The Overview and Scrutiny Board met on Thursday 09 October 2025 to discuss progress on budget savings, corporate HR metrics, and the council's improvement and transformation plan. Key discussions included noting the progress on achieving £10.254 million in savings for the 2025/26 budget, with a significant portion rated as green or amber, indicating good progress or potential for delivery. The board also reviewed HR metrics, noting a reduction in agency worker numbers and a decline in sickness absence days, aligning with national benchmarks.

Budget Savings Update

The board received an update on the progress of delivering the £10.254 million in savings agreed for the 2025/26 budget. As of the end of Quarter 3 (June), £4.838 million had been rated as green (on track), £3.743 million as amber (potential for delivery with further work), and £1.673 million as red (unlikely to be delivered in 2025/26). Officers expressed hope that most amber savings would be achieved, while those rated red were already being incorporated into budget planning for the next financial year.

A detailed breakdown of the library savings target of £0.3 million over two financial years was provided. The majority of this saving relates to staffing reductions following the closure of three branch libraries, with permanent staff being redeployed to vacant positions. The report noted that no permanent staff were made redundant as part of this process.

The Place summary indicated that a saving of £0.027 million related to encouraging voluntary and community sector organisations to bear a higher proportion of their rental costs would not be delivered in 2025/26. In the People services summary, a significant portion of savings were rated amber, including £1.1 million from targeted reviews in Adult Services and £0.5 million from the Transition savings (Adults) initiative, which were unlikely to be fully achieved in the current financial year. The Housing Demand saving of £0.180 million and the Family Welcome Centre saving of £0.466 million were also rated red, with delays in modular unit delivery and construction pushing their realisation into the 2026/27 financial year.

Corporate HR Metrics – Agency Workers and Sickness Absence

The board reviewed corporate HR metrics concerning agency workers and sickness absence. The proportion of agency workers in the total corporate workforce had fallen to 12.7% (399 workers) by August 2025, the lowest figure since 2018. Spend on agency workers had also decreased, with a reduction of £307,959 across June, July, and August 2025. The primary driver for engaging agency workers was identified as Project/Additional Work (89.6%), with Sickness/Absence Cover accounting for a very small proportion (6.897%).

Sickness absence data showed a decline in full-time equivalent (FTE) sick days taken, falling to 9.4 days per employee for the rolling 12-month period ending August 2025, which aligns with national benchmarks. While the number of sickness episodes remained steady, the total number of sick days taken had gradually declined. The report noted that it was not currently possible to analyse the impact of home working on sickness absence due to data limitations.

Improvement and Transformation Plan Progress Update and CIPFA FM Review

The board received an update on the council's Improvement and Transformation Plan, which incorporates recommendations from the CIPFA Financial Management Review. The plan outlines progress on various objectives, including the development of a data centre, reducing wasteful spend, and transforming service delivery.

A key action regarding the Data Centre and Thames Freeport noted that lobbying central government for inclusion in the Thames Freeport had yielded no positive outcome to date. SPC consideration for the data centre was expected in January 2026.

Under Reducing Wasteful Spend, the report detailed efforts to reduce agency and consultancy costs, with agency workers now representing 14% of the workforce. While overall spend had risen due to pay rate uplifts, significant savings had been achieved through retaining an 8% agency levy centrally and by converting agency staff to fixed-term or permanent contracts.

The Health and Social Care section highlighted progress in social care placements, with reviews of high-cost placements leading to measurable savings. The Triggers for Care project, aimed at linking health and social care data to inform population health management interventions, was progressing, with data analysis underway.

The Agile and Engaged Workforce section detailed ongoing efforts to embed a new Learning Experience Platform and leadership programmes. Communication channels such as Let's Talk sessions and staff forums were highlighted as successful in engaging employees.

The CIPFA FM Review identified several key risks, including the need for a formal review against the CIPFA financial management code and increased investment in preventive services. The Starting Well Improvement Plan was subject to strong monitoring and governance, with a focus on leadership and manager engagement.

Cabinet Responses to Scrutiny Recommendations – Havering Volunteer Centre and Scrutiny Process

The board reviewed Cabinet's responses to scrutiny recommendations concerning the Havering Volunteer Centre (HVC) and the scrutiny process itself. Cabinet agreed to conduct a deep dive into the HVC's funding and role and provide a formal response within four weeks. Cabinet expressed reservations about requiring Cabinet Members to attend every scrutiny meeting and providing questions in advance, citing practicality and statutory reporting timelines. Cabinet agreed to develop a protocol for working practices between Cabinet and the Overview and Scrutiny Board to address gaps in the constitution regarding the handling of scrutiny recommendations. Training sessions were planned for Cabinet and scrutiny members to clarify roles and responsibilities. Discussions also touched upon the HVC's premises, with ongoing contact between council officers and HVC representatives to explore alternative locations and rental arrangements. While market rates were being considered for the HVC's premises, the possibility of an altered rate based on the HVC's social contribution was to be investigated.