The Council meeting on Thursday, 22 October 2026, saw a comprehensive review of the council's financial management and the work undertaken by its scrutiny committees.

Key reports presented and noted by the Council included the Treasury Management Mid-Year Review 2026-27, the Audit & Governance Committee Annual Report 2025-26, and the Scrutiny Annual Report 2025-26. These documents offer an in-depth look at the council's financial activities, governance structures, and the impact of scrutiny committee work.

Treasury Management Performance

The Treasury Management Mid-Year Review 2026-27 confirmed that all financial activities had remained within approved limits and prudential indicators. During the period from April 1, 2026, to September 30, 2026, the Council maintained an average investment balance of £38.1m, earning an average interest of 3.76%, slightly exceeding the benchmark of 3.73% for overnight SONIA. As of September 30, 2026, investments totalled £33.2m with an average interest rate of 3.85%, comprising £1.0m in a call account and £32.2m in money market funds. No single investment exceeded 365 days.

The Council's debt portfolio stood at £543.6m as of September 30, 2026, with an average interest payable of 3.93% and an average maturity of 18.6 years. This debt comprises £449.5m in Public Works Loan Board (PWLB) loans, £33.0m in market loans, £32k in Salix loans, and £61.0m in temporary loans. Notably, no long-term borrowing was undertaken during this period. All treasury management operations adhered to the limits and indicators set out in the Treasury Management Strategy Statement 2026/27, with no breaches recorded.

However, the review also highlighted potential emerging challenges. Economic headwinds, including fiscal tightening and rising utility bills, alongside potential bond market fallout from geopolitical events, were noted. Interest rate volatility, with a forecast for a potential increase in Bank Rate in November and ongoing volatility in PWLB rates, was also a concern. Furthermore, revised capital expenditure estimates showed an increase, particularly in Social Services and the Housing Revenue Account (HRA), reflecting rising costs due to inflationary pressures, material shortages, and labour issues. Capital receipts for 2026/27 were significantly reduced by 75% from £25.19m to £6.44m, impacting the financing of the capital programme. The Council also had an under-borrowing position of £155m as of 2025/26, indicating a future borrowing requirement.

Looking ahead, the Council will continue to manage its borrowing and investments in line with CIPFA's Code of Practice, prioritising security, liquidity, and yield. Opportunities for debt rescheduling will be reviewed, and Community Municipal Investments (CMI) will be incorporated into the treasury management strategy. The borrowing strategy will be regularly reviewed and revised to achieve optimum value and risk exposure, considering inflationary pressures and interest rate forecasts.

Audit and Governance Oversight

The Audit & Governance Committee's 2025-26 report detailed its oversight of risk management, financial reporting, and audit assurance. The Committee received regular updates on the Strategic Risk Register, noting the introduction of new risks and the separation of community safety and cohesion risks. They emphasised the importance of member oversight of significant risks and supported proposals to refresh the Council's risk management framework.

In terms of financial reporting, the Committee considered the Council's financial sustainability and reviewed the draft Statement of Accounts for 2024-25. The impact of delays in the national audit system was noted, with a disclaimer opinion likely for the accounts. The Committee also received updates on the 2024-25 audit plan and the challenges of rebuilding assurance, questioning auditors on the timeline for unmodified audit opinions.

Regarding Internal Audit, the Committee received a reasonable assurance opinion for 2024-25 and monitored the implementation of recommendations, with particular attention paid to contract management, school governance, cyber and information governance, and financial management. Oversight of treasury management arrangements included reviewing strategies and scrutinising borrowing and investment performance.

Scrutiny Committees' Impact

The Scrutiny Annual Report 2025-26 summarised the significant work undertaken by various scrutiny committees:

  • Budget Committee: Monitored the Council's financial position against escalating demand pressures in areas such as temporary accommodation, adult social care, and children's services. They tracked national funding reforms and examined the Council's application for £19m Exceptional Financial Support, highlighting risks related to rising temporary accommodation demand and the volatility of social care markets.
  • Children and Families Committee: Focused on improving life chances for children and families by scrutinising the SEND Improvement Plan and Strategy, reviewing the progress of Family Hubs, and examining safeguarding reports, including those on youth justice and serious youth violence.
  • Climate Committee: Reviewed updated strategies for electric vehicles (EVs) and retrofitting programmes, alongside air quality initiatives. They also scrutinised waste and cleansing performance and examined climate action across housing.
  • Communities and Public Protection Committee: Concentrated on preventing harm and improving outcomes for children and young people, with a focus on knife crime and serious youth violence. They also reviewed specialist services for violence against women and girls (VAWG) and community safety initiatives.
  • Health and Adult Social Care Committee: Scrutinised activities supporting adults to live safely and independently, including policies on minimum income guarantees and the Befriending Service. They also reviewed CQC Local Authority Assurance Outcomes for Adult Social Care.
  • Housing and Inclusive Economy Committee: Addressed housing quality, regulatory compliance, and resident experience. Key areas of scrutiny included Housing Ombudsman maladministration findings, social housing regulation updates, and the temporary accommodation strategy. They also reviewed regeneration schemes and the acquisition of new social rent homes.

Addressing Recommendations and Future Plans

The Council's process involves agreeing to recommendations made by scrutiny committees, with the aim of affecting real change and strengthening the Council's work before decisions impact residents. The Audit & Governance Committee's annual report informs the Annual Governance Statement, while the Scrutiny Committees' work is endorsed through their proposed work programmes.

Forward-looking plans for scrutiny committees include continued monitoring of financial positions, SEND strategies, climate action, community safety, adult social care, and housing quality. The Audit & Governance Committee will focus on the recovery of local audit assurance, financial sustainability, and the development of the risk management framework.

The Council endorsed the proposed work programmes for the remainder of the 2026-27 financial year and beyond, demonstrating a commitment to ongoing oversight and improvement across all areas of its operations. The full reports can be accessed via the Public reports pack for the Council meeting on 22 October 2026.