Here's a summary of the items scheduled for discussion at the Corporate Overview and Scrutiny Management Board meeting on 2 October 2025. The meeting was scheduled to cover a range of financial and performance matters, as well as a review of scrutiny arrangements. Note that this summary is based solely on the agenda and associated reports, and it is not possible to know what was actually discussed or what decisions, if any, were made.

Medium Term Financial Plan and Budget Update

The board was scheduled to consider the Medium Term Financial Plan 16 and 2026/27 Budget Update report. The report provided an update on the development of the 2026/27 budget and the Medium-Term Financial Plan (MTFP(16)) covering the period 2026/27 to 2029/30. This included proposals for a first-phase consultation on the budget position.

The report also set out proposed changes to the Empty Property Premium Charge Section 13A (1)(c) Reduction Policy, regarding the introduction of premiums on second homes from 1 April 2025, and considering government guidance.

The report noted that the council's medium term financial position remained challenging and uncertain. The government's Comprehensive Spending Review stated that Local Government Core Spending Power (CSP) would increase, but this assumed councils would increase their council tax by the maximum permitted level. The report stated that the government expected councils to increase their council tax by 5% per annum across the next three years.

The report also referred to the government's consultation on the reform of local government funding in England, known as Fair Funding Review 2.0 (FFR 2.0). The report stated that analysis of the consultation proposals indicated that the Council was likely to benefit from the proposed redistribution of funding allocations for local government.

The report included a series of savings proposals which were approved by the previous County Council in February 2025, which total £5.662 million. These savings have been reviewed in detail by the Cabinet since its election in May 2025 and in some cases savings proposals previously approved have been withdrawn to reflect the new priorities of the Cabinet. However, most of the proposed savings previously agreed are to be taken forward. These proposals will be consulted upon as part of a first phase of budget consultation that is set out in this report.

The report recommended that the Cabinet:

• note the MTFP(16) forecasts and the requirement to identify additional savings of £71.019 million across the period 2026/27 to 2029/30, based on no increases in council tax;
• note that these forecasts could change significantly based upon decisions on council tax, tax base growth, the outcome of Fair Funding Reforms, updates to assumptions around social care and school transport costs, changes to waste management funding and management options, and the wider impact of demand for services and inflationary pressures;
• note the impact on the MTFP(16) forecasts from council tax increases, up to the referendum limits and government expectations of a 5.0% per annum;
• note the assessment of the potential impact of the Government's recent consultation on Fair Funding Reforms and the detailed response submitted by the Council;
• note and agree the updated list of previously agreed savings planned for as part of MTFP(15) which impact on the years in scope for MTFP(16);
• approve the approach outlined for consultation on the 2026/27 budget and MTFP(16) proposals, including the £5.662 million of savings originally approved by the Council in February 2025;
• note that additional savings proposals will be considered by Cabinet on 19 November 2025 and will be subject to a separate consultation in late November 2025 through to January 2026;
• consider the equalities impact assessment considerations;
• agree the high level MTFP(16) and 2026/27 budget setting timetable; and
• note the information relating to Section 13 (a) Council Tax, including the options for change available in relation to the Council Tax Empty Property Premium Charges Section 13A Reduction Policy.

Quarterly Revenue and Capital Budget Reports

The board was also scheduled to review three quarterly revenue and capital budget reports:

• Q1 2025/26 Corporate Revenue and Capital Budget Report
• Q1 2025/26 Chief Executive Revenue and Capital Budget Report
• Q1 2025/26 Resources Revenue and Capital Budget Report

These reports provided details of the updated forecast revenue and capital outturn budget positions for the council, the Chief Executive's Office, and the Resources service grouping, highlighting major variances in comparison with the budget based on the position to the end of June 2025.

Quarterly Performance Management Report

The board was scheduled to consider the Q1 2025/26 Performance Management Report. The report informed members, senior managers, employees and the public of the council's progress towards achieving its strategic ambitions and objectives.

The report contained the most recent performance data available on 30 June 2025, alongside contextual information of activities and events taking place in the first quarter of the 2025/26 financial year (April to June).

The report noted strong performance across the council's five key strategic ambitions: Reforming the Council, Supercharging Our Economy, Building Better Communities, Caring For Our People, and A Practical Environmental Stewardship.

Notice of Key Decisions

The board was scheduled to consider the Notice of Key Decisions report. The notice of key decisions that was attached to the report, was the latest to be published prior to the papers for the Board being dispatched to members. The notice complied with the requirements for Cabinet to take key decisions at its meeting scheduled to be held on 15 October 2025, and contained information on those key decisions that were currently scheduled to be considered by the Executive up to January 2026. Key decisions listed in the appendix included:

• Council Plan 2025 - 2030
• MTFP - Update on development of MTFP including analysis of the Autumn Statement 2025/26 and MTFP 16 savings proposals
• Council Tax Base 2026/27 and Forecast Surplus / Deficit on collection Fund
• Review of the Local Council Tax Reduction Scheme 2025/26
• Poverty Strategy Consultation
• MTFP - details of Provisional Finance Settlement 2025/26
• Consultation of Proposed Charging for Fleet Transport Provision to Day Centres

Review of Overview and Scrutiny Arrangements

The board was scheduled to consider a report on a review of the Council's Overview and Scrutiny arrangements in light of feedback from members following the first cycle of Scrutiny meetings held in June and July 2025.

The report noted that following the Durham County Council elections in May 2025, the political leadership of the Council had changed with Reform UK now the majority political group. The Chair and Vice Chair of Corporate Overview and Scrutiny Management Board (COSMB) had reflected on the structure of Overview and Scrutiny Committee arrangements following the first cycle of Committee meetings in June and July 2025, and wished to undertake a review of these arrangements and in particular examine how scrutiny can be improved.

The report summarised the issues identified by members following the first cycle of Overview and Scrutiny meetings and invited Constitution Working Group (CWG) to agree to undertake a further review and audit of the meetings schedule for the Council including scrutiny and specifically how the scrutiny structure and function can be improved.

The report also included consideration of an approach suggested by the Chair and Vice Chair of COSMB which was discussed with the Director of Legal and Democratic Services and Democratic Services Manager/Statutory Scrutiny Officer on 15 September and shared with Constitution Working Group on 19 September 2025.

The proposals included the early examination of priority scrutiny issues and reports by adopting a working group approach with a reduced number of members which would feed into the formal Overview and Committee meetings. It has been suggested that this new approach be piloted with the Adults Wellbeing and Health OSC (AWHOSC) and that discussions take place with the Chair and Vice Chair of COSMB, AWHOSC and service grouping colleagues and the Overview and Scrutiny team on the operation of the pilot and its subsequent evaluation.

The Corporate Overview and Scrutiny Management Board was recommended to note the information detailed within the report including the proposed review/audit of the Council's meetings schedule and specifically the arrangements for Overview and Scrutiny including a pilot approach to be adopted with the Adults Wellbeing and Health Overview and Scrutiny Committee.