The Overview and Scrutiny Committee of Redbridge Council met on Monday 15 June 2026 to discuss the budgetary control outturn for the 2025/26 financial year and the preparation and programme for a new Local Plan. The committee noted a significant General Fund overspend of £26.8 million for the 2025/26 financial year, largely attributed to pressures in housing, adult social care, and children's services. Members also approved the commencement of work on a new Local Plan, which will involve extensive community consultation to shape the borough's future development.

Budgetary Control Outturn 2025/26

The committee reviewed the final budgetary control outturn for the 2025/26 financial year, which revealed a General Fund overspend of £26.8 million. Councillor Vanisha Solanki, Deputy Leader and Cabinet Member for Finance and Shared Prosperity, explained that this overspend was primarily driven by unprecedented housing pressures and escalating temporary accommodation costs across London, impacting the Place, Communities and Enterprise Directorate with a £21.4 million overspend. Significant pressures were also noted in Adult Social Care (£23.2 million overspend) and Children and Education (£3.5 million overspend), largely due to complex care needs and rising costs.

These overspends were partially offset by a £25.1 million corporate underspend, attributed to lower borrowing costs and the release of contingency provisions. Councillor Solanke highlighted that 66% of the planned savings were delivered, and the council had strengthened its financial controls through targeted budget challenges and tighter monitoring.

Concerns were raised by Councillor Stephen Adams regarding the reduction in the General Fund balance from £24.294 million to £7.854 million, questioning its sufficiency for future risks. Councillor Solanke acknowledged that £7 million was insufficient and confirmed that an additional £20 million had been provided through exceptional financial support to bolster reserves.

Councillor Martin Sachs questioned the realism of the savings programme, noting that £7.367 million of the £21.815 million savings target for 2025/26 was not delivered, with £6.295 million reversed in the 2026/27 budget. Councillor Solanke explained that some savings were reversed due to revised expectations or were being delivered through different means, and that savings baked into the March budget were being closely monitored.

Discussions also covered the significant overspend of £18.5 million attributed to temporary accommodation. Councillor Steve Moore, Executive Director, explained that a key assumption that proved inaccurate was the unit cost of procuring properties, with a greater reliance on more expensive nightly rents than anticipated. The council is working to move towards more cost-effective 10+1 leasing arrangements.

Regarding the Dedicated Schools Grant (DSG), Councillor Jyotsna Rahman Islam highlighted a shift from a £5.490 million surplus reserve to a £9.134 million deficit after a £14.624 million overspend, mainly driven by a £16.204 million high-needs block overspend. Councillor Lloyd Duddridge, Cabinet Member for Children, Young People and Education, assured that national statutory override arrangements were expected to continue until March 2028 and were not subject to change. He also outlined an underlying strategy to educate SEND children within the borough, including the development of new school places, to reduce out-of-borough costs. The Section 151 Officer confirmed that there was a realistic scenario where the DSG deficit could become a general fund pressure as the grant only covers 90% of the deficit.

The committee also noted a significant capital programme slippage of £243 million against a delivered expenditure of £107 million for 2025/26. Councillor Adams questioned the confidence in delivering £194 million in the coming year. Councillor Solanke acknowledged historical challenges in capital programme delivery but stated that a strategic approach had been taken, with close monitoring through a capital board and the Redbridge Recovery Board. Key benefits being delayed due to slippage included improvements to leisure services such as Fulwell Cross Leisure Centre, Southwood Library, and Kenneth Moore Theatre.

Preparation and Programme for New Local Plan

The committee then moved to discuss the preparation and programme for a new Local Plan. Councillor Saima Ahmed, Cabinet Member for Housing and Planning, introduced the report, emphasizing that an up-to-date Local Plan is a crucial tool for shaping the borough's future, attracting investment, and delivering on corporate priorities such as tackling climate change, inequality, and providing affordable homes.

Councillor Ahmed stressed the importance of genuine community engagement, stating that residents' views would be at the centre of the process. The new legislation mandates a faster 30-month plan-making process, and by starting now, the council aims to maintain control of the timetable and ensure local priorities drive growth.

Steve Moore, Executive Director for Place, Communities and Enterprise, passionately highlighted the significance of the Local Plan as a 15-year strategy encompassing not just housing but also skills, employment, health, and well-being, with a particular focus on ensuring the young voice is heard. He also emphasized the need to communicate the plan in accessible language, focusing on life chances and prosperity.

Councillor Chowdhury raised concerns about tall buildings, asking how appropriate locations would be decided. Councillor Ahmed assured that tall buildings would be in the right places after extensive resident engagement, and that heritage and character studies would be undertaken. Councillor Ahmed also added that the Local Plan would provide the council with greater control over development decisions.

The budget for the Local Plan review was discussed, with Councillor Adams questioning the breakdown between external consultancy fees and internal staffing. Councillor Solanke, Cabinet Member for Finance, explained that the £4.651 million budget covers all eventualities, including the examination process, and that comparisons with other boroughs had been made.

Councillor Sachs inquired about the stage at which the Equality Impact Assessment would be prepared. It was confirmed that a draft Integrated Impact Assessment, including the equalities impact, would be prepared before Gateway 2 (Regulation 18 consultation). The assessment would be used to test different spatial strategy options to understand their differential impacts on various communities.

The timeline for the new legislation, requiring completion within 30 months, was clarified, with the period not having started yet. Councillor O'Falla raised concerns about developers potentially taking advantage of the transition period before the new Local Plan is in place. Councillor Ahmed reassured that developer engagement would be managed through early conversations and pre-application advice, while the new plan would provide stronger control.

The committee also discussed how the new plan would strengthen design quality and ensure new development responds to local character. The use of design codes for specific neighbourhoods was mentioned, and the need for capacity within the budget to achieve this level of detail was acknowledged. The importance of protecting bungalow estates and conservation areas was also raised.

Finally, the committee agreed to note the report and noted the standing item regarding pre-decision scrutiny. The date of the next meeting was confirmed as 13 July 2026.