The meeting covered a wide range of topics including a review of performance reports and updates on the Council’s financial position. It also included a report on the development of Local Network arrangements to replace Area Action Partnerships.

Medium Term Financial Plan (15) 2025/26 to 2028/29

The Corporate Overview and Scrutiny Management Board received an update on the development of the 2025/26 budget and the Medium-Term Financial Plan (15) (MTFP (15)) covering the period 2025/26 to 2028/29.

The report detailed the financial challenge facing the Council and highlighted the following key points:

• The financial forecast for the Council for the next four years is challenging with a significant budget deficit of £69.788 million.
• A Comprehensive Transformational Change Programme to address the medium term financial challenges is required.
• The updated financial forecasts include the impact of the Chancellor of the Exchequer’s Autumn Budget Statement which was presented to the House of Commons on 30 October 2024.
• A second phase of public consultation on proposals to balance the budget has been agreed and will commence on Friday 6 December 2024. This consultation will close on Friday 17 January 2025.
• The updated financial forecasts continue to assume the Council will increase its charges for Council Tax by 2.99% each year.
• £15.836 million of additional savings measures have been identified to help address the budget deficit.
• A report on the outcomes of the second phase of public consultation will be considered by Cabinet in January 2025.
• The final budget report will be presented to full Council on 19 February 2025.

Draft Council Plan 2025-2029

The Corporate Overview and Scrutiny Management Board were asked to review a draft version of the Council Plan for the period 2025-2029 which will be considered for approval by Cabinet in January 2025 and by full Council on 19 February 2025.

The draft plan sets out the Council’s priorities for the next four years. There are 5 priority themes, which remain unchanged from the previous plan, these are:

• Our Economy
• Our Environment
• Our People
• Our Communities
• Our Council

The report highlighted the following key points about the Council Plan:

• The Council Plan is the Council’s main corporate planning document which underpins the County Durham Vision 2035.
• The draft plan was informed by feedback from a seven week public consultation and service engagement exercise which commenced on 29 July 2024 and ended on 15 September 2024.
• A range of data and information was used to inform the draft plan including the County Durham Vision 2035; the current Council Plan; relevant council strategies and plans; the Joint Strategic Needs and Assets Assessment (JSNAA); and a range of data from national sources.
• The revised draft plan contains 55 priorities (an increase of 13 from the previous plan).
• The plan contains a performance framework consisting of a range of primary (headline measures) and secondary indicators. During 2025/26 targets for the primary indicators will be developed based on local and national performance.
• The finance section of the plan will be updated following confirmation of the Local Government Financial Settlement (expected December 2024).
• Feedback from the public consultation highlighted topics the public would like to learn more about. The Council already provides much of this information, however, there is scope to make information more visible.

Community Engagement Review

The Corporate Overview and Scrutiny Management Board received an update on the Community Engagement Review project, in particular proposals for the governance, funding, and branding arrangements to replace Area Action Partnerships with a Local Network model.

The report highlighted the following key points:

• The new community engagement model was approved by Cabinet in July 2023 following a consultation on the findings of an independent review of the Council’s Community Engagement function.
• The Council’s Medium Term Financial Plan includes a savings target of £500,000 to be achieved by reducing the number of Area Action Partnerships from 14 to 12.
• 12 Local Networks (LNs), aligned to new electoral divisions, are proposed to replace the existing 14 Area Action Partnerships.
• A consultation on the proposed boundaries for the Local Networks was carried out between 5 July and 20 September 2024.
• The consultation identified one boundary that should be changed. The electoral division of Pelton should be included in the Local Network that covers the Chester-le-Street area rather than the Local Network that covers the Stanley area.
• The report sets out proposed Terms of Reference and Funding Guidelines for the Local Networks. These include the following key points:
  • Local Networks will be governed by Local Network Panels consisting of 21 members representing the community, councillors, and partners.
  • Local Network Panels will agree a four-year action plan for their Local Network.
  • Local Network funding will be allocated to projects which deliver the objectives of the Local Network’s four-year plan.
  • A new brand identity for the Local Networks is proposed. Each Local Network will decide the name of their network.

Resources - Quarter 2 September 2024: Forecast of Revenue and Capital Outturn 2024/25

The Corporate Overview and Scrutiny Management Board considered a report on the forecast revenue and capital outturn for the Resources Service Grouping.

The report highlighted the following key points:

• Resources are forecasting an underspend of £1.108 million (6.14%) against a revised budget of £18.044 million.
• This underspend reflects budget management to ensure the service remains within its cash limit and will be required in 2025/26 to fund one off Corporate BI project costs.
• The underspend is being achieved by holding vacant posts in advance of future Medium Term Financial Plan savings.
• Total capital expenditure for Resources to 30 September 2024 is £3.348 million, which is 57.56% of the revised budget.

Chief Executive’s Office - Quarter 2 September 2024: Forecast of Revenue and Capital Outturn 2024/25

The Corporate Overview and Scrutiny Management Board considered a report on the forecast revenue and capital outturn for the Chief Executive’s Office (CEO) Service Grouping.

The report highlighted the following key points:

• CEO are forecasting an underspend of £0.653 million (3.62%) against a revised budget of £18.059 million.
• This underspend reflects budget management to ensure the service remains within its cash limit.
• The underspend is being achieved by holding vacant posts in advance of future Medium Term Financial Plan savings.
  
• Total capital expenditure for CEO to 30 September 2024 is £0.496 million which is 25.86% of the revised budget.

Overview and Scrutiny Six Monthly Update

The Corporate Overview and Scrutiny Management Board considered a report setting out details of Overview and Scrutiny activity for the six month period to November 2024.

This report will be submitted to full Council on 22 January 2025.

Update in relation to Petitions

The Corporate Overview and Scrutiny Management Board noted a report setting out the status of petitions received by the Authority.

The Board noted that no petitions had been received since the previous update and that an e-petition relating to the demolition or compulsory purchase of the Station Hotel, South Hetton, will be presented to full Council on 11 December 2024.

Notice of Key Decisions

The Corporate Overview and Scrutiny Management Board noted a report on the list of key decisions that is scheduled to be considered by Cabinet.

The report highlighted that Cabinet is scheduled to consider reports relating to the following key issues in December 2024:

• Council funded advice and guidance options appraisal
• Medium Term Financial Plan – update on development and analysis of the Autumn Statement.
• Acquisition of property at Spennymoor for future education provision.

The report sets out details of other key decisions scheduled to be taken by Cabinet up to March 2025.