The Overview and Scrutiny Performance Board met to discuss the Corporate Transformation Programme, the Budget Scrutiny Process for 2027/28, and the refresh of the Scrutiny Work Programme. The Board was asked to provide comments to inform the Council's consideration of the Corporate Transformation Programme and to identify any further information or scrutiny required. The Board was invited to provide comments to inform Cabinet's consideration of the budget process and to identify any areas requiring further scrutiny. The Board considered the proposed refresh of the Scrutiny Work Programme for 2026/27 and was asked to consider whether any additional issues should be added to its work programme. The Board was informed that the refreshed Scrutiny Work Programme would be submitted to full Council for approval.

Corporate Transformation Programme

The Board discussed the Corporate Transformation Programme, which has been developed in response to significant financial and operational challenges, including a reliance on Exceptional Financial Support (EFS) amounting to £59.9 million for 2026/27. Councillor Kent, Deputy Leader with Responsibility for Finance, Corporate Services and Business, explained that the programme is essential for the council to adapt and reduce costs at pace, as the current financial situation is unsustainable. Phase One of the programme focuses on bringing enabling services together into a new corporate services directorate, accelerating the adoption of new technologies like Artificial Intelligence (AI), and improving the management of expenditure.

This phase aims to achieve annual savings of £6.6 million to £8.6 million, including up to £4.3 million from a reduction of approximately 100 roles. Councillor Kent emphasised that the transformation programme is designed to prepare the council for Local Government Reorganisation (LGR), which is expected to bring significant changes to the structure of local government in Worcestershire.

During the discussion, councillors raised concerns about the impact of these changes on frontline services and vulnerable residents. Paul Robinson, Chief Executive, assured the Board that the aim is to improve efficiency and productivity without adversely affecting service delivery. He explained that AI and automation would be used to streamline repetitive tasks, freeing up staff capacity and improving service delivery. He also highlighted the importance of ensuring that vulnerable individuals have alternative ways to access services if they are not digitally inclined.

Councillor Roger Bennett expressed concerns about the cost of external reports, such as the £500,000 spent on the PwC report, and questioned the value for money. Councillor Kent responded that PwC was chosen due to their international reputation and existing relationship with the council, which made their services more cost-effective. He also stressed that the investment in external expertise was necessary due to the council's limited in-house capacity.

Councillor Richard Morris voiced concerns about the capacity of the council to deliver the transformation programme, given the existing lean management structure. He questioned where the money, people, and time would come from to implement the proposed changes. Councillor Kent acknowledged these concerns but stated that the current financial situation presents a burning platform that necessitates urgent action.

The discussion also touched upon the potential impact of AI on jobs. Paul Robinson clarified that the reduction of 100 roles is not solely due to AI but is an amalgamation of efficiencies gained across various tasks, with AI and automation contributing to freeing up capacity. He explained that savings are realised when roles become redundant through natural attrition or vacancies, rather than through direct job cuts.

The Board was asked to provide comments to inform the Council's consideration of the Corporate Transformation Programme and to identify any further information or scrutiny required.

Budget Scrutiny Process for 2027/28

The Board reviewed the proposed budget scrutiny process for 2027/28. Phil Rook, Chief Financial Officer, explained that the timetable has been designed to allow for significant scrutiny input from the Scrutiny Panels and the Overview and Scrutiny Performance Board (OSPB) before the final budget is set. He highlighted that additional panel meetings are being scheduled to allow for detailed scrutiny of the draft Medium-Term Financial Plan (MTFP), the Capital Programme, and proposed savings.

Councillor David Taylor, Chair of the Overview and Scrutiny Performance Board, emphasised the importance of making financial information understandable for all councillors and the public, suggesting that a glossary of terms and abbreviations be included in reports. He also raised a point of clarification regarding the dates in the draft budget timetable.

The Board was invited to provide comments to inform Cabinet's consideration of the budget process and to identify any areas requiring further scrutiny.

Refresh of the Scrutiny Work Programme

The Board considered the proposed refresh of the Scrutiny Work Programme for 2026/27. Councillor Seb James, Chair of the Corporate and Communities Overview and Scrutiny Panel, presented the draft work programmes for the various Scrutiny Panels and the Health Overview and Scrutiny Committee (HOSC). The Board was asked to consider whether any additional issues should be added to its work programme, using a set of criteria to prioritise topics, such as their relevance to council priorities, impact on local people, and potential for improvement.

Several potential future items were discussed, including Education Sufficiency proposed by Councillor Sam Evans, which was noted as potentially falling under the remit of the Children and Families Overview and Scrutiny Panel. Councillor Tor Pingree suggested incorporating discussions on the government's strategy on violence against women and girls and youth work into the annual crime and disorder meeting.

The Board was informed that the refreshed Scrutiny Work Programme would be submitted to full Council for approval.

Scrutiny Chairs (and Lead Member) Update and Cabinet Forward Plan

Scrutiny Chairs provided updates on their respective committee activities. Councillor Richard Morris, Chair of the Health Overview and Scrutiny Committee, reported on positive progress in strengthening urgent and emergency care, patient flow, and reducing ambulance handover times. He also noted concerns raised about the terminology used for corridor care and back of ambulance care.

Councillor Chris McSweeny, Chair of the Environment Overview and Scrutiny Panel, discussed progress on highway infrastructure and the ongoing programme (likely referring to a specific environmental initiative). He also highlighted upcoming topics for his panel, including the active travel plan and Local Transport Plan 4.

Councillor Sam Evans, Chair of the Adult Care and Well-Being Overview and Scrutiny Panel, mentioned that his panel's next meeting would focus on the outcome of the Care Quality Commission (CQC) report, which rated services as good but identified outstanding issues.

A discussion also took place regarding vacancies and the appointment of vice-chairs for scrutiny committees. Councillor David Taylor expressed frustration at the lack of nominations, highlighting the importance of having sufficient members to effectively scrutinise the administration.

The Board also reviewed the Cabinet Forward Plan, noting items such as the Worcestershire Library Strategy and the Shrub Hill Development, and considering whether any of these warranted further scrutiny.