The Public Accounts Select Committee met to discuss the council's financial performance, savings proposals, and future work programme. The agenda included reviewing the 2024-25 financial outturn, discussing the medium-term financial strategy, considering budget savings proposals for 2025-26 and 2026-27, and planning the committee's work programme for the upcoming municipal year.

Financial Monitoring 2024-25 Outturn

The committee was scheduled to review the draft financial outturn position for the 2024-25 financial year, as of 31 March 2025. The report included updates on the General Fund, Dedicated Schools Grant (DSG), Housing Revenue Account (HRA), Collection Fund, and Capital Programme, as well as the council's debt position.

Key points from the report pack included:

• A General Fund overspend of £19 million after using £13.2 million from corporate provisions and reserves.
• A £3 million overspend in the Dedicated Schools Grant due to pressures on the high needs block.
• A Housing Revenue Account surplus of £0.5 million.
• Collection rates for council tax and business rates being below targeted levels.
• A recommendation to approve the write-off of specific business rates and Adult Social Care sundry debts over £50,000, totaling £406,000.

The report pack noted that the financial position reflected the impact of severe financial constraints on council services, despite increasing demand from a growing population.

Medium Term Financial Strategy and Period 2 Financial Monitoring

The committee was scheduled to discuss the draft Medium Term Financial Strategy (MTFS) for 2026/27 to 2029/30, along with the first financial monitoring report for 2025/26, as of the end of May 2025.

Key discussion points were to include:

• The uncertainty of future government funding and its potential impact on the forecast balanced budget for 2026/27.
• The presentation of the draft MTFS to the Mayor and Cabinet on 9 July 2025.
• The revision of the budget gap in the current MTFS once more information on funding reform becomes available.

The report pack highlighted challenges in forecasting and allocating resources due to changes in government funding arrangements, including the Local Government Funding Reform and the Business Rates Reset. It also noted that the current financial outturn forecast for 2025/26 showed a £7.1 million underspend.

Budget Savings Proposals

The committee was asked to consider draft proposals for budget savings for 2025/26 and 2026/27. These proposals aimed to address a £30 million budget shortfall identified when setting the council's 2025/26 budget.

The report pack indicated that £29.250 million of general fund savings and £4.784 million of HRA savings had been identified. These included £6.670 million of general fund savings and £3.609 million of HRA savings proposals for 2025/26, as well as a further £22.580 million of general fund savings and £1.175 million of HRA savings for 2026/27.

The report pack included a recommendation for the Public Accounts Select Committee to review the report and appendices, and any views of the Select Committees, and consider whether they wish to refer these to Mayor and Cabinet on the 9th July 2025.

The report pack also included a list of savings proposals requiring member decision, and savings proposals requiring officer decision.

Select Committee Work Programme

The committee was scheduled to discuss its priorities for the 2025-26 municipal year and agree on an annual work programme.

The report pack asked the committee to consider the themes set out in the draft work programme, discuss the committee's priorities and agree a work programme for 2025-26, and consider opportunities for additional informal information gathering sessions, public engagement, and visits.

The report pack also included a list of suggestions made by the committee at the last meeting of 2024-25, including a digital strategy update, and social value and the asset management strategy. It also included a list of issues arising as a result of previous scrutiny, including customer and resident experience, and the housing revenue account budget.

The report pack also included a list of different types of scrutiny, including policy development and pre-decision scrutiny, performance monitoring, task and finish groups, and information items.