The Havering Council's Overview and Scrutiny Board met to discuss budget savings, HR metrics, the improvement and transformation action plan, and cabinet responses to scrutiny recommendations. Councillors reviewed progress on savings targets, scrutinised workforce data, and discussed the future of the Havering Volunteer Centre. The board also considered how to improve the scrutiny process itself.

Budget Savings Update

The board reviewed a report on the progress of achieving savings agreed in the 2025/26 budget. The council needs to make £10.254 million in savings. Cathy Creeman, the council section 151 officer, said that while amber-rated savings were still potentially achievable, red-rated savings were proving difficult, and would be incorporated into budget planning for the next financial year.

Councillor Wilkes asked whether amber and red classifications would be achieved by the end of the year, or if they would come out of next year's budget. Cathy Creeman said that any savings rated as red were being incorporated into the budget planning process for next year.

Councillor Stanton raised concerns about library savings, noting that business rates were now payable on a site without meanwhile use¹. Cathy Creeman confirmed that the business rate element of the library saving was about £22,000, and that the majority of the saving related to staffing. She also noted that the library service was struggling to achieve its income budget, which related to the use of photocopiers.

Councillor Good asked about the percentage of amber savings that had moved to red. Cathy Creeman said she was unable to respond at the time, as a live update was being prepared for the period six budget monitoring report to be presented to cabinet in November.

Neil Stubbings said that the council was working with Chalk Hill on housing demand, and that while the programme had been ambitious, they were now acquiring properties. He added that there were 10 currently occupied, and 15 in the pipeline. He also mentioned efforts to bring forward affordable housing on Chippenham Road, and schemes for blocks nine and 10 on Waterloo Estate.

Councillor Taylor asked if savings were being delivered elsewhere if the modular programme was not delivering savings. Kirstie Smith said that it was difficult to assign where to count the saving, and that a more scientific approach was needed.

Councillor Keane asked about the flexible use of capital receipts². Cathy Creeman said that the council already had an existing capital receipts target of £40 million over two years, and that it was struggling to deliver against a very ambitious disposals target already. She added that putting forward a strategy to use capital receipts towards transformation would be futile.

Councillor Ruck asked if the report was shared with the government department, and what the impact was on them. Cathy Creeman said that the council had met with the department and updated them on savings, and that they understood it was getting increasingly difficult to deliver savings.

Councillor Taylor suggested that future reports include actuals of where the council is year-to-date in the budget itself.

Councillor Good asked about capital receipts, and whether the council had already increased its loans in order to fulfil its capital programme where it could have been using the capital receipts. Cathy Creeman said that the council had used capital receipts to finance the capitalisation direction taken out in respect of 2023/24, but that it had not physically borrowed to finance the 24/25 capitalisation direction.

Corporate HR Metrics

The board then discussed corporate HR metrics, including agency workers and sickness absence. Joanne Budden introduced the sickness absence report, noting that the number of sickness episodes had remained steady, but the total number of sick days taken had gradually declined. Euan Beales introduced the agency workers report, noting that spending on agency workers and the number of agency workers had decreased.

Councillor Godwin asked if there was any correlation between the reduction in agency staff and the rise in mental health issues. Euan Beales said that there was no statistical evidence to support this, and that there should realistically be no impact.

Councillor Stanton asked about musculoskeletal absence reasons, and how happy the council was with the training people were receiving. Joanne Budden said that health and safety would have more data on this, and that mandatory training courses were in place.

Councillor Keane noted that performance figures were low compared to the target, and asked what more could be done to support managers doing appraisals.

Councillor Taylor asked if the data allowed the council to be clear on whether work from home was having an impact or not. He also asked what support was offered to staff for managing out-of-work stress.

Councillor Taylor asked what the general impression was of people resigning, and whether they were unhappy and leaving, or going somewhere else and building good careers.

Councillor Taylor asked for the figures for all 399 engagement reasons for agency staff.

Councillor Keane asked what kind of jobs were coming in over £75k that should be agency, and if it was possible to get some detail about that.

Councillor Keane noted that the people department had the highest percentage of long-term sickness versus the others, and asked what work was going on to ensure that performance development reviews (PDRs) would be completed at 100%.

Councillor Ruck asked for assurance that all people were undertaking their training, and if the council could provide some feedback on that.

Improvement and Transformation Action Plan

The board then moved on to discuss the improvement and transformation action plan. Cathy Creeman gave a brief overview of the report, noting that the council was in receipt of a capitalisation direction due to its inability to balance the budget.

Councillor Stanton referenced a data centre mentioned in the action plan, and asked if the data centre being in the document was creating an expectation of government that it would be agreed. He also asked if the council's exceptional financial support (EFS) was contingent on it being agreed, and whether that compromised the ability of the council to come to a fair decision on it. Andrew Blake Herbert said no to all of these questions.

Councillor Taylor recommended that the report be amended to read that a decision will be made in January, to make sure that it does not give the impression of predetermination.

Councillor Ruck asked for a breakdown of the action items and when they would be completed by.

Councillor Taylor asked if the council was expecting further conversations about lobbying central government to keep all the non-domestic rates, or if that was it.

Councillor Godwin asked how much the council had saved on climate change, and how much it had saved on the price of gas and electric.

Councillor Stanton said that the risk rating of nine against the Chartered Institute of Public Finance and Accountancy (CIPFA) recommendations in relation to children and children's welfare was not clear to him.

Councillor Stanton asked what the current rate of success was for care leavers obtaining their tenancy and holding on to it as responsible adults, and if that was currently trending up or down.

Councillor Stanton asked if there was an understanding of how many cases were moving straight to tier four from not previously having any involvement with services, or if there were opportunities for intervention which were being missed.

Councillor Stanton asked where the council had identified and implemented full cost recovery, and if there were areas where it could go further to generate a profit while still remaining below market rate.

Councillor Stanton asked how the debt recovery board was progressing, and what lessons had been learned from investigating and gathering historical debt that could be put into place to help residents from getting into predicaments in future.

Councillor Stanton asked what confidence there was in acquiring 2,000 units in the next five years, given the red-rated £300k saving associated with property acquisition.

Cabinet Responses to Scrutiny Recommendations

Finally, the board discussed cabinet responses to scrutiny recommendations regarding the Havering Volunteer Centre (HVC) and the scrutiny process itself. Sandy Hamberger said that the constitution was silent in regards to the response coming back to scrutiny board, but that a protocol was being developed to fill in the gaps.

Neil Stubbings said that Mark Butler had been in regular contact with HVC, and had provided them with some alternatives. He added that Mark was meeting with HVC representatives this week to go through with them in more detail what their preferences were.

Councillor Taylor asked if the council had conducted an assessment as to whether there was actually demand or a need for the particular unit that HVC was currently in. Neil Stubbings said that there were people out there who were waiting to go into a unit such as that.

Councillor Stanton asked if the HVC was being offered a market rate less a certain percentage, in recognition of the work they do. Neil Stubbings said that he was more than happy to look into it.

Councillor Keane urged Mr Butler to enter into a more vigorous conversation with the HVC, and perhaps prioritise providing them with some certainty about their future as soon as possible.

Councillor Good asked if the amount of work that the HVC does that relieves the council with lots of pressures and financial would be taken into consideration as a possible discount to the so-called market rate for that premises.