The Overview and Scrutiny Committee of Hertfordshire County Council held evidence-gathering sessions on Wednesday, 4 February 2026, to scrutinise the 2026/27 budget and the Medium Term Financial Strategy. Discussions covered adult social care, public health and community safety, resources and performance, and a strategic overview of the overall budget. Key areas of concern included the financial implications of local government reorganisation, the sustainability of the capital programme amidst construction cost inflation, workforce pressures, and the adequacy of the public health grant.

Adult Social Care

The committee extensively discussed the Connect and Prevent programme, a transformation initiative aimed at improving outcomes for individuals and reducing their need for long-term care. Significant savings are projected from its expansion, with detailed explanations provided on how these savings are calculated and the investment being made in Phase 2 of the programme. This includes expanding support for unpaid carers, enabling independence, strategic commissioning, and developing sustainable accommodation. The capital programme for adult care services was also a focus, with significant investment planned for accommodation, including supported living, extra care housing, and nursing homes, as well as new and improved day centres. Workforce pressures, particularly in attracting and retaining care staff, were highlighted, with discussions on pay increases and strategies beyond remuneration, such as skills development and career progression. Concerns were also raised about ensuring private providers pass on inflation costs to care workers. The review and rationalisation of day services were discussed, with an emphasis on making the best use of assets and providing appropriate care, rather than addressing inefficiencies. The capital investment in older people's nursing homes was detailed, outlining a model for delivering new facilities and securing nursing beds at favourable rates. Finally, the Connected Outcomes programme, which extends the Connect and Prevent approach to all adult care service users, was discussed in relation to projected savings and implementation strategies.

Public Health and Community Safety

Discussions in this session centred on the effectiveness and controls surrounding a £2.9 million, three-year prevention and health inequalities fund, with assurances given regarding monthly mobilisation meetings and quarterly performance reviews. The impact of withdrawing legacy funding for housing-related support to district and borough councils was examined, with officers explaining that the funding was not being used effectively for public health grant purposes and that alternative measures were in place to support those at risk of homelessness. The modest 1.7% increase in the public health grant was a significant point of discussion, with concerns raised about its adequacy for effective service planning. Officers explained that core services would be maintained, but partnerships would be reviewed more tightly, and some resident-facing campaigns and capacity-building initiatives would be cut back, with some funding diverted from reserves. The use of public health grant reserves was clarified, noting they are primarily for emergency situations and that a prudent level of 5-6% of the grant is maintained. The impact of the low grant increase on residents was discussed, with specific mention of reduced public health campaigns and potential adjustments to health check delivery. The capital programme for the Longfield project and fire station improvements was scrutinised, with questions raised about the viability of the project and how it would be funded if estimated savings were not achieved. The project aims to generate income through driver training and apprenticeships, leveraging the fire service's established reputation. The local government reorganisation (LGR) and its impact on public health and community safety services were also discussed, with ongoing planning for various scenarios and a focus on ensuring services remain safe, legal, and functional under new structures.

Resources and Performance

This session delved into the financial sustainability of the capital programme, particularly in light of construction cost inflation, with specific reference to the Brookfield development. Concerns were raised about whether all capital programme entries were costed at current prices and the potential for projects to be at risk. The council's approach to IT and cybersecurity was examined, with an additional £150,000 investment planned to enhance measures, and assurances sought regarding the continuity of council services. The impact of local government reorganisation (LGR) on the capital programme was discussed, with a £10 million allocation for transition costs funded by capital receipts, and the acknowledgement that further work is needed to refine the total cost proposition. The increase in borrowing costs and interest, projected to reach £1.3 billion by 2030, was a significant concern, with discussions on how the council can avoid a Section 114 notice. The use of capital budgets to capitalise revenue costs was clarified as being to a very small degree, primarily for transformation projects and some staffing costs related to delivering the capital programme. Workforce challenges, including staff retention and recruitment in the context of LGR, were a key focus, with discussions on reassurance measures, savings targets, and the potential impact on service levels. The future of libraries was debated, with confirmation that all 46 libraries will remain open, though Sunday opening hours will be reduced at six branches, and the performing arts library service will be affected. Income generation for libraries was discussed, with an acknowledgement that targets may have been too ambitious and a focus on integrating services and supporting communities. Finally, the reduction in the legal team's budget and its potential impact on services and enforcement was examined, with an emphasis on attracting and retaining legal staff and potentially moving to a silver standard of service.

Strategic Overview of the Overall Budget

This session provided a strategic overview of the council's budget, aligning it with the corporate plan. Key priorities identified for investment included adult social care, children's services, and highways and transport, with significant funding allocated to each. The impact of local government reorganisation (LGR) on finances and services was a major theme, with a £10 million allocation for transition costs and ongoing modelling of potential scenarios. The council's commitment to delivering its corporate plan ambitions despite LGR was emphasised, although it was acknowledged that some projects might need to be reprioritised. The financial position of Hertfordshire County Council in the context of LGR was discussed, with assurances that the council aims to enter the new unitary structure with a balanced budget, avoiding significant inherited debts. The impact of savings programmes on residents was examined, with a focus on minimising service reductions and consulting affected individuals, particularly regarding travel budgets, day services, and library opening hours. Innovation and staff morale were highlighted as crucial for driving savings and efficiencies, with a staff innovation board and investment in AI and digital skills. The council's reserves were discussed, with concerns raised about their current low levels and the need for a robust reserves management strategy, rather than relying on them to fund day-to-day revenue spending. The council's commitment to not increasing council tax above the 4.99% referendum limit was stated, though flexibility for future unforeseen circumstances was acknowledged. The impact of the Fairer Funding Review, resulting in a £42 million annual reduction in government funding, was discussed, with the use of reserves to close immediate gaps and a focus on minimising impact on residents. The council's financial position was presented as balanced for the next four years, contingent on government funding for the high-needs block deficit. Finally, the administration's commitment to extending council tax exemptions for care leavers from 21 to 25 was confirmed, and the council's approach to managing borrowing costs and ensuring financial resilience to avoid a Section 114 notice was detailed.

The committee noted that recommendations from these evidence-gathering sessions would be formally ratified at a subsequent meeting. Key areas for potential recommendations emerging from the discussions included:

• Adult Social Care & Resources and Performance:

  • An urgent review of the capital programme's financing to ensure it is fully funded and a robust plan to mitigate risks to capital projects from construction cost inflation.
  • Clarity on the impact of staffing reductions on service levels for residents and the administration's ability to provide clarity on new service levels.
  • Strengthening contract conditions with private providers regarding staff pay and contract types, and ensuring staff morale and retention, particularly in light of LGR, and creative use of existing staff.
  • Effective monitoring of the Connect and Prevent programme to ensure projected savings do not negatively impact service delivery.
  • A clearer long-term plan for the disposal of buildings and day services, detailing the impact on residents and staff.
  • A review of the reserves management strategy, with a view to increasing reserves and establishing a resilient backstop.

• Public Health and Community Safety:

  • Mitigation of further delays to the Longfield project and other capital projects, with a focus on timelines, monitoring, and risk management.
  • Sharing the government's response regarding the public health grant with panel members and considering further representations.
  • Seeking capital contributions from other agencies for the Longfield training facility.
  • Closer monitoring of joint funding with partners to ensure effective use of funds.
  • A review into the sustainability of the high-needs block and its impact on the budget, modelling various scenarios.
  • Ensuring the council's assets are reviewed and utilised effectively.
  • Focus on staff capacity to deliver ongoing projects and LGR.

The committee will formally ratify these recommendations at a subsequent meeting.