The Scrutiny Committee meeting on Thursday, 22 January 2026, focused on two primary areas: the reasons behind Kent's outlier status in issuing Education, Health and Care Plans (EHCPs) and a review of the draft revenue budget, medium-term financial plan, and capital programme for 2026-2029. The committee noted a report on EHCPs, acknowledging that while Kent's rate remains higher than national averages, the gap is narrowing, and the council is implementing strategic changes to improve SEND provision. Regarding the budget, the committee reviewed the administration's draft proposals, which include a balanced revenue budget for 2026-27 achieved through a combination of spending growth, savings, income generation, and the use of one-off measures such as capital receipts and earmarked reserves.

SEND Scrutiny - Education Health and Care Plans (EHCPs)

The committee discussed a report examining why Kent is an outlier in the national trend of issuing Education, Health and Care Plans (EHCPs). While the report acknowledges that Kent's EHCP rate is higher than national and regional comparators, it highlights that the gap is narrowing. The discussion delved into various potential contributing factors, including socio-economic influences, environmental factors, and changes in diagnostic criteria for conditions like Autism Spectrum Disorder (ASD). Officers presented evidence suggesting that the management and leadership of the SEND system, rather than solely external factors, play a critical role in influencing demand for EHCPs. Strategic actions being taken by Kent County Council (KCC) include strengthening the policy framework, developing a more consistent service model, improving the commissioning of school places, and enhancing the management of statutory processes. Initiatives such as the This is Me programme, aimed at supporting neurodivergent children in mainstream schools, were highlighted as showing promising early results in reducing local demand for EHCPs. The committee was asked to note the report, acknowledging the complexity of the issue and the ongoing work to improve SEND provision and financial sustainability.

Draft Revenue Budget 2026-27, Medium Term Financial Plan (MTFP) 2026-29, Draft Capital Programme 2026-2036, and Draft Treasury Management Strategy

The committee reviewed the administration's draft budget proposals for the upcoming financial year and the medium term. The draft revenue budget for 2026-27 is balanced, with a net expenditure of £1,647.8 million. This balance is achieved through a combination of spending growth, planned efficiency savings, income generation, and the use of one-off measures totalling £25 million, including £9 million from the flexible use of capital receipts and £16 million from earmarked reserves no longer required for their original purpose. The plan for 2027-28 and 2028-29 indicates a projected shortfall that will need to be addressed through further savings, income generation, or council tax increases.

Key areas of spending growth are in adult social care (£787.0 million, an 11.0% increase) and children's services (£421.0 million, a 7.7% increase), reflecting rising demand and costs. Funding for the budget will come from council tax (£1,048.1 million, a 5.1% increase) and central government settlement (£595.4 million, a 12.5% increase). The draft capital programme for 2026-2036 totals £1,901 million, with significant investment planned for roads and infrastructure (£1,341 million) and school buildings (£386 million). Notably, the capital programme includes no new borrowing impacting the revenue budget for 2026-27.

The committee discussed the significant financial risks facing the council, particularly in adult social care due to rising demand, complexity of needs, and market fragility. The non-delivery of agreed savings and income targets is also a major concern, as shortfalls would necessitate drawdowns from reserves, weakening the council's financial resilience. The report highlights that the council's reserves have been drawn down over successive years, and the general reserve needs to be restored to 5% of net revenue. Sensitivity analysis was presented, indicating that adult social care demand and costs, children's social care demand, waste volumes, home-to-school transport, interest rates, and council tax collection rates are key areas of financial risk. Mitigation strategies include strict financial discipline, recruitment controls, and targeted interventions in adult social care.

The committee also noted the provisional local government finance settlement for 2026-27, which includes a multi-year announcement for the first time since 2016, providing greater certainty for medium-term financial planning. However, the settlement also includes reforms to business rate retention and grant allocations, with some grants consolidated into the Revenue Support Grant (RSG). The council's core spending power is projected to increase by £127.3 million in 2026-27. The council tax precept for 2026-27 is proposed at a 3.99% increase, resulting in a Band D charge of £1,758.60 for the County Council's share.

Short Focused Inquiry - Water Quality and Supply

The committee agreed to establish a Short-Focused Inquiry (SFI) into the failure of water supply in Tunbridge Wells and surrounding areas in November 2025, and subsequent interruptions in early January 2026. The inquiry will seek to identify lessons learned but not enacted between 2022 and 2025, examine the causes and handling of the recent outage, and assess South East Water's preparedness and response. It will also explore steps to prevent recurrence, build greater resilience for KCC services, and determine how KCC can best contribute to future support and relief efforts. The terms of reference will also include identifying measures to improve water supply infrastructure resilience and SEW's accountability. Evidence will be drawn from KCC leadership, Tunbridge Wells Borough Council, South East Water, water industry regulators, the Kent and Medway Resilience Forum, and community stakeholders.

Work Programme

The committee noted the work programme, with upcoming items including a review of VAT and business rates on private school fees, an update on Family Hubs, and a follow-up on previous Short-Focused Inquiry recommendations. Future items will also cover winter road maintenance and a review of SEND provision in relation to health services and schools.