The Performance, Assets and Strategy Overview and Scrutiny Committee met to discuss the upcoming budget consultation for 2026-27, procurement processes at Cambridge City Council, and the Civic Quarter project. Councillors reviewed the strategic approach to budget setting, including savings targets and public consultation plans, and received an update on the strategic procurement pipeline for repairs, maintenance, and compliance contracts. The committee also examined the latest proposals for the Civic Quarter, including designs for the Guildhall, Market Square, and Corn Exchange, and considered financial modelling for the project's next stage.

Budget Setting Consultation 2026-27

The committee received an update on the budget-setting timetable for 2026-27. Officers explained that a report outlining the timeline would be presented to the cabinet in July 2025, and that an ambitious programme of savings was already in place . The committee was informed that quarterly financial monitoring by the cabinet would be introduced from September 2025, and that financial reporting would be embedded in the performance management framework from the second quarter onwards.

A report titled Budget Setting Context 2026/27 set out the savings targets for the General Fund for the next five years, which have been reviewed considering updated economic forecasts, government consultations on local government funding reform and business rates retention, and other information. This review has resulted in a new headline savings target of £1.5 million per year over the next two years.

The report also recommended undertaking a detailed review of the 30 Year Business Plan for the Housing Revenue Account (HRA) over the summer, using external advice where appropriate.

The committee discussed the alignment of the Housing Revenue Account and the General Fund. It was clarified that while the two remained legally separate, the processes for their management and oversight would be synchronised. The committee also considered the timing of the Medium Term Financial Strategy, and officers confirmed that it would be refreshed in the autumn and presented to the council in February 2026 to allow forecasting and final budget-setting to be aligned more effectively than in previous years.

Strategic Procurement Pipeline for Repairs, Maintenance, and Compliance Contracts

The committee received a report on the strategic procurement pipeline for repairs, maintenance, and compliance contracts. The report sought formal approval and delegated authority to proceed with the procurements and award the resulting contracts, ensuring best value for the council.

The report presented a schedule of approximately 13 contracts with a combined value of approximately £74m that will be let as a coordinated programme over the next six months.

The Strategic Procurement Pipeline for Repairs Maintenance and Compliance Contracts includes the following services:

• Asbestos Removal
• Asbestos Surveying
• Water Testing
• Heating Services Maintenance
• Fire Remediation
• Damp and Mould Surveying and Remediation
• General builders' disrepair rectification works
• Voids Contract
• Drainage

A supplier engagement event is planned for early to mid-September to alert the marketplace to the forthcoming procurement opportunities and to encourage a wide and competitive field of bidders.

Civic Quarter Project Update

The committee received an update on the Civic Quarter project, a plan to regenerate the city centre. The project includes significant investment in the public realm, creating a modern market square, transforming the Corn Exchange, opening up the Guildhall to the community, and providing an option for the headquarters for a new unitary council¹. The total projected expenditure for the design, build, and associated costs to complete all three projects is £92.275m. This includes £4.4m required for technical design and the development of contract sum proposals.

The proposals for the Guildhall include conserving and modernising the Grade II listed building to operate at net zero operational carbon, making it accessible to wheelchair users, a new customer service centre, a public cafe, and a Changing Places toilet². The proposals for the Market Square build on the vision for a bustling seven-day market which is an accessible, attractive, welcoming, exciting and safe place to visit, shop and gather during the day and into the evening. The setts will be preserved but made accessible, with covered seating provided by parasols and new trees around the fountain which will be brought back into use. A total of 96 new stalls are proposed.

Proposals to improve the Corn Exchange include energy-saving measures, accessibility in all areas, and better sound quality and new audio-visual systems for events. Also, introducing more concessions and bar areas will enable quicker service and more food and drink options.

The proposals for the public realm for the civic quarter will be the most transformative change in the city centre for 50 years with a shared surface restricting traffic to the civic quarter area. Proposals include increasing Blue Badge Parking and cycle parking and a biodiverse route along Peas Hill and St Mary's Street/ Market Street.

Four options have been considered by officers:

1. Do nothing – project is paused.
2. Recommend approval for a capital budget of £92.3m, submit planning for all three assets and associated public realm, continue with technical design to develop a contract sum proposal for cabinet approval in September 2026.
3. Recommend approval for partial investment – to reduce the scope by excluding one or more of the assets, submit planning for all three assets and associated public realm, continue with technical design to develop contract sum proposals with a reduced scope for approval in September 2026.
4. Recommend approval for a capital budget of £4.4m only, submit planning for all three assets and associated public realm, continue with technical design to develop a contract sum proposal for cabinet and council approval in Autumn 2026.

Officers did not recommend Option 1 or 3.