The Scrutiny Committee met on Monday 03 August 2026 to discuss the Revenue and Capital Budget Monitoring Report for 2025-26, the executive response to the Water Supply Short Focused Inquiry, and the Leader's report on the first year of the administration.

Revenue and Capital Budget Monitoring Report Outturn 2025-26

The committee discussed the Revenue and Capital Budget Monitoring Report for the financial year 2025-26. The report highlighted a revenue overspend of £21.6 million (excluding schools) and a £33.0 million overspend in Schools' Delegated Budgets. The most significant pressure was within Adult Social Care & Health, which reported a £42.9 million overspend, attributed to unachieved savings targets and increasing demand, complexity, and inflationary costs. Children, Young People & Education also reported an overspend of £1.1 million, largely due to higher costs for looked-after children's placements.

Several directorates, including Growth, Environment & Transport, Chief Executive's Department, Deputy Chief Executive's Department, and Non Attributable Costs, reported underspends, which helped to mitigate the overall position. The capital programme saw a significant underspend of £105.8 million, primarily due to project rephasing.

The report noted that Cabinet had agreed to note the outturn position, roll forward £0.8 million for existing criteria and £0.3 million for member grants, draw down from General Fund reserves to fund the overspend, and add capital slippage/re-phasing to future years' budgets. The committee noted these decisions and made several recommendations for future reports, including the inclusion of Dolge work in budget monitoring reports, a plan for contingency around adult social care concerns, and a paper on capital projects affected by Local Government Reorganisation (LGR).

SFI Executive Response to Water Supply Short Focused Inquiry

The committee considered the executive response to the recommendations made by the Water Supply Short Focused Inquiry. The executive's response indicated full acceptance of all eight recommendations from the inquiry, which stemmed from major water supply failures in Tunbridge Wells and across Kent in late 2025 and early 2026.

The recommendations cover areas such as communication, identification and support of vulnerable residents, emergency water distribution, business and rural water use, community engagement, impacts on schools and care settings, planning and infrastructure resilience, and accountability.

KCC has written to water companies and the Kent and Medway Resilience Forum (KMRF) to progress recommendations within their remits. For recommendations within KCC's direct control, actions are underway, such as updating the KCC Crisis Communications Plan and strengthening sector-specific contingency guidance. The new Kent Water Resilience Partnership will also play a key role in addressing long-term water resilience.

The committee noted the executive's positive response and the acceptance of all recommendations, noting that progress would be monitored through relevant committees and engagement with water companies.

Leader's Report: One Year On

The committee received the Leader's report, providing an overview of the Council's progress during the administration's first year. The report highlighted achievements in strengthening financial control, transforming adult social care commissioning, driving improvements in SEND services, taking a leadership role in water resilience, and delivering significant investment in highways.

Key points included:

• Financial Position: A revenue overspend of £21.6 million was reported, an improvement on earlier forecasts due to spending controls and DOLGE-led financial oversight. Savings of £98.6 million were delivered, and General Fund reserves remain at £66 million, forecast to return above the minimum resilience threshold. Challenges remain with demand-led services and the Dedicated Schools Grant deficit, but national SEND reforms offer a more positive outlook.
• Adult Social Care: Progress has been made in transforming commissioning, strengthening the provider market, and improving quality and outcomes. New contractual arrangements focus on quality assurance, risk identification, and integration.
• SEND: Despite increasing demand and a significant deficit, progress is being made through reform programmes, increased oversight, and partnership working.
• Water Resilience: KCC has taken a leadership role, strengthening emergency preparedness, undertaking water efficiency programmes, and developing a 25-year Water Resources Strategy. A Kent Water Resilience Partnership is being established.
• Highways: A record number of pothole repairs (53,000) were carried out, alongside increased investment in preventative maintenance and a new 21-year Highways Term Maintenance Contract.

The committee noted the report, with some members raising points for debate regarding the focus on activity over outcomes, the lack of detail on specific savings figures, and the alignment of statements in the report with audit findings. The Leader defended the report's accuracy and highlighted the administration's achievements in managing the council's finances and services.

Work Programme

The committee considered and noted the proposed work programme for future meetings, which included items such as Family Hubs, SEND Reform Plan, and the Budget Monitoring reports. A point was raised about the absence of Local Government Reorganisation (LGR) on the scrutiny work programme, which was noted for future consideration. A query was also raised regarding the decision to stop accepting refrigerators and freezers at household waste recycling centres, which was deemed appropriate for the agenda-setting meeting.