Agenda and minutes

To note any apologies for absence from Members.

Apologies for absence were received from Councillors M Beanland and G Hayes.  Councillor S Gardiner was present as substitute for Councillor G Hayes.

To provide an opportunity for Members and Officers to declare any disclosable pecuniary interests, other registerable interests, and non-registerable interests in any item on the agenda.

There were no declarations of interest.

To provide an opportunity for Members to declare the existence of a party whip in relation to any item on the agenda.

As per paragraph 4.35 of the Council’s Constitution (Overview and Scrutiny Committee Procedure Rules - The Party Whip), it is generally accepted that the Party Whip should be suspended in respect of scrutiny matters.  However, when considering any matter in respect of which a member of an Overview and scrutiny committee is subject to a formal party whip, the member must declare the existence of the whip, and the nature of it, before the commencement of the committee’s deliberations on the matter.  The declaration, and the detail of the whipping arrangements, shall be recorded in the Minutes of the meeting.

There were no declarations of party whip.

A total period of 15 minutes is allocated for members of the public to make a statement(s) on any matter that falls within the remit of the Committee.

Individual members of the public may speak for up to 2 minutes, but the Chair will decide how the period of time allocated for public speaking will be apportioned, where there are a number of speakers.

Note: In order for officers to undertake any background research, it would be helpful if members of the public contacted the Scrutiny officer listed at the foot of the agenda, at least one working day before the meeting, to provide brief details of the matter to be covered.

There were no registered public speakers.

To consider a report that sets out the Committee’s Terms of Reference for formal noting and consideration as the basis for the Committee’s future work.

The Committee considered a report which set out its Terms of Reference, for formal noting and consideration as the basis for the committee’s future work.

It was explained that this was a standard report presented to the first meeting of a new committee and set out the governance framework approved by Full Council under the Leader and Cabinet arrangements.  The role of Overview and Scrutiny was fundamental to this process.

Members queried the emboldened formatting of ‘Corporate Leadership Team’ on page 8 of the report; the appointment process for the four statutory co-opted members for education matters; the arrangements for tracking and reporting Committee recommendations; and whether the Committee’s role had changed under the new Overview and Scrutiny arrangements. In response, officers advised that the formatting was likely a constitutional convention and would be investigated; work was ongoing with Children’s Services and partner organisations to identify and appoint suitable statutory co-opted members, with the appointment process and the scope for Member input to be reviewed against legislative requirements; scrutiny recommendations would be monitored with relevant Portfolio Holders and feedback provided through future meetings or other appropriate channels; and the role of Overview and Scrutiny remained broadly unchanged from the arrangements that existed before the Committee System was adopted in 2021, with the use of ‘will’ and ‘may’ in the Terms of Reference reflecting mandatory and discretionary functions respectively. Officers added that the constitutional arrangements would continue to be kept under review and any amendments could be considered through the appropriate review process.

RESOLVED:

That the Committee’s Terms of Reference and the governance and procedural framework for its operation be noted.

To receive a Q4 / End-of-Year Finance Update 2025/26.

The Committee considered a report which detailed the fourth quarter of the 2025/26 in year revenue and capital position; savings delivery; forecast pressures; and mitigating actions / end of year outturn, which had been presented to Cabinet on 2 July 2026.

The Committee noted the Council’s overall year-end overspend of £18,510m, which represented a £3.805 million improvement on the FR4 forecast and reduced the level of Exceptional Financial Support required. Within Children’s Services, the adverse variance reduced to £5.010 million due to improvements across placements, staffing and transport budgets, although placement costs remained the most significant pressure. Members also noted the growing DSG deficit, which reached £156.596 million at year end, and received an update on maintained school balances, with 23 schools remaining in deficit despite an overall surplus position across maintained schools. Ongoing support for schools through the Department for Education’s School Resource Management Adviser programme was highlighted.

