To receive apologies for absence.

Apologies had been received from Cllr David Davies.

To receive details of members nominated to attend the meeting in place of a member of the board.

There were no named substitutes.

To receive declarations of Interests from members of the board in respect of items on the agenda.

For transparency Cllr Proctor make the committee aware that he sat on the Stronger Towns Board representing the City Council and pointed out that certain capital projects were linked to Stronger Towns..

To receive the minutes of the meeting held on Tuesday 14 January 2025.

The minutes of the previous meeting were received.

Resolved: That the minutes of the meeting held on 14 January 2025 be confirmed as a correct record and be signed by the Chairperson.

To receive any written questions from members of the public.

No questions had been received from members of the public.

To receive any written questions from councillors.

No questions had been received from councillors.

For the committee to consider the council’s digital, data and technology strategy.

The Chair introduced the item, which was focused on providing an overview of the Digital Data and Technology (DDaT) Strategy that had been implemented in March 2024.

The purpose of the item was for the committee to:

• Review the work packages delivered since the strategy’s launch.
• Evaluate the impact on organisational performance and intelligence.
• Consider the strategic contributions and future deliverables.

The Cabinet Member Finance and Corporate Services pointed out that a key consideration during the development of the strategy was the inclusion of Artificial Intelligence (AI), which had experienced significant growth over the last 18 months. The strategy included AI as a placeholder, with plans to evolve its role as the capabilities and understanding of the technology evolved.

It was explained that technology was one of five enablers in the broader transformation strategy for the council. The DDaT work being carried out was not standalone and was integral to other transformation streams.

The Director of Strategy and Corporate Services emphasised the enabling nature of the DDaT Strategy, which supported the council’s ‘One Council’ way of working. The strategy was now entering a review phase, having completed its first year of implementation. The review phase was characterised by: significant experimentation with technologies like AI, testing how digital tools could enhance customer service and resident interaction, and learning from practical application to inform future improvements.

The Director of Strategy and Corporate Services highlighted the rapid pace of technological change, which was continuously introducing new tools and opportunities. It was explained that councils across the UK were at different stages of technology adoption, some were ahead, whilst other lagged behind. Herefordshire Council had taken a collaborative approach, building relationships with other local authorities to learn from their experiences.

The Cabinet Member Finance and Corporate Services reinforced the council’s position as a second-wave adopter of technologies such as generative AI. They aimed to learn from early adopters such as Derby City Council, avoid replicating mistakes made by others and integrate proven technologies into council workflows with greater insight and caution.

The Transformation Strategy was scheduled for publication at the end of the month. This would bring new models of working, which would be supported by further digital and technological implementation. The review of the DDaT strategy would align with these upcoming changes to ensure the council remained adaptable and strategically positioned.

The discussion was opened up to the committee, with the key points of debate being listed below:

1. The committee requested details regarding the council’s vision of digital, data, and technology (DDaT).

2. The Committee asked if the Customer Service Strategy would influence the DDaT Strategy.

To consider the 2024-2025 Quarter 3 (Q3) outturn and scrutinise management action to achieve planned budget outturn.

The Director of Finance presented the financial performance report for Quarter 3 of the 2024/25 financial year. The report outlined the forecast outturn position as of 31 December 2024, reflecting three quarters of financial activity.

The Director of Finance reported a projected net overspend of £7 million, with management and recovery actions forecast to reduce this to £1.1 million by the year-end (31 March 2025). It was highlighted that this outcome contrasted positively with the national trend, where 30 local authorities had applied for exceptional financial support during the same period.

It was emphasised that Herefordshire’s relatively stable position was not attributable to chance, but rather to robust and consistent financial management, both in-year and over several previous financial years. It was noted that continued vigilance and work remained necessary. Quarter 4 efforts would focus on: ongoing expenditure control measures, managing and reducing discretionary spend, focusing on the realistic delivery of savings and conducting activity data reconciliation as part of year-end close-down procedures.

