The Corporate Overview and Scrutiny Management Board was scheduled to consider a range of important financial and strategic matters. These included a detailed review of the Medium Term Financial Plan (MTFP) for 2027/28 to 2030/31, which was expected to outline a significantly challenging financial outlook for the council. The board was also scheduled to examine the Quarter One forecast outturn for the revenue and capital budgets for 2026/27, alongside updates on the Collection Fund and Treasury Management. Further discussions were scheduled on the refresh of the Digital and Data & Insight Strategy, the outcomes of the Working Well Survey, and the Adult and Health Services Annual Statutory Representations Report. Finally, the board was to review the council's Notice of Key Decisions and its Work Programme for the upcoming year.

Medium Term Financial Plan (MTFP) 2027/28 to 2030/31

The Corporate Overview and Scrutiny Management Board was scheduled to receive an update on the proposed approach to scrutinising the council's Medium Term Financial Plan (MTFP) (17) for the period 2027/28 to 2030/31. The report indicated a significantly more challenging financial outlook than previously anticipated, forecasting a cumulative budget shortfall of £83.662 million over the four-year period before accounting for new savings proposals or future council tax increases. This shortfall was attributed to factors such as increased pay and inflation assumptions, growing social care costs, waste management pressures, digital and cyber-security investment needs, and higher capital financing requirements.

The report was scheduled to outline £21.519 million of new savings across the MTFP period, with £9.171 million comprising developed proposals ready for consultation and implementation, and a further £12.348 million consisting of transformation-led savings requiring further development. These savings were planned to span management and operating model reviews, service redesign, additional income generation, property rationalisation, digitalisation and automation, revised delivery models, and improved productivity, all within the council's 'Changing Together' Transformation Programme.

Even after applying these savings, a residual four-year shortfall of £62.143 million was projected if there were no further council tax increases. The report was expected to demonstrate the material effect of different council tax increasing assumptions, emphasising that lower increases would necessitate substantially greater savings, service reductions, or the use of reserves. The council's unallocated MTFP Support Reserve of £34.576 million was noted as insufficient to absorb the forecast budget deficits over the next two years and could not provide a sustainable solution to recurring budget pressures. The report was scheduled to recommend that Cabinet note the updated forecasts and risks, endorse the proposed savings and transformation approach, and approve consultation on the 2027/28 budget and MTFP (17). Consultation was scheduled to run from 21 September to 15 November 2026, with responses informing further reports to Cabinet in January 2027 and final budget proposals scheduled for Cabinet in February 2027.

Quarter One, 2026/27 Forecast Outturn for the Revenue Budget, Capital Budgets, Collection Fund and Treasury Management

The board was scheduled to examine the 2026/27 Quarter One Forecast Outturn for the Revenue Budget, Capital Budgets, Collection Fund and Treasury Management. The report presented to Cabinet on 16 September 2026 was expected to detail the quarter one forecast revenue outturn for the General Fund, maintained schools, the Dedicated Schools Grants, capital expenditure, treasury management, and the Council Tax and Business Rates collection funds. It was also scheduled to provide forecasts for the use of and contributions to earmarked and general reserves, and an overview of the achievement of the Medium-Term Financial Plan (MTFP) (16) savings plan targets for 2026/27.

At 30 June 2026, the General Fund Revenue Budget was forecast to overspend by £1.641 million against a Net Revenue Budget Requirement of £674.060 million. The report was expected to detail the major areas of forecast under and overspending, noting that some issues were one-off while others had been factored into the MTFP (17) forecasts. The General Reserve was forecast to be £38.047 million at 31 March 2027, which was within the approved reserves policy range. Total earmarked reserves were forecast to decrease by £19.499 million during 2026/27.

The forecast for the Dedicated Schools Grant Centrally Retained Block indicated a net in-year overspend of £31.105 million in the Special Educational Needs and Disabilities (SEND) High Needs Block, a substantial increase from the previous year. This was expected to increase the accumulated High Needs deficit to £70.828 million by 31 March 2027, before the receipt of High Needs Stability Grant funding. The council's capital programme was forecast to see expected expenditure of £293.212 million in 2026/27, a decrease from the position presented in the previous outturn report. Treasury Management arrangements were expected to operate within agreed prudential indicators. The Collection Fund forecasts indicated an overall net surplus of £0.755 million for the council's share. Finally, an update on the delivery of the £12.914 million of budget savings agreed for 2026/27 was scheduled, with £12.696 million (98.31%) forecast to be delivered by 31 March 2027.

Resources Quarter 1 June 2026: Forecast of Revenue and Capital Outturn 2026/27

The board was scheduled to receive details of the updated forecast revenue and capital outturn budget position for the Resources service grouping. Based on the position at the end of June 2026, the service was forecasting an underspend of £1.238 million (1.6%) against a revised budget of £78.106 million. This underspend was attributed to managed vacancies and proactive management of activity across various service areas, including Corporate Property and Land, Transactional and Customer Services, Digital Services, HR & Employee Services, Internal Audit, Risk and Corporate Fraud, and Procurement, Sales and Business Services.

The Resources capital budget was £33.422 million for 2026/27, with total expenditure to 30 June 2026 of £5.621 million (16.8%). Amendments to the MTFP (16) capital programme were also scheduled for consideration, reflecting additions, deletions, budget transfers and reprofiling of schemes.

