Agenda item

1.     The draft Annual Governance Statement was presented by General Counsel, Mr Ben Watts.  Mr Watts highlighted the key points to Members, some of which included:

        a)     The draft Annual Governance Statement was an honest document which clearly set out difficulties and challenges. Members were asked to acknowledge that these were not unique to Kent and demonstrated the issues most local authorities were faced with.

        b)     A review of effectiveness had been carried out to examine the process of continuous improvement.

        c)     Mr Watts explained to Members how the Annual Governance Statement was compiled and that it aimed to encourage conversations on areas which required improvement.

        d)     The statement identified a range of further actions which needed to be considered and Members were asked to note that the prospect of Local Government Reorganisation had not been considered at the time of drafting. The statement drew on the new cohort of Members and this had been examined from a governance perspective.

2.     In answer to some Member comments and questions, the following was

        said:

        a)     It was acknowledged that the system where Members indicated their intention to speak at full Council needed to be reviewed for effectiveness. Mr Watts confirmed that the current voting system installed in the Council Chamber would be examined to see whether it could be adapted.  This would be subject to cost and suitability.  Mr Watts reminded the Committee that it was in the Chair’s gift to call Members in the order and way they saw fit.

        b)     At present, the Governance Working Group was not in effect, however, its reintroduction would not be ruled out.

        c)     It was acknowledged that some areas of the draft statement needed to be updated, such as the structural changes to the Council and overspend for 2024-2025. These would be reflected in the final version.

        d)     Mr Watts indicated one of the follow up actions would be to establish what material improvements had taken place and how they could be substantively felt by the Council as a whole. The emphasis would be on understanding and learning why an issue had occurred to promote improvement and prevention across the organisation. Mr Watts extended an offer of support and potential external facilitation to assist Committee Members to focus on their role and purpose.

        e)         A Member voiced his concern regarding the considerable overspend on the Adult Services budget. It was commented that in March/April 2025, the overspend on the budget was approximately £35 million that year and although he was not in receipt of any recent evidence, it was thought to be significantly more for the current financial year. He commented that the Committee needed to be in an informed position where officers and Members were held to account, and that it was important to establish a mechanism that reflected where saving plans were not being met.

        f)          In response to the Member’s concern, the Deputy Leader of the Council, Mr Collins, replied that funding and spending for Adult Social Care was a countrywide problem, however Mr Collins confirmed that it was at the forefront of the Administration’s work.

        g)         Mr Betts explained that the overspend on adult social care had been reported as part of improved financial governance arrangements. The Annual Governance Statement did not just cover non-delivery of savings, but highlighted factors such as increased demand pressures. Mr Betts confirmed the situation had changed since the previous year, as savings plans had been reviewed and implemented, as well as a more robust process being in place.

        h)         It was explained that the draft Annual Governance Statement was intended for the prime municipal year but needed to be accurate and reflect the risk and challenges of the organisation at the time of signing.  The draft statement was due to come to the Committee in July 2025, however, due to local elections and the new Committee, it was felt that Members would benefit from training first. It was explained to Members that the final version was signed off alongside the audited accounts.

        i)           Mr Watts confirmed that he would review the representation and signposting within the draft statement to address challenges which were already being reported elsewhere.

RESOLVED that Members COMMENTED and discussed the Draft Annual

Governance Statement.