The Corporate Overview and Scrutiny Committee met on 15 January 2026 to discuss the council's strategic direction, treasury management, and the Medium Term Financial Strategy (MTFS). Key decisions included the endorsement of the council's strategic direction for 2026-2028 and a commitment to explore scheduling an additional meeting to scrutinise the £840 million budget before it goes to Full Council.

Strategic Direction 2026-2028

The committee received a briefing on the council's proposed strategic direction for 2026-2028, titled Staffordshire is the beating heart of the country. This vision aims to deliver improvements for local people by protecting heritage and countryside, driving economic growth, and creating safer, thriving communities. The plan outlines commitments to empower communities, support innovation, and ensure efficient spending. A significant concern raised was the recent announcement of a new railway line through Staffordshire without prior consultation, highlighting the importance of the council's branding and place marketing strategy to ensure the county is not overlooked.

Councillor Murray, Acting Leader of the Council, explained that the two-year timeframe for the strategy was necessitated by the impending Local Government Reorganisation (LGR). He expressed hope that the strategic directions would be carried forward into any new county structure. When asked about tangible differences residents would feel by 2028, Councillor Murray highlighted investments in children and families, road infrastructure, and digital connectivity. He also emphasised the importance of strengthening Staffordshire's brand to attract investment and boost tourism, citing the need for greater recognition of the county's major companies and institutions like Keele University.

Councillor Luca raised concerns about the impact of central government funding shortfalls on children's services and vulnerable people. Lindsay Bisson, addressing the financial pressures, confirmed that the MTFS reflects significant investment in children's services and acknowledged underfunding in SEND (Special Educational Needs and Disabilities) provision, with lobbying efforts planned to address this.

Councillor White supported the focus on place branding and tourism, noting the visitor economy's significant contribution to Staffordshire. She highlighted existing successes such as the We Are Staffordshire initiative and the county's recognition as a Local Visitor Economy Partnership. Councillor Murray elaborated on the need for stronger place branding, citing examples like the National Arboretum and Alton Towers not being widely recognised as being in Staffordshire. He also introduced a new nighttime economy study and a hospitality conference as part of efforts to boost the local economy.

The discussion also touched upon the rural economy, with Councillor Lugar advocating for greater support for small rural businesses and holdings. Councillor Murray outlined plans to protect county farms, describing them as crucial for new farmers and the heart of rural communities. He also addressed concerns about housing development impacting green land and the importance of protecting farmland for food security.

Councillor Rose questioned how the administration would prepare for and mitigate increased flooding, given the environmental policy's lack of mention of climate change. Councillor Murray stated that climate change is a scientific fact but argued that a climate emergency declaration could lead to damage, citing examples of inappropriate solar farm placements on farmland. He confirmed that work is underway to address flooding through highway plans and improved infrastructure maintenance.

A significant portion of the discussion revolved around the sale of county farms. Councillor White questioned the planned sales, referencing the existing Rural Economic Strategy from 2023. Councillor Murray confirmed that the rural strategy is being reviewed and fundamentally changed, highlighting his efforts to prevent the sale of county farms for energy or housing development. He stated that the council would not sell off whole farms, distinguishing this from previous sales of smaller parcels or non-viable farm buildings.

Half-Yearly Treasury Management Report

The committee reviewed the Half-Yearly Treasury Management Report for the period ending 30 September 2025. The report detailed the council's strategy for borrowing, lending, and cash management, emphasising a prudent, low-risk approach focused on security and liquidity. During the period, the council repaid £15 million of external loans, utilising cash reserves to achieve savings on debt charges. The council achieved a return on its investments of 4.76%, exceeding the agreed benchmark of 3.62%.

Councillor Griffiths inquired about the sustainability of using reserves for payments. Mel Stokes, an expert in treasury management, explained that this is reviewed annually as part of cash flow management and that there is an indicator for future sustainability. She noted that the decision to use reserves was influenced by prevailing interest rates, and borrowing would be considered if rates were expected to rise.

Councillor Farrell asked about a target for cash balances. It was explained that there is no specific target, but cash forecasts are conducted annually, and actuals are monitored against these forecasts.

Scrutiny Work Programme Update

The committee received an update on the scrutiny work programme, noting that 15 meetings had been held across the four scrutiny committees since the last update. Working groups had been established for the MTFS, network management, and elective home education. The committee also noted that the Health Committee was considering a working group on winter performance of local trusts. Members shared positive feedback on the educational and eye-opening nature of scrutiny work.

Medium Term Financial Strategy (MTFS) 2026-2031

The committee considered the draft MTFS for 2026-2031, which had been scrutinised by a dedicated working group. The report highlighted key areas of focus: adult social care, highways maintenance, and staffing. For adult social care, rising demand and increasing costs have created an £8.9 million in-year pressure, with a cost recovery plan in place. Highways maintenance faces a significant challenge, with current funding levels only meeting around 6% of what is needed to maintain the network, and preventative maintenance was recommended to continue. Staffing pressures were also discussed, including the growth of the organisation and a recruitment freeze.

The council has achieved a balanced budget for 2026-2027 with a 3.99% council tax increase, but future years are anticipated to be more challenging, requiring further efficiencies and cost savings. The committee welcomed the additional investment in children's services and highways.

Councillor White raised concerns about the lack of opportunity for scrutiny of the £840 million budget before it goes to Full Council, citing the late timing of the budget process and the absence of cabinet members at key meetings. The committee agreed to explore scheduling an additional meeting to allow for proper scrutiny of the budget.

Councillor Rose questioned reductions in community grit bins, tree management, and school crossing patrols, as highlighted on the council's Facebook page. Pete, an officer, clarified that these represent efficiencies and budget alignments rather than service reductions, with services being topped up as needed.

The committee discussed the implications of a 3.99% council tax rise, which provides a one-year balanced budget. It was explained that further efficiencies, estimated at £11.5 million, would be needed in subsequent years, or an increase in income streams, potentially through council tax, would be required.

The committee also discussed the externalisation of standards complaints against councillors, noting it as an unbudgeted pressure that would need to be met from underspends or requested from Cabinet.

The committee approved the MTFS report and its recommendations, with a commitment to explore an additional meeting for budget scrutiny.