The Overview and Scrutiny Committee of Islington Council met on Thursday 05 February 2026 to discuss the council's budget proposals, corporate performance, and complaints handling. Key decisions included the scrutiny of the draft budget proposals for 2026/27 and the Medium-Term Financial Strategy, alongside a review of corporate performance in the second quarter of 2025-26 and the Q2 complaints, member enquiry, and MP enquiry report.

Scrutiny of Budget Proposals 2026/27 and Medium-Term Financial Strategy

The committee reviewed the 'Draft Budget Proposals 2026/27 and Medium-Term Financial Strategy' (MTFS), which had been agreed by the Executive on 22 January 2026. The report outlined the proposed budgets for the General Fund, Housing Revenue Account, and the Capital Programme. It detailed significant growth pressures, including those in Adult Social Care, Children's Services and SEND, and Temporary Accommodation, driven by increasing longevity, complexity of needs, NHS backlogs, and a rise in homelessness cases. Inflationary pressures were also highlighted, impacting adult social care contracts, temporary accommodation costs, and other commissioned services.

The report identified £18.131 million in General Fund savings proposals between 2026/27 and 2030/31, with £8.157 million being new proposals for 2026/27. These savings are intended to address a cumulative £179 million budget gap. Savings are drawn from all directorates, with significant contributions from Resources and Children & Young People. The proposals aim to protect frontline services by prioritising internal efficiencies and optimisation.

Management actions were also detailed, totalling £10.212 million in 2026/27, focusing on demand management, efficiency actions, funding substitution, implementing previously agreed decisions, and income measures. The Housing Revenue Account (HRA) for 2026/27 was presented as balanced, with £7.434 million in savings planned between 2026/27 and 2028/29 to offset rising costs. The Capital Programme outlines a 10-year investment plan totalling £1.179 billion.

The Section 151 Officer's comments highlighted the robustness of the budget estimates and the adequacy of proposed financial reserves for 2026/27, while also emphasising the need to strengthen reserves over the medium term due to increasing risks and potential reductions in government funding. The Monitoring Officer's comments reinforced the council's statutory duties regarding financial management and the setting of a balanced budget. Environmental implications were considered, noting that while some capital projects would reduce emissions, overall expenditure would increase net emissions over the MTFS period due to constraints on capital investment for decarbonisation. An Equalities Impact Assessment indicated a potential negative cumulative impact on residents with protected characteristics, which has been mitigated as far as possible.

Corporate Performance Q2 2025-26

The committee received an update on corporate performance against the Islington Together Delivery Plan 2024-26 at the end of Q2 2025/26. Overall, most Delivery Plan actions remained on track, but seven actions were rated amber, indicating they were off track or performing below target. Seven delivery plan metrics were also amber rated, and seven were red rated, including school attendance rates, call answer rates, digital transaction percentages, resident satisfaction rates for Access Islington, emergency admissions for over 65s, mental health recovery pathway access, and residual waste per household.

Notable successes were highlighted across various missions. Under Child-Friendly Islington, the Schools Re-organisation Plan was successfully implemented. For Community Wealth Building, the Income Maximisation Team had secured £13.6 million per year in additional benefits for residents. Empowering People saw 100% of residents using the Bright Lives service maintained outside statutory services for a year. A Safe Place to Call Home reported fewer households in temporary accommodation than targeted. Healthier Islington noted a high percentage of adult social care users receiving reviews and good or outstanding ratings for regulated services. Greener Islington highlighted the installation of bike bays and progress on the cycle network.

Challenges were also detailed, including ongoing issues with school attendance rates, delays in national SEND reforms, and recruitment challenges impacting the age-friendly borough initiative. Recycling rates remained below target, and Liveable Neighbourhoods coverage was also falling short of projections. Specific metrics rated red included the percentage of calls answered, digital transactions, resident satisfaction rates for Access Islington, emergency admissions for over 65s, mental health recovery pathway access, and residual waste per household.

Q2 Complaints, Member Enquiry and MP Enquiry Report

The committee reviewed the Q2 2025/2026 performance report for complaints, member enquiries, and MP enquiries. Demonstrable progress was noted in timeliness and overall process management, with significant improvements in acknowledgement and response times for Stage 1 complaints. However, service delays remained the most common reason for complaints, with communication and service quality concerns on the rise.

At Stage One, 89% of corporate complaints were acknowledged within five working days, and 72% were responded to within the Ombudsman's 10-working day timescale, a marked improvement from the previous year. Stage Two complaints also showed improvements, with 88% acknowledged within five working days and 85% responded to within the 20-working day target. The number of complaints received across all stages had increased compared to the previous year, with Homes and Neighbourhoods Directorate accounting for the majority.

The report detailed Ombudsman determinations, showing that the Housing Ombudsman handled a larger share of activity, with a 60% maladministration rate. For Member Enquiries, there was a significant increase in logged enquiries, with Homes and Neighbourhoods and Environment and Climate Change directorates receiving the most. Work was underway to improve the tracking of MP enquiries and develop a central reporting mechanism. The report also outlined the ongoing improvement programme, focusing on sustaining timeliness, addressing delays, and improving data quality. Financial implications included compensation payments and staffing costs related to complaints handling.

Forward Plan of Key Decisions

The committee noted the Forward Plan of Key Decisions, which outlines upcoming executive decisions to be taken by the council. This included items such as the Islington Rough Sleeping Drug and Alcohol Treatment Service procurement, the HR cloud-based corporate software platform, the LGA Corporate Peer Challenge progress report, and the Draft Budget Proposals 2026/27 and Medium Term Financial Strategy.

Scrutiny Review Tracker

The committee reviewed the Scrutiny Review Tracker, which provides an overview of ongoing and completed scrutiny reviews.

Verbal Update from Committee Chairs

There were no verbal updates from committee chairs.

Work Plan and Action Sheet

The committee noted the Work Plan and Action Sheet for future meetings.