The Resources and Delivering Value Scrutiny Board met on 1 September 2025 to discuss the council's financial strategy, transformation programme, and work programme. The board reviewed the forecast revenue and capital position as of 31 July 2025, and noted that further action may be required to address budget variances. The board also received an update on the Corporate Transformation Programme, which aims to deliver savings through various workstreams.

Medium Term Financial Strategy Update

The board reviewed the 2025/26 Medium Term Financial Strategy (MTFS) Update as of 31 July 2025. The report outlined the forecast revenue and capital position for the 2025/26 financial year for core council revenue, the Housing Revenue Account (HRA), capital outturn, and the Dedicated Schools Grant (DSG).

The Period 4 forecast showed an adverse variance against core council budgets totalling £2.713 million, mainly in relation to the Children's Services directorate. There was also an in-year adverse variance of £10.983 million for the Dedicated Schools Grant (DSG).

The report also noted a significant reduction in available reserves since April 2023, making it increasingly difficult to use one-off reserve usage to balance in-year positions.

The report set out the MTFS process and timeline, highlighting the expectation that significant savings would need to be identified for 2026/27. Forecast overspends, particularly in children's placements, presented a risk to the MTFS for 2026/27 onwards. Council tax income forecasts were also negatively affected by an increase in the cost of council tax support.

Uncertainty relating to business rates forecasts was compounded by the reset due to take effect from April 2026. Initial modelling suggested that the net impact for Solihull was likely to be a reduction in funding compared to current assumptions.

The report warned that a significant funding shortfall across the new MTFS period of 2026/27 to 2028/29 was likely, and that difficult decisions would need to be made on where savings could be made. In the event that insufficient savings could be identified, the Section 151 officer¹ would have to consider issuing a Section 114 notice².

Corporate Transformation Programme

The board received an update on the Corporate Transformation Programme since 20 May 2025. The programme is largely on track and is expected to deliver the savings predicted, although there are some potential delays due to asset sales and slippage in the SCH Savings and Customer Services Programmes. Overall, the programme has already delivered £3.4 million of ongoing savings in the first five months of delivery and is forecast to deliver a further £6.220 million of one-off and ongoing savings for the remainder of the 2025/26 financial year.

The Corporate Transformation Programme has been established around seven major workstreams:

• Asset Master Planning, focusing on rationalising, commercialising, and disposing of land and property assets.
• Communities and Customer Services, delivering more efficient and accessible services through digital, automation, and artificial intelligence solutions.
• Growth and Public Sector Reform, maximising external funding to support prevention and early intervention.
• Workforce Efficiency & Redesign, delivering financial savings and ensuring productivity and efficiency.
• Living Well in Solihull, ensuring investment in prevention is effectively targeted and that evidence and data is used to determine investment and disinvestment decisions.
• Financial Sustainability, focusing on the Medium-Term Financial Strategy refresh and budget process.
• Digital and ICT, ensuring that limited resources are prioritised and targeted at the most appropriate options.

The seven priority projects were established under the Financial Sustainability Board and have now been migrated into the Corporate Transformation Programme:

• Schools Transport Review
• Homelessness Review
• SCH Collaboration or Shared Services
• Transitions/Preparing for Adulthood
• Commissioning and Procurement Board
• Waste/Environmental Services
• Sustainable Income Base

Resources and Delivering Value Scrutiny Board Work Programme 2025/26

The board reviewed the status of the Resources and Delivering Value Scrutiny Board Work Programme 2025/26. The work programme is used to schedule and prioritise matters for scrutiny identified by members of the board.