The Business and Resources Overview and Scrutiny Committee are scheduled to meet to discuss the council's performance and finances in the first quarter of 2025/26, the budget development timeline, and the council's representation on outside bodies. They will also be reviewing their work programme.

Corporate Performance in Quarter 1 2025/26

The committee will be reviewing the Corporate Performance Report for the first quarter of 2025/26. The report suggests an overall positive position of performance, and the committee will be asked to note the performance relating to the delivery of the Cumberland Council Plan priorities as measured by key performance indicators.

The report notes that of 85 key activities detailed in the Council Plan Delivery Plan, 79 were rated green (on track) and 6 amber (just off track). 26 of 49 key performance indicators were green (on target), 13 were amber (close to target), and 10 were red (off target).

The measures rated red include:

• Percentage of Care Act assessments that lead to no further action ¹
• Percentage of contacts leading to referral (adult social care)
• Number of discretionary housing grants issued
• Number of Disabled Facilities Grants issued annually
• Percentage of children who received a two to two-and-a-half year review
• Number of days to process new Housing Benefit claims
• Number of days to process new Council Tax claims
• Number of days to process Housing Benefit change of circumstances claims
• Average time between placement order and match with adoptive family
• Building Control to decide all applications within statutory period of 5 weeks or 2 calendar months (with the consent of the applicant)

Adult Social Care operations will review the data to better understand the reasons for no further action and use the finding of the review to inform future improvement activity.

Adult Social Care is undertaking a review to better understand the relationship between contact and referral.

The reshaping will be influenced by the Our Future Cumberland process and to manage any potential impact on delivery, measures were recently agreed. These include responsibility payments to officers to take on extra work that is outside their remit and to recruit to a specialist prevention grant temporary role (outside the restructure) in the west.

Finance Report for Quarter 1 2025/26

The committee will be considering the Finance Report for Quarter 1 (April to June) 2025. The report informs members of the council's financial performance against budget for the period April to June 2025, along with the forecast position to 31 March 2026. The recommendations are that members note the contents of the report, and approve adjustments to the capital programme for 2025-26 totalling £7.482m, largely financed by grants.

The key messages of the report are:

• The Quarter 1 projected outturn is showing a potential adverse outturn of £12.005m.
• This represents a 3.4% adverse position against the council's current £357.614m net budget.
• If this position remains un-changed it would require an un-budgeted contribution from general fund balances of £12.005m, reducing them below the level for Adequacy of Reserves.
• Senior Leadership Team (SLT) have taken an action to review the current position and identify mitigating actions to recover this adverse variance position. The plan for these actions will be reflected in the Quarter 2 report.
• An underspend of (£111.394m) is forecast against the £329.642m Capital Budget at Quarter 1.
• £111.392m of this underspend relates to budgets which are subject to reprofiling adjustments (budgets that will be carried forward). The Quarter 2 report will form the request for carry forward once review activity has been completed.
• There is a resultant delay in the need to borrow £31.024m as a result of the potential forecast carry forward. This does not result in a reduction in the overall need to borrow, but does delay this to future years.
• Treasury management activities during the period were carried out in accordance with the council's treasury management and investment strategies and within the limits established by the approved Treasury and Prudential Indicators for 2025-26.

Directorate Variances

The report pack states that there is a projected adverse variance of £12.005m, by Directorate, with £4.378m of Directorate adverse variances and a further £7.627m in Corporate Savings due to in-year non-delivery.

The directorate with the largest forecast adverse variance is Children & Family Wellbeing, with £8.285m. This is attributed to:

• £1.107m in Education, SEND & Inclusion, including £1.038m risk that Emergency Schools Response costs associated with roof damage at a school, will not be funded by either insurance or reclaimed against the original contractors
• £7.459m in Children & Families, including £2.728m staff cost pressure largely in Support & Protect services for the use of EPWs², and £4.262m Cared for Children (CFC) cost pressure on homes.

Budget Development Timeline Update

The committee will receive an update on Cumberland's Budget Development Timeline. The report sets out the next steps in the council's strategic planning and budget setting process for 2026/27. It outlines the expectations for directorates, the timeline for developing savings proposals, and the support available from the Programme Management Office (PMO) and Finance Business Partners (FBPs). The report seeks scrutiny's recommendations on strengthening the process, ensuring robust challenge, and supporting the delivery of a balanced and sustainable budget.

The committee is asked to:

• Recommend that all directorates engage early and proactively with PMO and FBPs in developing savings proposals.
• Endorse the principles for constructing the budget, including a focus on sustainability, prevention, and value for money.
• Recommend robust challenge and assurance of all savings proposals, including risk assessment and deliverability.
• Request regular updates on progress and risks throughout the budget setting process.

The principles agreed for constructing the budget are:

• Balance the budget— minimising reliance on unsustainable one-off measures (e.g., reserves or exceptional support).
• Protect the vulnerable—ensuring fairness and safeguarding essential services.
• Support financial sustainability—with a long-term focus.
• Invest in prevention and early intervention—to manage demand and improve outcomes.
• Maximise value for money—with measurable outcomes.
• Enable transformation and innovation—embracing new ways of working.
• Be evidence-driven—using data, trends, and scenario testing.
• Maintain adequate reserves and manage risk—with clear risk appetite.

Outside Bodies

The committee will receive an update report on the Outside Bodies and their council representatives. Outside Bodies are those external organisations and partnerships to which the council appoints a member, including such organisations as trusts, voluntary bodies, charities, community organisations and companies.

The report provides members with information regarding those Outside Bodies to which the council appoints representatives so that recommendations may be made as to future appointments. The committee is asked to review the information provided in the report and agree recommendations as to which of the bodies listed should continue to receive council appointments.

The report notes that at a meeting on 15 July 2025, the Executive noted that the following outside bodies no longer required council appointment, and these have been removed from the list:

• Botcherby Community Centre Management Committee
• Greystone Community Centre
• Westfield Housing Association
• Brampton and Beyond Community Trust

The report pack states that looking at the responses, it can be seen that some bodies have either not met at all throughout the year or the appointed representative did not attend any meetings, and consideration should be given to whether members should continue to be appointed from April 2026.

Scrutiny Overview and Work Programme Report

The committee will consider the update report and review the draft work programme. The committee is asked to:

• Consider any relevant items on the most recent Forward Plan of Key Decisions for comment or inclusion in the work programme.
• Note progress on resolutions from previous meetings.
• Agree any changes to the work programme for 2025/26.
• Review information presented within the report in relation to the development of the committee's work programme and comment on the work programme, in particular on items for the next committee meeting.

The report pack notes that the topics under consideration for the 2025-2026 work programme include further work on items related to the Transformation Programme, including aspects of the People and Culture theme particularly workforce roles which are difficult to recruit to, sickness absence reductions, further improvements to the budget consultation process, procurement and contracts compliance.