To receive any apologies for absence.

There were apologies from Cllr Swinglehurst. 

Other councillors: There were apologies from Councillors Terry James and Liz Harvey

To receive declarations of interests in respect of Table A, Table B or Other Interests from members of the committee in respect of items on the agenda.

None.

To approve and sign the minutes of the meeting held on 17 July 2025.

Resolved:       That the minutes of the meeting held on 17 July 2025 be approved as a correct record and signed by the Chairperson.

To receive questions from members of the public.

Questions received and responses given are attached as appendix 1 to the minutes. 

To receive questions from councillors.

Questions received and responses given are attached as appendix 2 to the minutes.

To receive reports from the Council’s scrutiny committees on any recommendations to the Cabinet arising from recent scrutiny committee meetings.

There are no scrutiny reports for this meeting. 

There were no reports from scrutiny committees for consideration at this meeting.

To review performance for Quarter 1 (Q1) 2025/26 and to report the performance position across all Directorates for this period.

The member for finance and corporate services introduced the report.  The Delivery Plan has been slightly revised under delegation of the Chief Executive.  The report covers quarter 1, April, May and June 2025.  It was highlighted that 199 out of 226 milestones, or 88% have either been completed or on track to be delivered at the end of this financial year. 

Successes beyond the Delivery Plan were highlighted. 

The first Council Plan theme of People noted that of 87 milestones, 55 were on track, 10 were at risk, 12 had not started and 10 were completed.  Continuing the focus on child friendly Herefordshire family conferences were now available for all families enabling earlier family-led decision making.   A new residential children’s home was opened which has increased the council’s capacity with a second home on track to open in September 2025.  It was noted that progress on a new build special free school as part of the Department of Education’s free school progress.  Regarding Adult Services, the Herefordshire Connect cross sector referral platform was ready to launch as a pilot with identified partner organisations.  Work was progressing to support people in the community following discharge from hospital, and a review process and audit tools have been developed in collaboration with health and care system partners. 

The second Council Plan theme of Place, it was noted that of 89 milestones, 64 were on target, 8 were at risk, 5 were completed and 10 had not started and 2 were paused. The Tree, Hedgerow and Woodland Strategy had been finalised. The review of the Herefordshire, Cultural Strategy 2019-2029 was progressing well and following successful consultation with stakeholders and partners a refreshed vision and set of priorities had been drafted.  An update on the progress was shared at the Connected Community Scrutiny Panel in June 2025.  As part of the Council’s commitment to reducing waste, increasing reuse and boosting recycling rates plans separate food and garden waste collection service will be introduced.  This is dependent on funding from central government which is awaited.

The third Council Plan theme of Growth, it was noted that of 39 milestones, 27 were on target, 5 were at risk, 5 had been completed and 2 had not started.  A key step had been taken to support residents in accessing skills development training and employment opportunities, a cabinet member decision has been taken to enable delivery of the 25/26 programme. Also, modelling by transport for Wales on a fast rail service between Cardiff and Manchester is awaited and in parallel the outcome of the proposed housing allocation sites for Regulation 18 consultation will help inform that appropriate business case. 

The fourth Council Plan there of Transformation, noted of the 40 milestones, 28 were on target 2 were at risk, 5 had been completed and 5 had not yet started.  It was highlighted that improvements had been made to enhance the recruitment and onboarding experience. Investment continued in the council’s property assets to reduce the long-term cost of reactive repairs.  ...  view the full minutes text for item 26.

To report the forecast position for 2025/26 at Quarter 1 (June 2025), including explanation and analysis of the drivers for the material budget variances, and to outline current and planned recovery activity to reduce the forecast overspend.

The member for finance and corporate services introduced the report. 

It was highlighted that the council was the first council to submit its audit accounts for second year running. 

The forecast 2025/26 outturn was £4.3m overspend before management action at Quarter 1. This was expected to reduce to £1m with planned management activity.  The approved net revenue budget for 2025/26 was £231.5m which included planned savings of £3.9m

Recovery actions to reduce the forecast overspend by Quarter 4 included allocation of the budget resilience reserve to mitigate the impact of cost pressures and volatility in demand led budgets, continued review of the council’s contract arrangements and shareholding in Hoople Limited and action to challenge the forecast expenditure over the remainder of the financial year. 

