The Scrutiny and Overview Committee met to review the Executive Mayor's annual update and the Period 10 Financial Performance Report. Key discussions included the council's financial stability, regeneration plans, housing services, and efforts to combat crime and anti-social behaviour. The committee also examined the financial performance for the 2025-26 budget, noting an underspend and discussing the ongoing challenges of the Dedicated Schools Grant deficit.

Executive Mayor's Annual Update

Executive Mayor Jason Perry presented his annual update, highlighting achievements from his first term and outlining priorities for the next four years. He emphasised the council's improved financial stability, strengthened governance, and progress in services such as Children's Services, Adult Social Care, and Housing. Visible improvements in neighbourhoods, including blitz cleans and increased CCTV deployment, were noted, alongside a reduction in crime rates. Regeneration projects in the town centre and district centres were also discussed, with over £1.2 billion in public and private investment secured.

Mayor Perry outlined his seven priorities for the 2026-2030 Business Plan: A Fair Deal for Residents, A Cleaner Safer Croydon, A Town Centre that is Busy Confident and Thriving, Stronger Local High Streets, Better Roads and Journeys, Homes People Can Be Proud Of, and Supporting Families Young People and Adults. He also detailed the First 100 Days Programme, focusing on visible improvements, higher standards, and practical action, including a strengthened Zero Tolerance campaign against environmental crime and anti-social behaviour.

Key areas of discussion included:

• Financial Stability and Debt: The Mayor acknowledged the ongoing challenge of Croydon's historic debt burden, which continues to place pressure on the council's finances. He stated that work continues with the government to secure a long-term solution to place the council on a sustainable financial footing.
• Regeneration and Investment: The Mayor highlighted progress on major regeneration schemes, including the Whitgift Centre, Centrale, and Regina Road, and the securing of significant public and private investment.
• Crime and Anti-Social Behaviour: The committee discussed the council's efforts to reduce crime and anti-social behaviour, including the use of Live Facial Recognition technology, increased CCTV deployment, and partnership working with the Metropolitan Police.
• Housing Services: Improvements in housing services, including the Regina Road regeneration project and enhanced repairs performance, were noted. The council's commitment to raising standards in the private rented sector through targeted landlord licensing was also discussed.
• District Centres and Local High Streets: The Mayor outlined plans for targeted investment and improvement programmes in district centres to support local businesses and enhance community spaces.
• Family Hubs and Community Support: The expansion of Family Hubs and community bases was highlighted as a way to bring services closer to residents and strengthen local support networks.

The committee engaged in a detailed question-and-answer session with the Mayor, seeking further clarification on specific initiatives and their anticipated impact. There was a particular focus on how difficult decisions would be communicated to residents and how the council would monitor the outcomes of its programmes. The Mayor emphasised a commitment to consulting on changes and focusing on the outcomes of decisions, citing examples such as the transformation of youth engagement services and the review of library services as evidence of doing things differently to achieve better outcomes.

Period 10 Financial Performance Report

The committee reviewed the Period 10 Financial Performance Report for the 2025-26 budget, which provided an update on the council's financial position as at the end of January 2026.

Key findings and discussions included:

• General Fund Underspend: The report indicated a forecast underspend of £27.3 million for the General Fund revenue budget by the end of the financial year. This was an improvement of £1.1 million since Period 9 and met the target set by the Stabilisation Plan. Councillor Jason Cummings, Cabinet Member for Finance, explained that this underspend was achieved through efficiencies across all directorates.
• Stabilisation Plan Savings: The council was forecast to achieve £21.6 million (86.1%) of its £25.1 million savings target under the Stabilisation Plan. While this was a positive outcome, it was noted that a small shortfall remained.
• Dedicated Schools Grant (DSG) Deficit: A significant concern was the continued pressure within the Dedicated Schools Grant (DSG) High Needs Block, with the forecast overspend increasing to £33.5 million. This was attributed to rising demand for special educational needs support and specialist placements, as well as external councils placing children with existing Education, Health and Care Plans (EHCPs) into Croydon. The council was awaiting a High Needs Sustainability Grant from the government, which was expected to write off approximately 90% of the historic deficit.
• Low Traffic Neighbourhood (LTN) Fine Reimbursements: The report detailed the financial implications of the High Court ruling that six LTNs were unlawful. The council was making a provision of approximately £3.5 million for unclaimed refunds, funded by the Business Risk reserve. This decision also impacted future income from fines, estimated at £2.5–£3 million annually.
• Internal Controls and Financial Management: The committee discussed the implementation of new internal spending controls and improvements to the Oracle IT system, which had enhanced visibility and oversight of staffing and expenditure. This was seen as a key factor in managing vacancies and achieving savings.
• Capitalisation Directions: The council continued to require government capitalisation directions, although the level was expected to reduce from £136 million to £108.7 million. Officers explained that this was due to a combination of historic debt, the ongoing costs of servicing that debt, and unfunded pressures facing local government nationally. While the goal was to reduce reliance on these directions, reaching zero was not considered feasible without compromising essential services.
• Vacancy Management: The committee explored how staff vacancies were being monitored and their impact on services. It was clarified that vacancies were often held for strategic reasons, such as restructuring or awaiting recruitment, and were not being used simply to meet financial targets at the expense of operational efficiency.
• SEND Reforms and Funding: The committee received reassurance that funding for children with special educational needs remained ring-fenced within the DSG. However, concerns were raised about the national uncertainty surrounding SEND reforms and their potential impact on demand. The council committed to continuing to fulfil its statutory responsibilities and to provide support where needed.

The committee identified several areas for future scrutiny, including the development of Key Performance Indicators (KPIs) for various programmes, a review of the council's website regarding hardship relief and partner support, and further examination of the impact of park guard initiatives and town centre improvements. The committee also requested that the commissioners be invited to a future meeting to discuss the business plan.

The committee concluded that while significant financial challenges remained, particularly concerning the DSG deficit and the historic debt burden, the council's financial position was stronger than in previous years. The underspend in the General Fund was welcomed, and the council's efforts to improve financial management and reduce reliance on government support were acknowledged.