The Director of Finance acknowledged that it had been a challenging year nationally for local authorities, due to rising demand, cost pressures, and increased complexity of care. In this context, Herefordshire’s delivery of ambitious savings targets further underscored the strength of financial oversight. In addition, the report highlighted significant future financial risk associated with the Dedicated Schools Grant (DSG), especially regarding councils’ responsibilities for Special Educational Needs (SEN) provision.

The capital forecast outturn as of Quarter 3 stood at £80 million, with further delivery and financial commitments continuing into 2025/26, particularly for major projects.

The Cabinet Member Finance and Corporate Services supported the report and thanked the Director of Finance and her team for the improved quality and clarity of financial reporting, which had earned national recognition with an award for financial reporting in November 2024.

The Cabinet Member Finance and Corporate Services commended Cabinet colleagues for their active engagement with monthly budget reports and for ensuring accountability within their directorates. Continued enforcement of stringent financial controls was noted, including: mandatory director sign-off for any expenditure over £500, the continuation of savings boards and oversight mechanisms introduced in the previous financial year and now extended into 2025/26.

The Cabinet Member Finance and Corporate Services concluded by attributing Herefordshire’s strong financial position to the combined effect of tight procedural controls, engaged leadership, and the dedicated efforts of the finance team.

Questions were invited following the presentation, with the key points of debate being listed below:

1. The Committee enquired why the targeted amount of £2.66 million savings relating to the Thrive programme had not been delivered.

2. The committee enquired as to whether the £2.4 million at-risk savings from mutual early resignation (MER) were being absorbed in other areas.

To review performance for Quarter 3 (Q3) 2024/25 and to report the performance position across all Directorates for this period.

The committee had agreed to include and refer to the Quarter 3 performance report as part of the preceding item on Quarter 3 financial monitoring.

To agree findings of the delivery plan working group.

[Papers to follow]

The committee was informed that the papers for this item were not available yet and the item would have to be deferred.

Resolved:

That: the item be deferred until the papers were available.

To update the committee on responses to its recommendations made in 2024.

The Statutory Scrutiny Officer introduced and provided an overview of the report. It was explained that a review of scrutiny recommendations was carried out in October 2024. The report contained responses received, so far, to recommendations made by the Scrutiny Management Board since 2023. It was pointed out that all of the recommendations made had been shared with officers on at least two occasions.

The Statutory Scrutiny Officer pointed out that the other scrutiny committees who had received the report had requested more time to consider the content and decide what to do next with the provided responses, whether that be: responding to them, seeking more information or closing them down.

The committee stated that the Executive not responding to recommendations from scrutiny committees was unacceptable. The committee noted that scrutiny was a statutory requirement when operating a cabinet-based system of governance. Regardless of the quality of recommendations or whether or not it agreed with them, the Executive should always respond to recommendations put to it.

It was proposed that an explanation be sought as to why the Executive had failed to respond to so many recommendations and that urgent action be taken to rectify the situation.

The Cabinet Member for Finance and Corporate Services agreed with the committee and said it was unacceptable that recommendations were not being responded to, as scrutiny provided the reinforcement of the democratic process. An assurance was given that the situation would be resolved.

At the conclusion of the debate, the committee discussed potential recommendations and the following resolutions were agreed:

That Herefordshire Council:

1. Ensures that the Statutory Scrutiny Officer drafts a cross-scrutiny committee protocol, to ensure timely responses with faster escalation as required to outstanding recommendations.
2. Asks the Executive to explain the failure to respond to outstanding recommendations.
3. Provides training on producing recommendations to all members of scrutiny committees.

To consider the work programme for the board.

It was explained that the work programme was still being finalised.

It was noted that a number of potential items for the work programme had been suggested during the course of the meeting and that these would be discussed, along with other potential subjects, in a work programming session ahead of the committee’s next scheduled meeting in May.

The committee agreed to consider the content of the Corporate Risk Register as a potential topic for scrutiny once the committee had been provided with a copy of it.   

Tuesday 20 May 2025, 2pm

Tuesday 20 May 2025, 2pm