Regarding savings it was noted that a review of the delivery of the 2025/26 approved savings had been completed, which had been informed by planned activity in year to date to determine the savings targets at risk of in year delivery.  The review confirmed that £1.6m of the total approved savings target for the year had been delivered at Quarter 1.  A further £2.3m was assessed as on target for the year.  No savings were assessed at risk. 

It was noted that the revised savings plan had been developed and totalled £11.9m with £5.9m being delivered and £4.6m were forecast to be delivered in year.  £1.4m remained at risk with focused activity to resolve or mitigate in year.  It was emphasised that delivery of savings in full and on time was critical to ensure the 2025/26 outturn position was balanced. 

The Dedicated Schools Grant (DSG) remains as an unusable reserve on the council’s Balance Sheet as permitted by statutory instrument which remains in place until 31 March 2028.  As of 1 April 2025, the cumulative deficit was £20m and the cumulative deficit will total £40.2m by 31 March 2026. 

The 2025/26 approved capital budget of £155.3m had been revised to £175.4m. The revised capital budget included £11.7m of unspent project budgets brought forward from 2024/25, removal of a project £6m and £14.5m additional grants. The forecast spend position, at Quarter 1 was £117.9m which represented a variance of £57.5m against the capital programme budget of £175.4m.  Forecast delivery of the council’s capital programme for 2025/26 assumed a requirement to undertake external borrowing and provision was made in the approved 2025/26 revenue budget to support this borrowing.

The capital projects expected to deliver positive impact on revenue budgets were highlighted and included the Home to School / SEN Transport cost pressures (council school transport fleet £0.4m and High Needs Grant £2.1m), social care demand and cost pressures (children’s residential homes £0.4m), Temporary accommodation demand and cost pressure (acquisition fund for housing provision £5m, empty property investment and development £0.6m) and repair and maintenance budgets (estates building improvement programme and works, highways and public realm investment works). 

The key risks to the capital programme were set out. 

It was highlighted that the forecast variance of £4.3m at Quarter  ...  view the full minutes text for item 27.

To provide an update on the key headlines from the Spending Review June 2025 and potential impact of local authority funding reform on the council’s future financial position.

ChildrenCHTHE MEMBER the The member for finance and corporate services introduced the report.  The report  provided an update on the changes to the financial and economic context including key headlines from the spending review of June 2025, potential impacts of local authority funding reform and to set out the timetable and approach for the development of the 26/27 budget and MTFS for 26/27 to 29/30. 

The key priorities in 25/26 were set out as delivery of services within the approved revenue budget, robust monitoring of in-year performance against the approved revenue budget, delivery of savings of £3.9m in 25/26 revenue budget and £11.9m of savings delivered recurrently in prior years, and development of the 25/26 revenue and capital investment budgets. 

It was noted that the updated estimate of funding represented a potential loss to the 25/26 baseline position of £12m over a three-year period. The impact of reduction in funding through the fair funding review resulted in a revised estimated funding gap of £27.3m in 26/27 which would rise to £54.4m in 28/29.   

The spending review 2025, was the first multiyear spending review since 2021.  The key announcements included local government funding, settlement indication, transformation fund allocations for local government, adult social care, children’s social care, pothole funding, council tax reform, education, dedicated schools grant, special educational needs and disabilities deficits. 

The last full assessment of relative needs and resources was 12 years ago and the relationship between the assessment and actual allocation through the Settlement Funding Assessment (SFA) had weakened.  It was noted that the government were considering further grants including nearly £10b of social care funding to be included in the SFA, subjecting those grants to the Fair Funding Review 2 (FFR2) process.  Meaning the FFR2 would have a significant impact on local authority funding, making it difficult to predict.  The full outcome of the consultation and impact of funding for Herefordshire would not be confirmed until the provisional settlement announcement in late December 2025.   

It was noted that the allocation of the new SFA was made up of an assessment of relative need and assessment of the relative resource, and these were the two key determinants of the FFR2 outcome for each authority. 

