Lead Member: Councillor Heather Kidd, Leader

Lead Officer: Paul Clarke, Service Director – Strategy & Change

RESOLVED:

1.     To note the report and the progress it summarises.

2.     To provide guidance and instructions as appropriate on the Council’s plans for continued improvement and financial sustainability.

The Leader presented a six?month progress update on delivery of the Council’s Improvement Plan, approved in December 2025 in response to the Council’s financial emergency and external recommendations. Members noted that progress was broadly on track, with key milestones achieved including securing Exceptional Financial Support, setting a realistic 2026/27 budget, strengthening financial management, improving governance and compliance, and developing the new Corporate Plan and supporting strategies.  Positive feedback had been received from the externally chaired Improvement Board and peer reviewers.

It was recognised that the Council continued to face challenges relating to finance, capacity and capability, and that recovery would require sustained cultural change, improved workforce capacity and disciplined delivery over several years. Assurance was provided that detailed transformation proposals and an updated Medium Term Financial Plan would be brought forward over the coming months, with an emphasis on maintaining momentum, robust due diligence and continued support and investment in the workforce as the Council’s most important asset.

RESOLVED:

1.    To note the report and the progress it summarises.

2.    To provide guidance and instructions as appropriate on the Council’s plans for continued improvement and financial sustainability.

To note the Improvement Plan Progress Report and the progress it summarises, and provide observations and recommendations through a verbal report by the Chair to Cabinet at their meeting on the 10 June 2026.

The Committee considered the update on delivery and progress of the Council’s Improvement Plan, noting that it remains the overarching framework for stabilisation, recovery and longer-term transformation following the declaration of a financial emergency.

Members acknowledged that progress to date was broadly in line with the plan, with early milestones achieved, including securing Exceptional Financial Support, setting a more robust Improvement Plan.

The Committee considered the update on the Council’s Improvement Plan, noting that it remains the overarching framework for stabilisation, recovery and longer-term transformation following the financial emergency declared in 2025.

Members acknowledged progress made to date, including strengthened financial management, improved governance and compliance, the establishment of a more realistic budget for 2026/27, and the securing of Exceptional Financial Support. It was also noted that key foundations for longer-term improvement were being developed, including the corporate plan, transformation savings portfolio and supporting strategies.

However, it was emphasised that while progress on organisational structure and governance was evident, the Plan did not yet provide a fully detailed or quantified route to achieving financial sustainability. Members raised concerns regarding the lack of clarity on the delivery of savings, the reduction of reliance on Exceptional Financial Support, and the identification and timing of difficult service decisions required to address the structural deficit.

Officers advised that the Improvement Plan provides the strategic framework, with detailed financial planning and delivery to be set out in the forthcoming Medium Term Financial Plan. It was noted that this would include further development of the financial sustainability strategy and transformation programme, although the position would remain subject to ongoing change.

Members also sought greater clarity in reporting, including clearer explanations of performance ratings and the need to reduce ambiguity in standard wording within reports.

The Committee recognised the complexity and evolving nature of the Council’s financial position and noted the progress made to date, while emphasising the need for clearer, more detailed delivery plans and continued scrutiny as the next phase of improvement and financial planning develops.