The Overview and Scrutiny Committee of Merton Council met on Wednesday 11 March 2026 to discuss the council's budget and business plan, temporary accommodation spend, and the work programme. The committee resolved not to refer a previous decision back to Cabinet, provided an overarching Environmental Impact Assessment (EIA) was noted at the next Cabinet meeting.

Budget and Business Plan Scrutiny

The committee reviewed the council's budget and business plan, noting that £1.3 million in further savings were being discussed, bringing the total to £8.3 million. A further £1.744 million needs to be identified before the February Budget Council. Members were informed that the provisional local government finance settlement for 2026-2029 had been received, with changes due to the Fair Funding review and reset of business rates. Financial pressures, particularly in social care and temporary accommodation, were highlighted as ongoing concerns replicated across London and nationally. The Executive Director and Cabinet Member expressed confidence in Merton Council's ability to deliver savings, with an 89% delivery rate reported in the Period 8 report. Concerns were raised about the lack of a balanced budget and sufficient opportunity for scrutiny of further savings, though the Cabinet Member assured that Budget Council would provide a full opportunity for this.

Regarding Section 117 aftercare, members were reassured that proposed savings would not result in the removal of care but rather an assessment of need. Section 117 is a statutory duty under the Mental Health Act, a joint responsibility between the Integrated Care Board (ICB) and the local authority. The proposal aims to work collaboratively with health colleagues to review individuals and ensure they receive appropriate support.

Temporary Accommodation Spend

The committee discussed the significant overspend of almost £7 million on temporary accommodation during 2024/25. A Delivery Unit Team is working with the Housing Needs Service to reduce this deficit. The primary causes of homelessness identified were the end of assured short-hold tenancies, an increase in Section 21 evictions, and evictions by family and friends due to complex reasons. The Domestic Abuse Act 2021 has also expanded the council's responsibilities towards individuals fleeing domestic abuse.

The council anticipates that the Renters' Rights Act will reduce the need for temporary accommodation placements by making Section 21 evictions illegal. However, uncertainty remains regarding the act's impact on the private rental sector, with some landlords reportedly leaving the market, thus reducing available properties. The council engages with landlords through twice-yearly forums, which also provide training opportunities. The council participates in 'Setting the Standard', a London-wide inspection regime for properties, in addition to its own officer inspections.

Work Programme and Topic Suggestions

The committee agreed to the proposed work programme for the upcoming year. Several topics were suggested for future discussion, including the Equality, Diversity & Inclusion strategy, a review of the Member Survey results, and the Scrutiny Annual Report. The committee also noted the ongoing work to support the CfGS review.

The committee also reviewed the minutes of the previous meeting and the minutes of a call-in from 21 January 2026. The decision was made not to refer the matter back to Cabinet, on the condition that Councillor Alambritis takes the report to the February Cabinet meeting, with the published overarching EIA to be noted.

The committee also considered the agenda items for the meeting, which included apologies for absence, declarations of pecuniary interest, minutes of the previous meeting, minutes of the call-in, a presentation from the BCU Commander on crime and policing in Merton, a workforce update, a Living Wage Champion update, and the work programme and topic suggestions.

The committee membership includes Councillor Edward Foley (Chair), Franca Ofeimu (Vice-Chair), Agatha Mary Akyigyina OBE, Michael Butcher, Dan Johnston, Gill Manly, Aidan Mundy, John Oliver, Robert Page, Tony Reiss, and Nick McLean. Substitute members and co-opted representatives were also present. The committee operates under the remit of Overview and Scrutiny, which aims to hold the Council's Executive to account and identify ways to improve council services and develop new policies. Its work includes 'call-in' of Cabinet decisions, policy reviews, one-off reviews, and scrutiny of key council documents such as the budget and business plan.