In 25/26 the council received £79m (base line for FFR) and this excluded council tax.  The estimated loss for Herefordshire would be £12m compared with the base line for this year over the three year period to 28/29. 

It was noted that reviewing the expenditure requirement in the context of the new SFA highlighted an increased potential funding gap over the medium-term period of £27.3m in 26/27, £40.6m in 27/28 and £54.4m in 28/29.  The estimated revised potential gap was the result of growth in demand and cost for services increasing at a higher rate than the increase in council tax and central government funding.

Herefordshire council’s share of the fixed national pot of funding was determined by Herefordshire’s share of relative need.  The review of Herefordshire’s share of relative needs assessment in 2025  ...  view the full minutes text for item 28.

To provide an update on the status of corporate risks at the end of Quarter 1 2025/26 (June 2025) and provide assurance that risks are being managed effectively across the council.

ChildrenCHTHE MEMBER the The member for finance and corporate services introduced the report. 

It was noted that the revised corporate risk register approved by cabinet in June 2025 included 8 corporate risks and at Quarter 1 a further risk was added to the risk register, R9 which recognised the risk of financial failure of a major supplier to the council resulting in disruption to statutory services or major projects.  It was confirmed there were no changes to the risk scores for the remaining 8 corporate risks during Quarter 1.

It was confirmed that the council’s 25/26 internal audit plan was reviewed to ensure it aligned with the refreshed risk strategy and the risks identified in the corporate risk register. It was also confirmed that work continued to ensure the strategy was translated to the management of risk across services and projects and that it drove decision making and service delivery. 

It was highlighted that further activity was planned in Quarter 2 to further embed and strengthen risk management, and these were set out.   

It was confirmed that risk management was a key part of the council's governance arrangements and the risk management strategy supported compliance with statutory requirements of the Accounts and Audit Regulations 2015.

Appendix A set out the corporate risk register, and the risks were clearly linked to the Council Plan, providing a golden thread linking it all together. 

There were no comments from cabinet members. 

Group leaders gave the views of their groups.  It was noted as reassuring that risks were being reviewed on a quarterly basis and the Quarter 2 report was awaited along with confirmation that the planned activities had been completed.   

There were no responses to group leaders.

Councillor Stoddart proposed the recommendations, and it was unanimously resolved that:

That Cabinet:

(a)   Approves the updates to the Corporate Risk Register and actions to mitigate identified risks at Quarter 1 2025/26.

(b)   Notes the activity to embed the revised risk management strategy to strengthen risk management activity across the council at Corporate, Directorate and Service levels.

To approve a Suicide Prevention Strategy for Herefordshire 2025 - 2029. The strategy has been developed in collaboration with local partners and highlights our commitment to reduce the number of local lives lost to suicide. The strategy takes a whole-county, all-age approach. It is intended that partner organisations will each take forward actions and work collaboratively to reduce the number of suicides in Herefordshire.

ChildrenCHTHE MEMBER the The member for adults, health and wellbeing introduced the report.  It highlighted that the strategy intends to interrupt someone’s suicidal thoughts to try and save a life. It was noted that 34 organisations had been consulted, 64 members of the public responded to an online survey, 7 people with lived experience were interviewed and the council engaged with the youth board.  It was queried at the PGC if the average age for people who took their own life was accurate at between ages 45-64 and it was confirmed that more recent figures showed that the average age was between 25-44.  The reason for the difference was because of the small numbers, meaning they fluctuated each quarter. 

Noted the Baton of Hope event was taking place next week, Hereford was honoured to have the chance, and was the only county in the West Midlands. 

Comments from cabinet members.  Full support was given, and it was highlighted there was also support for veterans, which alongside the strategy encouraged them to reach out for support. It was noted that it was always a brave thing to ask for help and it can happen for a range of reasons, the strategy should be promoted so people were aware of where they can go for support and address their concerns.

Group leaders gave the views of their groups.  There was support for the strategy and group leaders confirmed they would be promoting it.  Caution was expressed regarding the language used and the wording around how life was worth living even on days when a person was not feeling hopeful.  It was raised that whilst the strategy focused on one point in a person’s life there were other contextual points and the council should be mindful of this, particularly considering the reports regarding the budget. 

