The Overview and Scrutiny Committee of Hertfordshire Council held evidence-gathering sessions on Tuesday 03 February 2026 to scrutinise the 2026/27 budget and Medium Term Financial Strategy. The committee reviewed proposals across several portfolios, including Children's Social Care, Education, SEND & Inclusion, Highways, and Environment, Transport & Growth. Key discussions focused on budget allocations, service delivery, recruitment and retention challenges, and the financial sustainability of various council services.

Children's Social Care

Discussions in the Children's Social Care session centred on the budget for foster carers, care leavers, and the recruitment and retention of professional staff. An uplift of £1.4 million for foster carer allowances was detailed, with a portion covering a Department for Education uplift of 6.88% and another 3% for cost-of-living increases. Progress was reported on foster carer recruitment, with 34 approvals forecast for 2025-26, an increase from 21 the previous year. The NEST (Nurture, Empathy, Trust, Support) programme and emergency foster care initiatives were highlighted for their positive outcomes and cost savings.

Regarding care leavers, clarification was sought on how expenditure is reflected in the budget. It was explained that staffing costs for the care leaver team, amounting to nearly £2 million, are included under the safeguarding budget line, while direct support and spending for care leavers totals just over £1 million, allocated to the CLA and leaving care objective line. Investment in the care leaver service has expanded, including additional management capacity, dedicated education, employment, and training workers, and mental health support. The percentage of care leavers in education, employment, or training has increased to 60%, up from around 50%. A council tax exemption for care leavers up to the age of 21 was confirmed to be accounted for over the medium-term financial plan.

The committee also discussed challenges in recruiting and retaining key roles within children's services, such as social workers and residential care workers. While Hertfordshire's turnover rate (10%) and agency rate (6%) are better than statistical neighbours, the underlying causes of difficulties were identified as work-life balance, caseloads, salary, and career progression opportunities. The council's workforce development strategy aims to address these through a grow-our-own approach, including apprenticeships and academies, with 130 individuals completing apprenticeship programmes since 2021.

Education, SEND & Inclusion

The session on Education, SEND & Inclusion focused on investment in Special Educational Needs and Disabilities (SEND) services. A £6.3 million investment is planned to expand the SEND workforce, including 30 additional EHC coordinators and 12 review officers. £2.3 million is allocated to school-based SEND services to improve communication and early dispute resolution, and £1.36 million to the educational psychology service, increasing its capacity by 80%. A significant portion of the investment, around £1 million, is earmarked for children missing education, aiming to enhance oversight and coordination for those educated outside of school or electively home-schooled.

The council anticipates delivering 625 new specialist places in the last two years, with a further 465 planned. An investment of £140 million is proposed for facilities to create an additional 1150 specialist places in mainstream and specialist schools. The council is confident that these investments will reduce pressures and meet rising demand, particularly for children missing education.

Regarding home-to-school transport, a £3.4 million investment is planned, representing a 9.3% increase. This funding is targeted at inflation and demographic growth, ensuring the service can operate safely and effectively. The council is strongly encouraging the use of Personal Travel Budgets (PTBs), with uptake increasing from 251 families in 2021 to over 950. For 16 to 18-year-olds, PTBs will become the default option from September 2026, with a clear appeals process and improved digital systems.

The high needs block deficit was a significant concern, with Hertfordshire being one of the worst-funded authorities nationally. The mismatch between grant funding growth and the increase in need and expenditure has led to a projected deficit of £89 million for the current year, potentially rising to £90 million next year. Mitigation strategies include promoting mainstream inclusion and increasing capacity in specialist resource provisions and special schools to reduce reliance on more costly independent provision.

Highways

The Highways portfolio discussions covered the locality budget, maintenance, and street lighting. The Highways Locality Budget (HLB) will see a £5,000 increase, bringing the total to £95,000. While not an inflation-linked increase, this is the first rise in the HLB, and members are protected from inflation increases on agreed schemes during the financial year. The council is exploring batching purchasing power for items like bollards and white lining to mitigate the effects of inflation. A £1.5 million addition has been made to the highways budget for inflation, covering current figures as of October 2025, and a separate index based on construction prices is used for calculating highways inflation.

Concerns were raised about the deliverability of the proposed 200 additional 20 mph zones, with requests for more detail on timelines, resource allocation, and lessons learned from previous rollouts. The council is confident in its ability to deliver these schemes by minimising physical interventions and relying more on traffic order processes.

The council's approach to pothole repairs and maintenance was discussed, with a £700,000 allocation (potentially rising to £1 million) for road mender to address potholes on concrete sub-base roads. While acknowledging that not all repairs will last indefinitely, the council has quality controls in place with contractors, achieving a 96% pass rate for audits. The budget for grass cutting has been reduced, a decision regretted by some members, but the council will monitor its impact.

