Agenda item

Report of the Scrutiny Manager enabling the Overview and Scrutiny Management Committee to examine the content of the Forward Plan and to discuss issues of interest or concern with the Executive.

Forward Plan – Transformation Update.

Councillor Letts – Deputy Leader and Cabinet Member for Finance & Corporate Services, Mel Creighton – Executive Director for Enabling Services, James Wills-Fleming – Transformation Director and several members of the Executive Management Team were in attendance and with the consent of the Chair addressed the meeting.

Councillor Letts set out the progress made to date in relation to the transformation programme, including savings exceeding £9m to date, and the impact these changes have had in relation to the current and projected budget. Councillor Letts then outlined the Council’s expectation with regards to future reductions and efficiencies.

The Committee noted the update and raised several questions regarding specific transformation programmes and potential challenges for the Council, including:

• Performance and Risk

The Committee sought to understand how risks were being managed and mitigated in relation to the changes and realignment of services through the transformation programme. Councillor Letts set out how risks were being monitored and managed including through the improved use of technology and data to protect and enhance provision to vulnerable service users. Councillor Letts also set out the Red, Amber, Green (RAG) assessment criteria applied to the transformation programme detailing achievements to date, those projected to be achieved and those areas that require further confidence to progress.

Cllr Letts highlighted the period when Newton (Europe) consultancy support reduces, and responsibility to continue to maintain momentum transfers to City Council services, as being a time when risks are likely to be heightened.

• Expenditure

The Committee were keen to understand the current and future levels of expenditure required to deliver the Council’s transformation programme. Councillor Letts set out the current level of costs in relation to consultancy provision, the Council’s in-house transformation teams as well as the savings being achieved, and the approach being taken.

• Phase Two

Councillor Letts set out the plans under phase two of the transformation programme relating to growth, reducing demand, and embedding cultural and behavioural changes. In addition, the Committee discussed with the Cabinet Member the potential impact of the Local Government Reorganisation both in terms of the identified opportunities and risks.

The Cabinet Member indicated that the Council were actively considering adopting the Marmot Principles to help address the inequalities prevalent in Southampton and reduce demand for services.

Forward Plan – Housing Revenue Account (HRA) Budget & Capital Programme.

Councillor Letts – Deputy Leader and Cabinet Member for Finance & Corporate Services, Councillor A Frampton – Cabinet Member for Housing Operations, Mel Creighton – Executive Director for Enabling Services and S151 Officer and Debbie Ward – Executive Director, Resident Services were in attendance and with the consent of the Chair addressed the meeting.

Councillor A Frampton introduced the report setting out the current position and the plans to improve outcomes for Council tenants, as part of the wider transformation agenda being delivered via the Housing Improvement Plan and the Good Landlord Transformation Programme. Reducing voids, rent arrears and increasing the percentage of properties classified as Decent Homes were identified as priorities for the service.

The Council is in the process of reviewing the HRA Business Plan to ascertain the budget envelope that can be invested in the housing stock over the 40-year period of the plan.

Whilst recognising the work being undertaken to review the HRA Business Plan, and the increased expenditure identified for 2025/26 to improve the housing stock, the Committee raised concerns about the capital allocation outlined for 2026/27 and beyond and the inability of the Council to spend the resources allocated within the timescales agreed.

Forward Plan - The 2025/26 Budget and Medium-Term Financial Strategy.

Councillor Letts – Deputy Leader and Cabinet Member for Finance and Corporate Services, Mel Creighton – Executive Director for Enabling Services and S151 Officer, and Richard Williams – Director of Finance were in attendance and with the consent of the Chair addressed the meeting.

Councillor Letts introduced the report and provided an overview of the draft budget which is balanced for the period of the Medium-Term Financial Strategy. Councillor Letts explained that this had been achieved through a combination of transformation savings, effective budgetary controls, and additional funding from Government. It was emphasised that the delivery of the remaining transformation savings would be challenging and 2025/26 would be a pivotal year for the Council’s financial position.

The Committee were informed that the requested extension to Exceptional Financial Support had been agreed and that the Executive hoped this would support the conclusion of the equal pay claim in 2025/26.

The Committee noted the report and sought clarification and assurances on specific matters including the Dedicated Schools Grant (DSG), support for the Voluntary and Community Sector, the Procurement Forward Plan and the potential impact on the proposals associated with Local Government Reorganisation.

Forward Plan – General Fund Capital Programme.

Councillor Letts – Deputy Leader and Cabinet Member for Finance & Corporate Services, Mel Creighton – Executive Director for Enabling Services & S151 Officer, and Richard Williams – Director of Finance were in attendance and with the consent of the Chair addressed the meeting.

Councillor Letts introduced the report and set out the proposals for the General Fund Capital Programme. The Council’s failure to deliver capital projects on time and in budget was raised by the Committee. The concerns were shared by Cabinet and the establishment of a Capital Delivery Group, to support Capital Board, was referenced by the Cabinet Member as part of the improvements planned to address this issue.

The Committee raised questions relating to the Asset Development and Disposal Programme.  The Cabinet Member explained that the programme was gathering pace and that the £16m target for capital receipts in 2024/25 was likely to be met.

The Committee also raised concerns about, and sought updates on, the increasing costs of the Outdoor Sports Centre project and St Marys Leisure Centre, and the level of capital investment allocated to the highways network. Cllr Lett’s identified that investment in highways was a priority of the Administration and would be increased when other pressures have been reduced.