The Corporate Resources and Economy Scrutiny Committee (CRESC) convened to discuss the Leader's annual presentation, corporate performance, budget monitoring, capital budget monitoring, and the medium-term financial strategy. The committee noted the reports and discussed key issues such as poverty, housing, and financial challenges facing the council.

Leader's Report and Council Strategy

Councillor Una O'Halloran, Leader of the Council, presented a report highlighting the council's achievements, challenges, and future priorities. The presentation included a video showcasing Islington's purpose and values.

Key discussion points:

• Poverty: Councillor O'Halloran emphasised tackling poverty as a key driver, focusing on helping families break the cycle of poverty through job opportunities and addressing systemic issues. She noted that the council is working with health, finance, and other partners to achieve this goal.
• Workforce: The importance of shaping the workforce for the future was highlighted, with a focus on maximising the focus and energy of the council's 5,452 colleagues.
• Partnerships: The Leader stressed the importance of partnerships with various organisations, including central London forward¹, to address challenges such as the climate emergency and devolution.
• Fair Funding Review: Councillor O'Halloran addressed concerns about the fair funding review, assuring the committee that she has been actively lobbying the treasury to make a case for Islington. She stated that no council will be worse off and that the council will have a three-year settlement to plan for.
• Community Engagement: Councillor O'Halloran emphasised the importance of community engagement and empowering residents to shape the future direction of the council. She also hinted at plans for a fun event to celebrate the community.

Corporate Performance

Rachel Harrison, Deputy Director of Finance, presented the Q1 corporate performance report, focusing on areas facing challenges.

Key discussion points:

• Persistent Absence: The rate of persistent absence in primary and secondary schools remains a challenge. Initiatives such as attendance mentors and policy reviews are being implemented to address this issue.
• Care Leavers: The percentage of care leavers in education, employment, or training is also an area of concern. An improvement plan is in place to provide intensive support to young people with complex needs.
• Resident Experience: Challenges persist in resident experience, particularly in call answering rates and first contact resolution. Efforts are underway to improve digital solutions and streamline processes.
• Housing: Securing planning permission for 178 council homes is proving difficult due to the Finsbury Leisure Centre scheme not proceeding. However, other schemes are progressing well.
• Cycle Parking: The number of secure cycle parking facilities is behind target, but additional hangars are planned.
• Green Space: Providing 1.5 hectares of additional green space is also below target, but improvements are expected through a review of the planning process.

Budget Monitoring and Medium-Term Financial Strategy

Matt Hobson, acting director of finance, presented the Q1 budget monitoring report, the Q1 capital monitoring report, and the medium-term financial strategy (MTFS) update.

Key discussion points:

• General Fund: The General Fund is currently showing a £1.540m overspend for the quarter, mainly due to overspends in SEND transport and parking, offset by underspends in corporate items.
• Savings Delivery: The majority of savings are forecast to be delivered, but some are delayed or undeliverable.
• Capital Programme: The forecast capital outturn for the year is £254m. There has been some slippage into next year, particularly around the Finsbury Leisure Centre redesign.
• MTFS: The MTFS update highlighted a £75m net budget gap over the next five years, mainly due to inflation and demand growth. The report also noted the potential impact of the fair funding review.
• Housing Revenue Account (HRA): The HRA is forecasting an in-year deficit of £6.516m, mainly due to pressures related to damp and mould and disrepair cases.

Councillor Benali Hamdache, Leader of the Independent and Green Group, raised concerns about the increasing costs of disrepair cases and the financial risks associated with them.

Councillor Ruth Hayes, Chair of Environment, Climate Change and Transport Scrutiny Committee, questioned whether sufficient resources were being allocated to address seasonal peaks in resident contacts and whether more staff should be brought in to deal with the increased demand.

Councillor Ernestas Jegorovas-Armstrong raised concerns about school budgets and the potential impact on families and children with EHCPs[^3].

Building Control Charges

The committee also discussed and approved increased building control charges, as set out in Appendix B of the MTFS Update Report. The increase is intended to address a shortfall in the service's budget and ensure its financial sustainability.

Other Business

The committee also discussed the forward plan of key decisions and the scrutiny review tracker.

Councillor Gulcin Ozdemir, Chair of the Children and Young People Scrutiny Committee, noted that an update on SEND reforms would be coming to the committee and that there were no commitments to remove any EHCPs.

Councillor Nick Wayne, Chair of Corporate Resources and Economy Scrutiny Committee, requested feedback from the committee on how to improve the scrutiny of performance and financial performance.