The Corporate Scrutiny Committee met on Tuesday 17 February 2026 to review the council's financial performance for the third quarter of the 2025/26 financial year and to scrutinise the draft Annual Delivery Plan and supporting enabling strategies. The committee noted the Q3 finance and performance report, which indicated a projected £15.4 million overspend on the General Fund, and requested further detailed briefings on Home to School Transport and the Dedicated Schools Grant deficit. Members also reviewed the draft Annual Delivery Plan and Key Enabling Strategies, which aim to translate the council's corporate priorities into actionable yearly goals.

Finance and Performance 2025/26 - Q3

The committee received an update on the council's financial and performance position as of Quarter 3 of the 2025/26 financial year. Claire Edwards, Executive Director of Finance and Performance, presented the report, highlighting a projected overspend of £15.4 million for the General Fund, an underspend of £702,000 for the Housing Revenue Account, and an anticipated increase in the Dedicated Schools Grant (DSG) deficit by £4.36 million, resulting in an in-year deficit of £23.77 million.

During the discussion, members raised several concerns. One member inquired about the proportion of the General Fund overspend that was structural versus one-off, and what corrective actions were being implemented for 2026/27. Significant concerns were also voiced regarding the escalating costs of Home to School Transport, with questions about how the council intended to manage current expenses and projected growth, including the potential for means-testing families. A member specifically requested a detailed update on the transformation of Home to School Transport at a future meeting.

The increase in the DSG deficit also prompted questions about its accounting treatment and financial impact on the council. Members also sought clarification on whether the council paid tax on investment income and enquired about the Housing Revenue Account underspend and capital programme slippage. Additionally, concerns were raised about the condition of highways, leading to a proposal for a joint scrutiny session to review the highways contract and maintenance approach.

In response, officers explained that the primary drivers of the overspends were demand pressures within Children's Services, Adult Social Care, and Home to School Transport. Demographic growth had been factored into the 2026/27 budget, and transformation initiatives were underway to mitigate future pressures. Regarding Home to School Transport, a cross-council transformation project, supported by external expertise, was in progress, with financial impacts expected from 2027/28. Means-testing was being considered as part of the broader review. The DSG deficit was attributed to national growth in SEND demand and was being funded through cash balances under statutory override arrangements, which impacted investment income. Officers confirmed that the council does not pay tax on investment income. The Housing Revenue Account underspend was primarily due to profiling and timing differences and was ring-fenced, with funding carried forward. Regarding highways, officers acknowledged that deterioration was exacerbated by severe weather and historic underinvestment, with funding constraints limiting the pace of improvement.

The committee resolved to note the Q3 Finance and Performance report, receive a detailed briefing on Home to School Transport transformation, arrange a joint scrutiny session on highways maintenance and the highways contract, and receive a written briefing note clarifying the accounting treatment and financial impact of the DSG deficit.

Draft Annual Delivery Plan and Draft Key Enabling Strategies

Guy Holloway, Assistant Chief Executive, presented the draft Annual Delivery Plan and supporting 'One Council' enabling strategies. He explained that the Corporate Plan, adopted in December 2025, outlines the council's strategic priorities for the next four years and contributes to the longer-term Big 50 vision for North Northamptonshire. The Annual Delivery Plan, a new addition for the 2026/27 financial year, aims to bridge the gap between the Corporate Plan and annual service plans, enhancing transparency and focus on delivery.

A public speaker welcomed the introduction of the Annual Delivery Plan and offered observations on several aspects, including retirement villages, the Local Plan, youth opportunities, the evaluation of Local Area Partnerships, the definition of parks and green spaces, the sustainability of community centres, the limited reference to culture and the Cultural Master Plan, and the consideration of rural areas in delivery.

During the committee's discussion, members emphasised the importance of the Annual Delivery Plan clearly translating Corporate Plan priorities into actionable steps and ensuring all councillors were informed of delivery progress. The alignment between the Annual Delivery Plan, service plans, and staff performance objectives was highlighted as crucial for organisational accountability. Members acknowledged the significance of transformation work in supporting delivery and the need to prioritise and rationalise existing programmes. The council's ambition to become a high-performing organisation with a clear focus on delivery was also noted.

Officers clarified that the Annual Delivery Plan was designed to bridge the gap between strategy and operational delivery, with specific actions for the year. Executive Members had been involved in shaping these actions to reflect political priorities. Service plans and staff objectives would align with the Annual Delivery Plan. Work was underway to review the transformation landscape to identify priorities and streamline efforts.

The committee resolved to note the Draft Annual Delivery Plan and Draft Key Enabling Strategies.

Corporate Scrutiny Work Plan

The committee noted the Scrutiny Work Plan as it relates to their remit.

The meeting concluded at 8:55 PM.