The Corporate Overview and Scrutiny Committee of Staffordshire Council met on Tuesday 28 July 2026. The meeting focused on the ongoing Local Government Reorganisation (LGR) process, the council's financial performance for the 2025/26 financial year, and the integrated performance report for the first quarter of 2026/27. The committee also reviewed treasury management activities, representation on outside bodies, and its future work programme.

Local Government Reform

The committee received an update on the Local Government Reorganisation (LGR) process, a government-mandated initiative to create unitary authorities in Staffordshire and Stoke-on-Trent. The government has confirmed a north and south geographical split for Staffordshire. While the council had initially proposed an east-west model, the current focus is on constructive engagement for effective implementation. Officers detailed the extensive preparatory work, including establishing programme governance and a joint programme management office. The transition will occur over two periods, with new unitary council elections in May 2027 and vesting day on 1 April 2028. Councillors discussed the challenging timescales, potential for judicial reviews in other areas, and the need for adequate resources. The establishment of voluntary joint committees was highlighted as a key step for collaborative planning.

Final Financial Outturn 2025/26

The committee reviewed the final financial outturn for 2025/26, which showed an underspend of £6.696 million against a budget of £753 million. While this was noted positively, it was clarified that a significant portion was due to one-off benefits and the use of reserves. A key concern was the £4.5 million overspend in children's and families services, funded by reserves, which was identified as a potential long-term structural issue. The report also detailed capital expenditure, with a total spend of £118.044 million against a revised budget of £118.041 million. The committee noted the establishment of an earmarked reserve of £2.3 million to support future LGR costs.

Integrated Performance Report – Quarter 1, 2026-27

The Integrated Performance Report for the first quarter of 2026-27 indicated a generally positive start, with 32 out of 39 delivery projects on track. Key achievements included progress in inclusive education and digital connectivity. However, challenges persist in children's social care and SEND services due to rising demand. Financially, the quarter one revenue forecast showed an overspend of £19.8 million, primarily driven by increased costs for children in care placements. Mitigating actions are being implemented. Councillor Alex Farrell raised concerns about poor phone signal connectivity in rural areas, while Councillor Philip White questioned the workforce efficiency item, which was attributed to a delay in a report. The performance of highways teams was highlighted positively, with statistics on pothole repairs. Strategic reviews were on track, and the social care management system, though facing some delays in data migration and testing, was reported to be on target for implementation.

Treasury Management Report for the year ended 31 March 2026

The committee reviewed the Treasury Management Report for the year ended 31 March 2026. Councillor Sean Bagguley, Cabinet Member for Finance and Resources, presented the report, emphasizing a prudent and low-risk approach to treasury management, focusing on security and liquidity of funds. The council repaid £30.5 million in external loans and avoided additional interest costs by utilising cash reserves. Investments yielded a return of 4.29%, exceeding the benchmark. Councillors commended the finance team's approach to managing taxpayer money. The report detailed borrowing and investment activities, noting that using internal cash balances in lieu of borrowing had resulted in significant interest savings.

Review of Representation on Outside Bodies

Councillor Martin Murray, Leader of the Council, presented a report on the review of representation on outside bodies. The aim was to ensure council representation remained relevant and effective. It was proposed to remove 14 outside bodies due to inactivity or lack of requirement for council representation. Councillors sought clarification on specific bodies, and officers agreed to follow up on these. The committee supported the removal of the identified bodies and the continuation of representation on the remaining 90.

Work Programme

The committee received an update on its work programme. New items added included the ERP system implementation and a briefing paper on the risk register. Local Government Reorganisation (LGR) was identified as a future scrutiny topic, focusing on governance, timelines, capacity, and the implications of the government's pause on LGR. An AI business case was added to the September meeting agenda. The committee also formally appointed members to the Medium-Term Financial Strategy (MTFS) working group.