan (MTFP). The Board's primary task was to provide comments to the Cabinet for their consideration before the Cabinet meeting on 13 January 2026.

Budget Scrutiny 2026/27

The Board discussed the draft budget position for the upcoming financial year, 2026/27, and the associated Medium Term Financial Plan (MTFP). This scrutiny is a crucial step before the Cabinet considers the budget on 13 January 2026. The council faces significant financial challenges, even before the Provisional Local Government Finance Settlement for 2026/27 to 2028/29 was announced on 17 December 2025.

Members of the Board were reminded that Scrutiny Panels have been engaged in quarterly performance and financial monitoring throughout the year, providing oversight of service provision, identifying budget pressures, and examining resource allocation and impact. All councillors had also received briefings on the financial context of the 2026/27 budget, including updates on the Autumn Statement, government policy statements, and the outcome of the Local Government Finance Settlement.

A report detailing the draft MTFP outlook was presented to the Cabinet on 18 December 2025. The Provisional Local Government Settlement, received on 17 December 2025, will be incorporated into the report for the Cabinet meeting on 13 January 2026. This Cabinet meeting will also review the draft budget for 2026/27, the draft MTFP, and consider various savings proposals. The Full Council is scheduled to consider the draft budget and MTFP on 15 January 2026.

The timeline for the remaining budget process includes:

• 16 January 2026 – 26 January 2026: Scrutiny Panels will consider the impact of Exceptional Financial Support¹ and Council Tax flexibility, explore further savings opportunities, and identify any other issues for Cabinet to consider regarding the 2026/27 budget or MTFP. Recommendations will be forwarded to Cabinet for discussion on 5 February 2026.
• 5 February 2026: Cabinet will consider the 2026/27 Budget and MTFP, incorporating the provisional Local Government Finance settlement, the 2026/27 Budget Proposal, and the 2026/27 Council Tax proposal.
• 26 February 2026: Council will approve the 2026/27 Budget and Council Tax, subject to in-principle approval for Exceptional Financial Support and the outcome of additional Council Tax flexibility for 2026/27.

The Board was asked to determine any comments for the Cabinet to consider on the draft budget, savings proposals, and the draft MTFP. The supporting documents for this discussion included the 18 December 2025 Cabinet Report on the MTFP update and the agenda for the Cabinet meeting on 13 January 2026.