The Audit, Standards & General Purposes Committee met to discuss internal audit standards, housing complaints, budget setting and standards of conduct. The committee approved the updated Internal Audit Charter, noted the progress in setting the budget for 2026 and future years, and reviewed recent whistleblowing referrals and standards complaints. The committee also reviewed the annual housing complaints report and self-assessment.

Budget Setting Progress

The committee received a progress report on budget setting for 2026 onwards, acknowledging the incredibly challenging financial environment facing the council. The report highlighted that government funding to councils has been cut by approximately 50% since 2010, while demand for services has risen.

The report to Cabinet titled General Fund Budget Planning & Resource Update - 2026-27 to 2029-30 indicated a budget gap of £39.8 million for 2026/27 and £95 million over the four-year period from 2026 to 2030. This gap is the difference between projected expenditure and projected income. The council is legally required to set a balanced budget each year.

The report noted that the council's reserves are at one of the lowest levels in the country, creating a situation of unsustainability. The council aims to increase its reserves to £15 million for the general fund and £10 million for the risk reserve by March 2029.

The report set out the following approach to tackling budget shortfalls:

• Addressing in-year budget pressures.
• Developing transformation plans.
• Generating capital receipts of £40-50 million over the medium term.

The report also included a number of assumptions, including:

• A council tax increase of 2.99% over the four-year period.
• An Adult Social Care Precept of 2.00% in 2026/27.
• A loss of revenue resources of £14.5 million over three years due to the Fair Funding Review¹ and Business Rates Reset².

The committee was asked to note the contents of the report and its appendix.

Internal Audit Standards

The committee reviewed the Global Internal Audit Standards (GIAS) Self- Assessment and Quality Assurance and Improvement Plan. The report set out the results of the Internal Audit Service's self-assessment against the new GIAS, along with details of any actions arising.

The report noted that all local authorities must make proper provision for internal audit, and that from 1 April 2025, the previous Public Sector Internal Audit Standards (PSIAS) were replaced with new GIAS.

The self-assessment found high levels of conformance, with none of the identified actions being considered significant. The committee approved the updated Internal Audit Charter, which has been reviewed to ensure that it reflects the new GIAS.

Housing Complaints Report

The committee reviewed the Annual Housing Complaints Report and Self-Assessment. The report covered the council's social landlord duties, which include 12,145 rented properties and 2,210 leasehold properties. The council is a member of the Housing Ombudsman scheme, which provides an independent service to investigate complaints.

The report included:

• The annual self-assessment against the Complaints Handling Code.
• A qualitative and quantitative analysis of the council's complaint handling performance.
• Any findings of non-compliance with the code by the Ombudsman.
• Service improvements made as a result of learning from complaints.

The report noted that in 2024/25, complaints related to repairs, maintenance, and property improvements remained the most reported issue, making up 68% of all housing-related complaints.

The committee was asked to provide comment on the report and self-assessment.

Whistleblowing Update

The committee received an interim update on the council's whistleblowing arrangements. The report provided data on whistleblowing referrals received since the council's updated Whistleblowing Policy was approved in April 2025.

For the period April 2025 to 31 August 2025, 10 whistleblowing referrals were received. The referrals were spread across the council's directorates, and there were no consistent themes arising from the referrals made.

The committee was asked to note the report, including the whistleblowing referrals and outcomes.

Standards Update

The committee received a Standards Update report, which provided a quarterly update on complaints received alleging that members have breached the council's Code of Conduct for Members.

Since the last update in June 2025, a number of complaints have been received. The complaints are being progressed by the office of the Monitoring Officer in accordance with the procedure governing member complaints.

The committee was asked to note the report.