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Audit and Governance Committee - Thursday, 25th June, 2026 10.00 am
June 25, 2026 at 10:00 am Audit and Governance Committee View on council website Watch video of meeting Read transcript (Professional subscription required)Summary
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The Audit and Governance Committee of Cambridgeshire and Peterborough Combined Authority met on Thursday 25 June 2026, discussing key issues including the strategic delivery plan for bus franchising and updates to the ethical framework. The committee noted the Mayor's Independent Review into bus franchising implementation pathways and the associated Strategic Delivery Plan, while also reviewing updates to the Code of Conduct and the Gifts and Hospitality Policy, with a decision made to retain the £50 registration threshold for gifts and hospitality.
Bus Franchising: Strategic Delivery Plan and Next Steps
The Committee received an update on the Cambridgeshire and Peterborough Combined Authority's (CPCA) bus franchising scheme, following an independent review chaired by Leon Daniels OBE. The review recommended a hybrid implementation pathway, combining short-term direct awards and service permits with a phased introduction of competitively tendered franchise contracts. Officers have developed a Strategic Delivery Plan (SDP) to address concerns raised in the review, including affordability, depot strategy, and fleet provision.
Key points from the discussion included:
- Affordability: The SDP acknowledges a funding gap under franchising, exacerbated by the Mayor's commitment to freeze the Mayoral Precept. Closing this gap may necessitate network reductions, with initial analysis suggesting a potential 10% reduction in bus mileage by 2029 and 19% by 2035 if services are simply withdrawn. Alternative measures like enhanced bus priority, increased service frequencies, and extended operating hours would require further business cases.
- Depot Strategy: Despite funding constraints, the recommendation is for CPCA to own depots in Peterborough and Cambridge to ensure fair competition. The Peterborough depot site has been identified, with an estimated cost of £18 million and a target completion of July 2028. The Cambridge depot strategy is less advanced, with options for a single shared facility or separate sites being considered. Interim solutions like leasing existing operator depots or temporary land are being explored to enable franchising to commence before new depots are ready.
- Fleet Specification: The report recommends reconsidering the original proposal for operators to supply their own fleets, particularly for larger lots. CPCA ownership or leasing of electric buses is suggested to level the playing field, encourage competition, and facilitate the transition to zero-emission vehicles. The need for both used/transition vehicle specifications and new vehicle specifications was highlighted, balancing consistency with affordability and avoiding deterring smaller operators.
- Network and Lotting Strategy: The existing franchising scheme requires updating to reflect recent changes in bus routes. A phased approach to franchising, potentially by area or service type, is recommended to manage risk and build organisational capacity. Initial route groupings suggest separate lots for Cambridge City and Peterborough City, with further analysis needed for other zones.
- Timescales: The original timelines for franchising are no longer considered practical due to affordability challenges, depot readiness, and data limitations. A revised, phased approach is proposed, with direct awards and service permits used initially, followed by competitive tendering for franchise contracts.
The Committee noted the report and the additional work required for the SDP, including further consultation on Service Permits and changes to the outline business case.
Ethical Framework, Code of Conduct, and Gifts and Hospitality
The Committee received an update on the administration of the ethical framework, including the Code of Conduct and Gifts and Hospitality policy.
Key points discussed were:
- Code of Conduct Complaints: One complaint was considered during the reporting period and closed with no further action.
- Legislative Changes: Amendments to the Constitution and Code of Conduct were proposed to comply with the English Devolution and Community Empowerment Act 2026, specifically regarding the publication of home addresses on Disclosable Pecuniary Interest forms. The Code of Conduct will also explicitly include the Mayor.
- Gifts and Hospitality Policy: A proposed update to the Gifts and Hospitality Policy was discussed, including a suggestion to increase the registration threshold from £50 to £100. Officers explained this was based on benchmarking with other Combined Authorities and aimed to reduce administrative burden for routine, low-value hospitality, given the Mayor's increasing strategic role. However, concerns were raised by some members about the justification for the increase and the importance of transparency. Ultimately, the Committee resolved to approve the updated policy but retain the registration threshold at £50.
