The Corporate Scrutiny Committee met on Monday 26 January 2026 to review the council's draft budget for 2026/27 and its medium-term financial plan. The committee approved recommendations relating to the General Fund Draft Budget Update Report and the 2026/27 Draft Budget - Final Scrutiny.

General Fund Draft Budget Update Report 2026-27

The committee received an update on the draft General Fund budget for 2026/27 and the Medium-Term Financial Plan. Officers presented a report detailing revised financial positions following the provisional Local Government Finance Settlement. While the overall position had improved compared to earlier projections, a significant medium-term budget gap remained. The report highlighted that the modelling assumed annual Council Tax increases at the maximum permitted threshold.

Members raised concerns about the complexity of the settlement, including changes to grant structures and adjustments to relative needs formulae. Questions were posed regarding the Council's strategy for addressing the remaining medium-term budget gap, the predictability of future costs, particularly in social care, and the extent to which preventative services could reduce future demand. The impact of population growth and business rates retention were also discussed. Officers clarified that earlier modelling was based on consultation proposals that had subsequently changed. They assured the committee that the Council continuously worked to identify efficiencies and transformation opportunities.

The committee resolved to note the updated draft General Fund budget position and the updated draft Dedicated Schools Grant (DSG) budget position for 2026/27.

2026/27 Draft Budget - Final Scrutiny

The committee undertook its final scrutiny of the Draft Budget 2026/27, Medium-Term Financial Plan, and Capital Programme 2026–2030, alongside the Housing Revenue Account (HRA) Draft Budget and the draft report from the Budget Scrutiny Panel. It was noted that the committee had previously acted as the Budget Scrutiny Panel, examining high-risk budget areas and making recommendations that had been accepted by the Executive.

Discussions included capital investment approaches, such as acquiring assets to reduce long-term revenue costs, and the potential for properties acquired for homelessness prevention to be considered assets. Members expressed interest in how capital investment supports prevention and reduces long-term revenue pressures. Questions were also raised about whether retaining 100% of business rates would significantly improve the Council's financial position. Officers clarified that properties acquired for service delivery remain Council assets and that retaining 100% of business rates would make a significant difference, although such a system could disadvantage authorities with limited growth capacity.

The committee resolved to consider the Draft Budget 2026–27, Medium-Term Financial Plan and Capital Programme 2026–2030, and to make any additional recommendations for the Executive. They also resolved to consider the Housing Revenue Account Draft Budget 2026–27 and Medium-Term Financial Plan proposals, making further recommendations for the Executive. Finally, the committee resolved to receive and note the draft report from the Budget Scrutiny Panel.

Corporate Scrutiny Work Plan

The committee reviewed its Corporate Scrutiny Work Plan. Upcoming meetings were noted to include financial performance and KPI monitoring. Members supported the suggestion of informal sessions to improve understanding of the Council's budget structure and endorsed the proposal to include the draft Annual Delivery Plan and enabling strategies within the future work programme.

The committee resolved to note the Scrutiny Work Plan as it relates to the Corporate Scrutiny Committee.

The meeting concluded at 8:07 pm.