In response to group leaders, it was highlighted that the council always strived for the health and wellbeing of its residents, and it was crucial Herefordshire council had strategies like this in place.

Councillor Gandy proposed the recommendations, and it was unanimously resolved that:

That:

a)    The Herefordshire Suicide Prevention Strategy 2025-2029 at appendix 1 be approved

To receive the report on the outcome of the Local Government Association Corporate Peer Challenge, held 23 - 26 June 2025, and to approve the council’s action plan in response to the recommendations for publication.

ChildrenCHTHE MEMBER the The member for finance and corporate services introduced the report.  It was highlighted that the peer team involved senior local government councillors and officers who reviewed key finance, performance and governance information.   The peer team considered five core components: local priorities and outcomes, organisation and place leadership, governance and culture, financial planning and management and capacity for improvement.  In addition, the peer team considered the council’s approach to risk, use of data and insight and transformation. 

It was highlighted that the Corporate Peer Challenge report contained the overall message (Appendix 1) that:

“Herefordshire was a good council, it was striving hard to improve further and it benefited from a strong sense of place, a maturing political culture and a growing confidence in its leadership.  The council has developed a respected identity among partners and is seen as a constructive and increasingly strategic player in the region. There is a clear recognition of the challenges ahead, particularly in relation to transformation, capacity, and financial sustainability, and the council is approaching these with determination and a willingness to learn. The peer team found a council that is self-aware, committed to improvement, and increasingly outward facing. There is a shared understanding of the importance of transformation, and while the journey is still at an early stage, the council is laying the groundwork for long-term change. The latest Ofsted monitoring visit confirms that children’s services are improving at pace, and performance in most other service areas is broadly in line with statistical neighbours. The council’s finances are currently in a good base position. There is a need to refresh the medium-term financial strategy (MTFS) and undertake more robust scenario planning to prepare for future uncertainties.”

The Corporate Peer Challenge report noted that Herefordshire was a rural county with demographic challenges such as an aging population, the council’s leadership (politically and managerially) was increasingly confident and respected, there was a level of political maturity and members working constructively across party lines and a strong emphasis on consensus building.  Partnership working was noted as a strength and the phosphate credit scheme was cited as an example of innovative, place-based leadership.  Also, partnerships with the voluntary and community sector were positive.  It was noted that governance was generally strong with clear structures and ongoing improvements in risk management.  It was also noted that audit and scrutiny had been strengthened.

However, it was raised that whilst performance management was embedded across the council, there was a need for better data integration and corporate-level insights to drive transformation.

It was highlighted that the council’s financial position was stable with a positive outturn in 2024-2025 and with a healthy level of reserves. There was recognition that future years’ financial settlements may be challenging, and the council was reviewing the Medium-Term Financial Strategy alongside scenario planning to test different assumptions. The team noted an ambitious capital programme with the need to keep management and capacity to deliver the programme under review. 

Lastly, it was noted that the council  ...  view the full minutes text for item 31.

To outline the opportunities and risks to the council in proceeding to form a partnership with other local authorities in the West Midlands to create a Special Purpose Vehicle (SPV) for the West Midlands Safe Centre to own and manage the secure welfare provision on behalf of the 14 local authorities/Trusts.

For this item on the agenda, the Chair proposed a vote that the meeting moved into a private session. This being due to the report containing information relating to the financial or business affairs of the council pursuant to paragraph 3 and the information being in respect of a claim to which legal professional privilege could be maintained in legal proceedings, pursuant to paragraph 5 of Schedule 12A of the Local Government Act 1972.

It was resolved that:

That under section 100(A)(4) of the Local Government Act 1972, the public be excluded from the meeting for the following item of business on the grounds that it involves the likely disclosure of exempt information as defined in Schedule 12(A) of the Act -

(3) The item discloses information which relates to the financial or business affairs of the council and, (5) The information is in respect of a claim to which legal professional privilege could be maintained in legal proceedings

And it is considered that the public interest in maintaining the exemption outweighs the public interest in disclosing the information.