- Ombudsman's Annual Review Letter: The Committee noted the letter from the Local Government and Social Care Ombudsman, which confirmed that no complaints were upheld against the Combined Authority during the reporting period.
Constitution Updates
The Committee noted recent changes to the Constitution resulting from the English Devolution and Community Empowerment Act 2026. Significant further review will be required as the Act's provisions are implemented. The Committee agreed to reconvene the Constitution Working Group to consider these updates, with several members volunteering to participate.
Financial Statements and Audit Reports
The Committee reviewed the draft Statement of Accounts and Annual Governance Statement for 2025/26. They were advised that the external audit was progressing in line with expectations, with a move towards a qualified audit opinion for 2025/26, aiming for an unqualified opinion in 2026/27. Clarification was sought and provided on the inclusion of the Mayor's Chief of Staff in senior officer remuneration, the apparent increase in Legal and Governance expenditure (attributed to the mayoral election costs), and the reclassification of certain assets.
The Committee also noted the 2025/26 Treasury Management Outturn Report, which showed performance against indicators and confirmed no breaches of prudential or treasury management indicators. Investments totalled £196 million, exceeding the forecast and resulting in higher than budgeted income.
The Provisional Audit Planning Report for 2025/26 from the External Auditors was also noted, with no significant risks or weaknesses identified at this stage. The report indicated progress in rebuilding audit assurance, moving towards a qualified opinion.
Updates were provided on Internal Audit progress, with the 2025/26 plan nearing completion. A positive assurance opinion was noted for the second consecutive year. The 2026/27 Internal Audit Plan and Charter were approved. The Committee also noted progress on the implementation of internal audit actions, with a reduction in outstanding actions, although some remained overdue.
Finally, the Committee received an update on Procurement and Grant activity, noting improved compliance and a reduction in waivers. The importance of strengthening contract management and reporting on grant governance was highlighted. The Committee requested that future procurement reports use financial years for comparison and receive the reason for a specific procurement waiver.
The Committee noted the draft work programme for the 2026/27 Municipal Year, with the Spatial Development Strategy agreed for inclusion. The date of the next meeting was confirmed as Thursday 10 September 2026.
The meeting concluded with an exempt session to discuss the Corporate Risk Register and a deep dive into the Peterborough Station Quarter project.
Delegated decisions linked to this meeting
Decision summaries below are AI-generated from the council’s published record. Check the council source or the full decision page before relying on them.
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External Audit - 2025/26 External Audit Plan
Information OnlyThe Audit and Governance Committee of Cambridgeshire and Peterborough Combined Authority noted the External Audit – Provisional Audit Planning Report 2025/26 on 25 June 2026. The report provided a basis for reviewing the proposed audit approach and scope for the 2025/26 audit.
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Internal Audit - Progress Report
Information OnlyThe Audit and Governance Committee noted the Internal Auditor’s progress report on 25/06/2026. The report provided an update on progress against the 2025/26 and 2026/27 Internal Audit Plans. The committee noted that one further report in relation to Recruitment and Retention had been finalised, resulting in a Substantial Assurance opinion.
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Re-Admittance of Press and Public
Recommendations ApprovedThe Audit and Governance Committee of Cambridgeshire and Peterborough Combined Authority Council resolved to re-admit the press and public on 25 June 2026.
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Standing Items - Updates and Comments
Information OnlyThe Audit and Governance Committee received an update on Fraud Prevention and Local Government Reorganisation. There were no Health and Safety updates to report.
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Exclusion of Press and Public
Information OnlyThe Audit and Governance Committee resolved to exclude the press and public from the meeting on 25 June 2026. This decision was made because the next item of business contained exempt information under Part 1 of Schedule 12A of the Local Government Act 1972.
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Declaration of Interests
Information OnlyThe Audit and Governance Committee of Cambridgeshire and Peterborough Combined Authority Council noted that there were no declarations of interest made on 25/06/2026.
