Agenda item

To consider implications of an alternative Overview and Scrutiny (OS) committee structure that includes a dedicated Finance Select Committee.

The Chairman noted that attached to the agenda was a report that presented for discussion a range of options for the council’s future Overview and Scrutiny (OS) committee structure. The options presented in the report related to how scrutiny of council finance and other corporate resource matters would be undertaken.

The Chairman invited the Committee to consider these options outlined, and that if there was a consensus that some form of change would be beneficial, then it would be recommended that this be considered further by Overview and Scrutiny under the next council.

It was outlined that the best way to undertake scrutiny of financial and other corporate matters had been being discussed offline for some time and that the Committee had reviewed its approach to it in 2022 by resolving to undertake public scrutiny of key financial reports to supplement the scrutiny done by the Financial Planning Task Group. It was also previously resolved that this committee would undertake more scrutiny of other corporate matters, which has been done, taking reports on issues like complaints, transformation, corporate health and safety and the Community Safety Partnership.

The Chairman outlined that last year, he met with the Vice-chair of Overview and Scrutiny and Vice-chair of the Financial Planning Task Group, the Chairs and Vice-chairs of the other select committees, and the Chief Executive and other senior officers. During these discussions, officers had expressed their view that a change to the committee structure could enhance the depth of scrutiny undertaken on finance and other corporate matters. In light of this, the report attached to the agenda had been produced to be considered as part of the Committee’s legacy process, with any recommendations for change being passed to Overview and Scrutiny under the next Council for further exploration.

Henry Powell, Democracy and Complaints Manager, provided a summary of the report:

·       An overview of the scrutiny arrangements of councils nationally was provided, with it noted that there was generally three main structures in place.

·       An overview of the three structures included within the report was provided:

o   Option A retaining the current structure.

o   Option B adding a new Finance and Procurement Select Committee to the existing structure.

o   Option C adding a new Finance and Procurement Select Committee with an OS Liaison Board replacing the Overview and Scrutiny Management Committee to be attended by the Chairs and Vice-Chairs of Select Committees.

Cllr Richard Clewer, Leader of the Council and Lucy Townsend (Chief Executive) provided their respective opinions on the proposals with it suggested that there was a support for scrutiny and that the decision made should add value and weight. Lizzie Watkin, Section 151 Officer, stated that the proposals supported the agenda of transparency however there would need to be mindfulness of making sure debates took place in the right places as well as that the budget process would need to be driven forward alongside a potential new Finance Select Committee. Perry Holmes, Monitoring Officer, made a point regarding incremental change and how Option B would potentially cause the least disruption to whilst keeping an oversight on finances.

The Chairman invited Cllr Pip Ridout (Chairman) and Cllr Gavin Grant (Vice-Chairman) of the Financial Planning Task Group to discuss the proposals, with it suggested that there was support for the forming of a new Committee though there would need refinement and definitions of risks and performance in place. The need to potentially discuss financial contracts and procurement in Part 2 conditions was referenced, with the need for the Council to have oversight of ICB contracts also reiterated. The need for a joined-up approach to the budget was also stressed with it acknowledged that any meetings of a potential Finance Committee would have to be tailored in with the production of finance reports ahead of approval at Cabinet meetings. The importance of and the need to scrutinise treasury management was stressed as such an area had the ability to damage local authorities should mistakes be made. The notion of Option B providing a gradual approach was referenced.

The Chairman thanked Cllrs Ridout and Grant for their work and efforts placed into the Financial Planning Task Group whilst also acknowledging the importance of such work.

The Committee discussed the report with clarity regarding the potential cost implications of the proposals sought, to which it was noted that this had been discussed with the Chief Executive with it agreed that any financial costs would not outweigh the benefits of positive scrutiny. It was also noted that the Scrutiny and Democratic Services teams were flexible and that there was confidence that support could be provided by officers to any of the proposed models. It was also suggested that a specialised Finance Committee would enable the Overview and Scrutiny Management Committee to undertake wider scrutiny. Furthermore, it was acknowledged that officers already provided support for the Financial Planning Task Group.

A point was made with it suggested that Option C made greater sense with it suggested that the Overview and Scrutiny Management Committee had a limited workload and that it could be argued that some of the functions of the Committee listed within the report were not regularly undertaken. It was suggested that should call ins occur, these could be distributed to the relevant Select Committee within Option C with specialist scrutiny to take place. It was further stated that by changing to Option C, the Liaison Board element would allow for proper management of the four Select Committees and that this option had previously worked well when it had been used by Wiltshire Council in previous years.

A discussion took place regarding the potential overcrowding of workloads, with it suggested that if a new Committee was to be formed, it should not be overloaded. The benefits of a gradual approach to change through Option B were further reiterated, with it suggested that the change could be examined in due course once enacted to see if effective work was taking place and then if not, action could be taken to review the functions in place. A point was also made in relation to Option C that with the Chairmen and Vice-Chairmen of Select Committees attending the Liaison Board, they would effectively be scrutinising their own work which had taken place. It was also suggested that Option B could be beneficial in the way that the Management Committee could have a role in investigating work from a strategic perspective should there be areas overlapping multiple Select Committees. The Overview and Scrutiny Management Committee was also cited as a means for Members to understand the work taking place in Select Committees, which could potentially be limited by silo working with the Liaison Board proposed in Option C.

Perry Holmes, Monitoring Officer, provided guidance on the decision being made by the Committee, with it suggested that the decision could be placed as an item to be considered at the first meeting of the new Council in May, however this decision could be interpreted to be binding what was to take place under the new Council.

At the conclusion of discussion, it was,

Resolved:

The Overview and Scrutiny Management Committee agreed:

1. After the local elections on 1 May 2025, at its first meeting, Full Council implements Option B, taking into account this Committee’s comments about implementing the new model successfully, including setting a period for review; and

2. To recommend that after the local elections on 1 May 2025, Overview and Scrutiny considers if it requires more detailed financial information in order to conduct ongoing scrutiny and monitoring of the council’s annual Finance Plan and its implications.