The Overview and Scrutiny Committee meeting was scheduled to discuss the Housing Revenue Account's Medium Term Financial Strategy, budget, and rent setting for 2026-27, as well as the broader Medium Term Financial Strategy for 2026-27 and beyond. The committee was also set to review the Forward Plan of upcoming executive decisions.

Housing Revenue Account Medium Term Financial Strategy and Budget and Rent Setting for 2026-27

The committee was scheduled to consider proposals for the Housing Revenue Account (HRA) budget for 2026-27. This included noting increased financial pressures on the HRA due to the cost of repairs, regulatory compliance, and inflation. The report outlined proposals for rent and service charge increases, including a 4.8% increase for council homes, aligning with national rent policy. It also detailed plans to address financial pressures through improved efficiency in areas such as legal disrepair cases, void works, and rent collection. The committee was asked to submit any comments to the Cabinet regarding these proposals, as well as funding for a Hardship Fund and the Downsizing Incentive Programme.

The report also provided updates on existing savings proposals and noted progress on achieving savings from previous reports. It highlighted the financial position of the HRA over the next ten years, indicating significant investments alongside increased revenue expenditure. The document detailed key financial risks to the HRA, such as its reserve position, high costs of regulatory compliance, and the impact of inflation, alongside proposed mitigations.

Medium Term Financial Strategy 2026-27+

The committee was set to receive the Medium-Term Financial Strategy (MTFS) for 2026/27 onwards. This report outlined the council's financial strategy for the next four years, aiming to balance financial implications with available resources. It detailed a projected budget gap for 2027/28, increasing in subsequent years, and outlined proposals for new savings and income generation. The report also covered the provisional Local Government Finance Settlement for 2026/27 to 2028/29, including updates on core spending power, business rates, and council tax.

Specific proposals included the allocation of funds from the Crisis and Resilience Fund for various support strands, such as crisis payments, resilience services, and community-level support. The report also detailed changes to fees and charges for 2026/27 and presented the council's preferred option for balancing the 2026/27 budget, which involved a council tax increase and the implementation of savings and income proposals. The report included a statement from the Chief Finance Officer regarding the robustness of budget estimates and the adequacy of financial reserves. It also noted the outcome of public consultation and the ongoing nature of the MTFS process.

Forward Plan

The committee was scheduled to review the Forward Plan, which outlines upcoming executive decisions for the period February 2026 to May 2026. The purpose of this item was to allow the committee to note these decisions and determine if any required scrutiny. The report provided details on key and non-key decisions to be taken by Cabinet, Cabinet Members, and Chief Officers, along with their expected decision dates and directorates. The committee was informed that if they wished to scrutinise any item, a request would need to be made to the Chief Executive in accordance with agreed Work Programme arrangements.