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Procurement Update
Information OnlyThe Audit and Governance Committee of Cambridgeshire and Peterborough Combined Authority noted the contents of the Procurement and Grant Update report on 25 June 2026. The report provided a comparison of procurement behaviour and grant awards between 2024 and 2025. The committee will continue to monitor shifts in procurement routes and is implementing a new e-tendering portal for improved oversight.
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Date of Next Meeting
Recommendations ApprovedThe Audit and Governance Committee noted the date of its next meeting. The next meeting was scheduled for 10am on Thursday 10th September 2026 at Pathfinder House, Huntingdon.
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Apologies for Absence
Information OnlyThe Audit and Governance Committee noted apologies for absence on 25/06/2026. Councillor Mark Inskip sent apologies, with Councillor Christine Whelan substituting and Councillor Gary Inskip also absent.
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Exclusion of the Press and Public
Recommendations ApprovedThe Audit and Governance Committee decided to exclude the press and public from the meeting on 25 June 2026. Recommendations were approved.
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Internal Audit - Draft Annual Report
Information OnlyThe Audit and Governance Committee of Cambridgeshire and Peterborough Combined Authority noted the draft Annual Report and Internal Audit Opinion on 25/06/2026. The report summarised internal audit work completed during the year.
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Internal Audit Strategy 2026/27
Recommendations ApprovedThe Audit and Governance Committee approved the Internal Audit Plan and the associated Internal Audit Charter on 25 June 2026. The plan details proposed reviews for 2026/27 including Bus Franchising, Equality Diversity and Inclusion, AI Governance, and Peterborough Station Quarter.
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Work Programme
Information OnlyThe Audit and Governance Committee noted the draft work programme for the 2026/27 municipal year on 25 June 2026. It was suggested that the Spatial Development Strategy be included as a potential area for inclusion.
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Bus Franchising: Independent Review into Bus Franchising Implementation Pathways, Strategic Delivery Plan and Next Steps
Information OnlyThe Audit and Governance Committee noted the Mayor's Independent Review into Bus Franchising Implementation Pathways and the Strategic Delivery Plan. Officers have produced the Strategic Delivery Plan to address key concerns identified in the review. The committee also noted additional work on Service Permits and changes to the business case.
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Internal Audit Action Tracker Report
Information OnlyThe Audit and Governance Committee noted and endorsed progress on the implementation of internal audit actions on 25 June 2026. The committee reviewed updates on actions related to Budget Setting and Budgetary Control and General Data Protection Regulation (GDPR).
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Election of Vice-Chair
Recommendations ApprovedAudit and Governance Committee decided that Councillor Paul Hodgson-Jones was appointed as Vice-Chair of the Committee. This decision was made on 25/06/2026.
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Future Provision of Internal Audit
Information Only -
2025/26 Treasury Management Outurn Report
Information OnlyThe Audit and Governance Committee reviewed and noted the 2025/26 Treasury Management Outturn Report on 25 June 2026. The committee reviewed the actual performance against adopted prudential and treasury indicators.
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CPCA Update
Information OnlyThe Audit and Governance Committee noted an update on recent Cambridgeshire and Peterborough Combined Authority activities on 25 June 2026.
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Minutes of the previous meeting
Recommendations ApprovedThe Audit and Governance Committee approved the minutes of the previous meeting held on 5 March 2026. The Committee also noted the Action Log and progress made against identified actions. Officers will review the Committee's Terms of Reference and present proposed amendments in the new municipal year.
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Chair's Announcements
Information OnlyThe Audit and Governance Committee noted the Chair's announcements on 25/06/2026. The Chair welcomed new and returning members to the first meeting of the municipal year.
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Draft Statement of Account and Annual Governance Statement 2025/26
Information OnlyThe Audit and Governance Committee of Cambridgeshire and Peterborough Combined Authority noted the draft Annual Governance Statement 2025/26 and the draft Statement of Accounts 2025/26 on 25/06/2026.
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Constitution Update
Recommendations ApprovedThe Audit and Governance Committee noted changes to the Constitution due to the English Devolution and Community Empowerment Act 2026 on 25 June 2026. The Committee agreed to reconvene the Constitution Working Group to consider further updates.
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