Chief Executive's Office Quarter 1 June 2026: Forecast of Revenue and Capital Outturn 2026/27

The board was scheduled to receive details of the updated forecast revenue and capital outturn budget position for the Chief Executive's Office (CEO) service grouping. Based on the position at the end of June 2026, the service was forecasting an underspend of £0.140 million (0.7%) against a revised budget of £19.472 million. This underspend was attributed to managed employee costs within Corporate Affairs and a projected overachievement of income within the Registration service. However, Legal and Democratic Services was forecast to overspend due to pressures related to childcare litigation barrister fees and increased member allowances and pension costs. These pressures were noted as being factored into the 2027/28 and MTFP (17) budget forecasts. The CEO capital budget was £0.743 million for 2026/27, with no expenditure incurred by the end of June 2026.

2026-2030 Financially Resilient Communities Strategy

The board was scheduled to consider the proposed Financially Resilient Communities Strategy 2026–2030, which was set to replace the current Poverty Strategy 2022–2026. The strategy aimed to build on existing foundations but extend the focus to prevention, early intervention, and resilience, seeking to identify financial vulnerability sooner and address the root causes of hardship. The report was expected to outline feedback from two phases of public consultation, including surveys and stakeholder events, as well as an equalities impact assessment of the proposed changes. The strategy's ambition for 2030 was that more residents would have the financial resilience to cope with life's challenges, fewer households would experience persistent financial insecurity, and more children, young people, and adults would access opportunities to improve their life chances and support long-term financial security. The strategy was structured around five Action Pillars: Prevention, Protection, Pathways, Participation, and Partnerships.

Digital and Data & Insight Strategy Refresh

The board was scheduled to receive an update on the refresh of the Council's Digital Strategy and Data & Insight Strategy for the period 2026–2029. These complementary strategies were developed to provide a coherent framework for how the council will use technology, data, intelligence, and evidence to support the Council Plan and the 'Changing Together' Transformation Programme. The Digital Strategy's vision was A modern, confident and financially sustainable Council; powered by digital and shaped by our communities' needs, structured around Digital Customer, Digital Council, and Digital Community themes. The Data & Insight Strategy's vision was A data and insight-driven Council where trusted data, intelligence and evidence support better decisions, more effective services, financial sustainability and improved outcomes for the people and communities of County Durham. The report was expected to highlight strengthened approaches to prioritisation, governance, delivery assurance, performance, and benefits realisation, including the responsible use of artificial intelligence.

Working Well Survey 2026

The board was scheduled to receive an overview of the Council's survey results from the Working Well survey, which was undertaken between 20 April and 22 May 2026. The survey received 3,195 responses, representing a 39.4% response rate. The findings were described as broadly positive, with all areas showing improvement since 2022. Key areas identified for continuous improvement at a corporate level included the employee support and wellbeing offer, senior management demands and resilience, internal communications and engagement, management of organisational change, being an inclusive employer, and the employee benefits package and awareness. The report was expected to outline proposed initiatives and actions to address these areas.

Quarter One, 2026/27 Performance Management Report

The board was scheduled to receive an update on the council's progress towards achieving the strategic ambitions and objectives set out in its Council Plan 2025–30. The report was expected to present Key Performance Indicators (KPIs) using dashboards to show trends, performance direction, comparisons with other councils, and performance against targets. Key performance messages across the council's five strategic ambitions were expected to show a mixed but broadly positive position, with stronger performance in areas such as customer contact, economic development, community safety, digital connectivity, and waste diversion, while also identifying areas where demand, complexity, or recovery activity continued to affect performance. Specific updates were scheduled on sickness absence, apprenticeship uptake, mandatory training completion rates, FOI and SAR response times, business support and job creation, planning application timeliness, visitor economy figures, youth justice outcomes, fly-tipping reports, broadband availability, public transport punctuality, housing delivery, empty homes, selective licensing, leisure and cultural venue attendance, children in care numbers, EHCP timeliness, elective home education rates, adult social care referrals and assessments, alcohol-specific mortality, and waste diversion rates.

Adult and Health Services (AHS) Annual Statutory Representations Report 2025/26

The board was scheduled to consider the Annual Statutory Representations Report for Adult Social Care Services for the period 1 April 2025 to 31 March 2026. The report was expected to provide a detailed analysis of performance, highlighting key messages such as a 7.6% increase in the number of complaints investigated, with 54.7% not upheld. The number of complaints declined and not investigated increased to 11. The report was also scheduled to detail the service areas receiving the most complaints, with Older People, Physical Disabilities and Sensory Support accounting for 47.5% of the overall complaints. The most common reason for making a complaint was 'Disputed Decision – Disagreement with an Explanation or Decision'. The report was also to include information on compliments received, which increased to 88, and the number of complaints escalated to the Local Government and Social Care Ombudsman (LGSCO), which increased to 25. The report was expected to outline learning outcomes and actions taken to improve services as a result of these representations.

Notice of Key Decisions

The board was scheduled to review the current notice of key decisions that are scheduled for consideration by the Executive. This notice complies with statutory requirements to provide at least 28 days' notice of key decisions. The report was expected to contain details of decisions anticipated between September 2026 and January 2027, along with information on Overview and Scrutiny involvement in respect of these forthcoming key decisions.

COSMB Work Programme 2026/27

The board was scheduled to review and consider its current work programme for 2026/27. Members were asked to assess whether the programme remained appropriately balanced, focused on key priorities, achievable within available capacity, and sufficiently flexible to accommodate new priorities as they arose. The report was expected to provide the current work programme for consideration, and members were invited to propose any amendments. A briefing session on sickness absence was also scheduled for 14 September 2026.