A backlog in street lighting maintenance was discussed, attributed to delays in obtaining parts. The council is working with contractors and suppliers to minimise lead times and improve communication with residents about repair timelines. The integrated works programme prioritises network maintenance based on asset management criteria, aiming to elongate the life of roads and ensure safety.

The budget for bridge asset management and maintenance remains flat, with a £1.4 million allocation, reflecting a prioritisation of road maintenance due to budget constraints. The council is exploring working smarter, such as undertaking night-time works, to achieve savings.

The income from fines related to the New Roads and Street Works Act (NRswa) is projected to increase due to higher fees and more robust enforcement, not necessarily an increase in roadworks. The council is also exploring the potential impact of the UK Emissions Trading Scheme (ETS) on waste disposal costs, which could represent a significant financial pressure. Mitigation efforts include lobbying the government, promoting waste reduction at the source, and exploring carbon capture technologies.

Environment, Transport and Growth

Discussions on Environment, Transport and Growth covered active travel, waste management, and sustainable transport. The council is using the Active Travel Fund to develop schemes, with a focus on Local Cycling and Walking Infrastructure Plans (LCWIPs) to identify priorities. While there isn't a pool of shovel-ready schemes, there are developed ideas being progressed to be ready for funding opportunities. Community engagement is crucial for active travel schemes, with efforts to improve communication and involve residents, particularly school children, in the design process. The council is also ensuring that new developments incorporate active travel infrastructure from the outset through its Place and Movement Plan and Design Guide.

The waste budget is largely demand-led, with projections based on historical data and service changes. The Eastern Waste Transfer Station is expected to deliver anticipated savings. The council is confident that proposed budget changes will not negatively impact the convenience of waste services for residents. The potential financial implications of the UK Emissions Trading Scheme (ETS) were highlighted as a significant risk, with ongoing lobbying and modelling to understand its full impact.

The Bus Improvement Plan (BIP) is delivering enhancements through improved ticketing, marketing, new routes, and physical infrastructure such as bus gates and hospital interchanges. Demand Responsive Transport (DRT) is being expanded with additional vehicles to improve responsiveness, with data from DRT usage informing the development of future scheduled routes. The council is also engaging with employers to encourage staff to use public and active transport.

The budget includes funding for e-bike hire schemes in various locations, which provide valuable usage data to inform transport planning. Community education and engagement play a vital role in promoting alternative travel modes, with a dedicated budget of £200,000 for the school travel planning team. The council is also exploring ways to support car users, though the focus of the Environment, Transport and Growth portfolio is on active and public transport.

Recommendations

Following the evidence-gathering sessions, several recommendations were put forward for further consideration:

• Children's Social Care:

  • Improve transparency regarding care leaver funding.
  • Ensure proper monitoring of the additional funding for recruiting and retaining foster carers.
  • Maintain a continued focus on staffing recruitment and retention.
  • Provide more detailed information on the split of the £16 million investment between children looked after and disabled children, including numbers of children in each category and those who are both disabled and looked after.

• Education, SEND & Inclusion:

  • Provide more detailed information on the ESI savings programme, particularly regarding references to S105.
  • Clarify the rationale behind the proposed budget for school building maintenance, including the phasing of programmes and the underspend in earlier years.
  • Provide more detail on the wider savings across services, as referenced in S105.
  • Clarify the specific use of the £1 million allocated for innovation within the SEND strategy, including the advancement of plans and potential future savings.
  • Provide more detail on the projected increase in demand for SEND services and how this feeds into budget proposals.
  • Clarify the budget for the internal fleet for home-to-school transport, including whether growing the fleet could lead to further long-term savings.
  • Provide more detail on the ESI savings, particularly those dependent on grant settlements.
  • Provide more detail on the projected impact of government reforms, particularly concerning the high needs block sustainability, once information becomes available.

• Highways:

  • Provide further clarification on the modernization scheme for street lighting, including timelines for delivery, and the deliverability and prioritisation of winter maintenance.
  • Clarify the makeup of the £10 million contingency, including how much is allocated to risk and how much to highways.
  • Provide further clarification on the Highways Locality Budget (HLB) uplift, including its composition and the rationale for the chosen level.
  • Provide further clarification on grass cutting budget reductions.
  • Express concern regarding the vulnerability of the planned highways programme to inflation in construction materials, particularly in light of global events.

• Environment, Transport and Growth:

  • Provide more detail on lessons learned from previous rollouts of 20 mph zones and their impact on the feasibility of delivering 200 additional schemes.
  • Provide more detail on the community education and awareness strategy, including identifying specific communities where engagement is challenging and exploring the potential for school children to create educational videos.
  • Clarify the council's approach to future planning and responsibility for waste management, particularly concerning the transition to unitary authorities.
  • Conduct a survey to assess the potential for additional stops on existing Demand Responsive Transport (DRT) routes.
  • Provide more detail on the budget for community education and engagement supporting active travel, beyond the £200,000 allocated to the school travel planning team.
  • Clarify the council's approach to supporting car users within the 2026/27 budget.