The Overview and Scrutiny Committee meeting focused heavily on the council's financial strategy and budget for 2026-2031, with significant concerns raised about a projected £88 million budget gap. Discussions also covered the council's approach to temporary accommodation, children's services, adult social care, and the ongoing challenges of funding local government.

Budget and Medium-Term Financial Strategy

The council's proposed budget for 2026-2031 and the 2025-26 budget management were central to the meeting. Councillor Barry Rawlings, Leader of the Council, outlined the severe financial pressures faced by local authorities, stating that council budgets in real terms were half what they were in 2010, leading to a significant hollowing out of services. He highlighted that while the current financial year's spending was under control, rising demand for statutory services, particularly in social care and temporary accommodation, alongside capital financing costs, had created an £88 million budget gap for 2026-27. Councillor Rawlings also noted that lobbying efforts had led to some success in the fairer funding policy statement, particularly regarding the inclusion of housing costs in deprivation measures.

Councillor Peter Zinkin, Leader of the Conservative Group, expressed strong concerns about the council's financial position, arguing that the council had not achieved a balanced budget but had instead filled a £55 million hole with borrowing. He projected that by 2030, the annual cost of minimum revenue provision and interest associated with forecast borrowing would reach £63 million, warning of financial disaster.

Councillor Simon Radford, Cabinet Member for Financial Sustainability, acknowledged the budget gap but stressed that it was largely demand-driven, not a result of profligacy. He explained that the council was effective at providing services but struggled to control the number of people presenting for them. He also highlighted the council's efforts to secure Exceptional Financial Support (EFS) from the government, noting that Barnet was considered a star pupil among boroughs applying for such support due to its strong Ofsted and CQC ratings and a clear plan for financial sustainability.

The meeting also touched upon the council tax referendum limits and the government's assumption of an average council tax of £2,000, which Councillor Zinkin argued was significantly higher than Barnet's current council tax and contributed to the deficit. Councillor Radford responded that the government's policy was to provide a bridging position to allow councils to plot their own path to financial sustainability, and that Barnet's application for EFS was expected to be successful.

Children's and Adult Social Care Pressures

Significant discussion revolved around the increasing demand and costs within children's and adult social care. Councillor Philip Cohen and Councillor Caroline Stock, from the Adults and Health subcommittee, raised questions about the robustness of savings projections, particularly regarding income maximisation from adult social care clients. Dawn Wakeling, Executive Director of Communities, Adults and Health, explained that income maximisation efforts included identifying those who should contribute to their care costs and speeding up financial assessments. She noted that Barnet was now above the London average for client income as a percentage of total care spend.

Councillor Stock also raised concerns about long-term health factors like obesity and diabetes, and their impact on future demand for services. Councillor Alison Moore, Cabinet Member for Adult Social Care and Health, acknowledged these pressures and highlighted the Neighbourhood Health Model as an opportunity to work more closely with GPs and community health services to identify individuals earlier and implement preventative measures.

In children's services, Councillor David Longstaff questioned the savings identified from stepping down external residential placements. Councillor Pauline Coakley-Webb, Cabinet Member for Family Friendly Barnet, explained that this was a net saving, taking into account new children entering the system, and that decisions were made on a case-by-case basis to ensure the best care for young people. The high cost of some placements, with one child's care costing £23,000 per week, was a point of concern, with explanations focusing on the complexity of needs, safeguarding requirements, and market issues leading to excessive profits by providers.

Temporary Accommodation and Housing

The escalating costs of temporary accommodation (TA) and housing benefit subsidy loss were a major focus. Councillor Ross Houston, Deputy Leader and Cabinet Member for Homes and Regeneration, presented the Temporary Accommodation Reduction Plan 2025-2030. He outlined measures to prevent homelessness, reduce demand, increase affordable housing supply, and address the gap between accommodation costs and Housing Benefit subsidy. Councillor Charlotte Daus highlighted that TA and housing benefit represented a quarter of the service pressures.

The plan included strategies such as service redesign, digitalisation of applications, family mediation, occupancy checks, and longer-term leasing arrangements with providers. Councillor Houston stressed the importance of lobbying central government on issues like the frozen Local Housing Allowance rates and the 90% Housing Benefit subsidy cap, which created an £11 million pressure for Barnet. The committee recommended increased lobbying efforts and resources dedicated to this issue.

Task and Finish Group Updates and Work Programme

Fiona Rae, Overview and Scrutiny Manager, presented updates on various Task and Finish Groups. The Fast Food Task and Finish Group was recommended for closure due to a lack of regulatory avenues and resources to achieve the desired impact. The Sustainable Travel Task and Finish Group was postponed to after the local elections. Cabinet responses to the Allotment Governance and Management, and Food Security Task and Finish Groups were noted, with several recommendations accepted, partially accepted, or not accepted by Cabinet. The Allotment Governance and Management Task and Finish Group's recommendations included actions for the Colindale Allotment and Garden Association (CAGA) to improve its governance and site management, with the Council reserving the right to intervene if progress was not made. The Food Security Task and Finish Group's recommendations for diversifying food aid models and identifying a corporate strategic lead for food security were partially accepted, with Cabinet noting that existing structures would be used.

The committee also reviewed the Cabinet Forward Plan and the Overview and Scrutiny Committee Work Programme for 2025-26. Several items were flagged for potential pre-decision scrutiny, including the Business Planning 2026-2031 Medium Term Financial Strategy, the Corporate Parenting Strategy, and the SEND and Alternative Provision pathway. The committee agreed to a recommendation to separate the monitoring of savings and pressures in adult social care, and to investigate the arrangements for the coroner's service. There was also a discussion about improving communication regarding council tax, particularly for new builds, and ensuring the council's financial position was clearly communicated to residents during the upcoming consultation.

Coroner Service

A discussion arose regarding the transfer of Metropolitan Police Service staff who undertake coroner services to the London borough jurisdiction. Councillor Dean Cohen raised concerns about this being a cost shunt from the Metropolitan Police to local government, with no legal basis for the police to stop this work. While the Chief Executive of London Councils was negotiating a transitional period, the council had no control over the transfer itself. It was confirmed that this would not change the structure of coroner services within London but would shift the responsibility and associated costs to local authorities.

Other Matters

The meeting also included discussions on the Parks and Open Spaces Strategy, with recommendations made to extend the consultation period and ensure better representation from all wards. The committee also reviewed the Chief Finance Officer's report on the 2025/26 Q2 Financial Forecast, noting improvements in forecasting methodology but reiterating concerns about the scale of the budget deficit. Recommendations were made to review one-off adjustments to understand the council's true financial position and to further assess the recoverability of debts, particularly from the NHS.

The committee agreed to a list of recommendations, including a briefing on the improvement partner Peopletoo, separating savings and pressures in adult social care, investigating coroner service arrangements, and ensuring clear communication about council tax and the council's financial position. The closure of the Fast Food Task and Finish Group was also agreed.