Members raised concerns regarding Children’s Services financial pressures; workforce recruitment and retention; the Reconnect programme; rising Education, Health and Care Plan (EHCP) demand and SEND-related budget pressures; school transport; out-of-area placements; DSG funding risks; supported accommodation provision; maintained school deficits; Webb House; and progress against several red-rated improvement programmes. In response, officers outlined actions being taken to strengthen workforce stability; increase local placement capacity; support schools in financial difficulty; progress the Reconnect and supported accommodation programmes; and manage SEND demand and DSG pressures. Officers also confirmed that a small number of children were placed in unregulated homes under strict oversight; advised that written updates would be provided on several matters, including EHCP forecasts, local placement figures and DSG assumptions; and acknowledged that while transformation programmes and national reforms offered opportunities to improve outcomes and reduce future costs, significant work remained to achieve a stable workforce and sustainable financial position.

RESOLVED:

That the content of the Outturn report for 2025/26 be noted.

To update the Committee on progress against the Children’s Services Improvement Plan and findings from the fourth Ofsted monitoring visit.

The Committee considered a report which updated on progress against the Children’s Improvement Plan.  The report included the findings from Cheshire East’s fourth Ofsted monitoring visit in April 2026, which focused on the Council’s care experienced young people and its services to them.

The Committee received the Annual Improvement Report, which highlighted continued progress across Children’s Services, including delivery of the Improvement Plan; implementation of restorative practice; strengthened participation arrangements; service redesign; improvements for care-experienced young people; and positive findings from Ofsted’s fourth monitoring visit. Members noted that, despite significant progress and external recognition of improvement, challenges remained around workforce stability; consistency of practice; management oversight; financial pressures; placement costs; and growing SEND demand. A new Improvement Plan from 2026 onwards had been developed to align with national reforms; the Children’s Social Care Framework and the Council’s transformation programme.

Members discussed the role of Overview and Scrutiny in supporting improvement; key Ofsted findings; communication with care leavers; workforce development; practice standards; housing provision for care-experienced young people; progress on the National House Project; and workforce recruitment. Officers welcomed continued scrutiny and challenge, advising that detailed reviews and performance deep-dives would support the improvement journey. They reported positive feedback from care leavers; strengthened workforce development arrangements; and ongoing investment in recruitment and learning programmes, while acknowledging that workforce stability remained the single biggest challenge to achieving consistent and sustainable improvement. Officers confirmed there was no evidence that care-experienced young people were being prioritised over other housing applicants; advised that progress on the National House Project had been delayed by job evaluation processes; and explained that issues affecting the fast-track recruitment pathway remained subject to wider corporate HR and IT system constraints.

RESOLVED:

That the Children’s Overview and Scrutiny Committee

1.    Note the new Improvement Plan.

2.    Note the progress against the Improvement Plan.

3.    Note the findings of the fourth Ofsted monitoring visit on care leavers.

To consider the Cabinet Forward Plan and identify any likely pre-decision scrutiny items.

The Committee considered the Cabinet Forward Plan to identify any likely pre-decision scrutiny items.

Members were advised that there was one item currently listed on the Forward Plan that was relevant to the Committee: the Youth Justice Plan 2026-27, a report on which was due to be presented to the Committee at its meeting on 2 November 2026.

RESOLVED:

That the Cabinet Forward Plan be received and noted.

To agree the Committee’s 2026/27 work programme.

</AI9>The Committee considered the Work Programme.

Members requested that future Work Programme items include consideration of the Dedicated Schools Grant (DSG) within the planned finance update; a report on the Council’s staffing and recruitment strategy including retention and exit interview information; an update on suitable homes and supported accommodation for young people through the scheduled Improvement Plan Update; and a separate report on the financial position of schools.

In response, officers confirmed that the finance update would include the DSG; agreed to add the staffing and recruitment update to the Work Programme; advised that accommodation updates could be incorporated within the Improvement Plan Update; and agreed that a standalone report on school finances should be scheduled for the Committee’s 14 December 2026 meeting when further information would be available.

RESOLVED:

That the Work Programme be agreed, subject to the inclusion of the additional items discussed.