Agenda item

Dan Kennedy, Corporate Director – Residents’ Services, Matt Davis, Director – Strategic & Operational Finance and Ceri Lamoureux – Head of Finance – Residents’ Services were in attendance to respond to Members’ queries in respect of the Budget and Spent report.

Members referred to point 19 of the report on page 78 and noted that the gross budget pressure was largely driven by temporary accommodation and homelessness support, with Heathrow having a material effect on local supply and demand. It was highlighted that 82% of rough sleepers were not Heathrow?driven, and clarification was sought on what actions were being taken to ensure the remaining target was achievable and how overall homelessness numbers were being reduced.

In response, it was explained that a proactive approach had been adopted. Members heard that officers were working closely with private sector landlords, identified as one of the largest sources of homelessness presentations in the Borough. Engagement was taking place with landlords seeking to evict tenants to understand circumstances, negotiate, and mediate wherever possible to prevent evictions. Where eviction could not be prevented, including cases involving friends and family, domestic abuse, or private sector evictions, efforts were being made to secure alternative suitable accommodation, usually within the private rented sector, through work with other landlords. It was further stated that, with Cabinet support, a significant increase in council?owned social rented properties had been delivered during the year. This had helped to alleviate pressures by enabling eligible local residents to move from high?cost temporary accommodation into secure, settled homes. In addition, it was confirmed that capped or fixed rates for temporary accommodation had been successfully negotiated over the previous 12 months, providing greater cost control in a market where nightly rates were typically increasing by more than 10%. It was acknowledged that the market remained extremely challenging, with a number of landlords exiting, potentially due to forthcoming reforms and increased compliance requirements. However, it was emphasised that all possible measures were being taken, with Cabinet support, to prevent homelessness and support families into settled accommodation as quickly as possible.

Councillors requested an explanation of point 21. Officers responded that this budget line comprised a range of measures, including some increases in income, more efficient cost controls, and improved management practices, particularly within the museum and bunkers service. It was stated that similar approaches were being applied across the Council to ensure best value for residents and prudent financial management.

A further question was raised in relation to point 14 concerning increased fleet insurance costs, and clarification was sought on whether the review to mitigate these costs was still ongoing or had concluded.  It was confirmed that the review was underway and expected to conclude in early April. It was added that measures to manage insurance costs had already been in place for several years and were being strengthened through increased training and more detailed analysis of the causes of insurance claims. It was acknowledged that the insurance market remained extremely challenging, and that smarter ways of working, including improved vehicle use and enhanced safety training for drivers and staff, were being pursued.

Councillors referred to point 16, noting a forecast shortfall of £0.9 million against the garden waste subscription and further pressures across income streams, with the trade waste income target rolled over to 2025/26. Clarification was sought on how this aligned with the £2.6 million opportunities identified within resident services, including waste funding. In response, it was explained that a range of measures was being considered across waste services. It was noted that the Council had previously been open about commercial waste fees and charges, which had allowed competitors to undercut the service. A different approach was therefore being adopted, including a comprehensive review of commercial waste opportunities. Confidence was expressed that a greater market share could be secured, given the Council’s local presence and reliability, alongside more proactive engagement with local businesses. It was also explained that opportunities related to waste prevention were being pursued, including promoting waste reduction among residents and businesses and ensuring waste was disposed of through the most cost?effective streams. By way of example, it was highlighted that more than 20,000 residents living in flats now had access to food waste caddies, enabling significant unit cost reductions by diverting waste from household waste streams to food waste processing. It was stated that this work would continue, and satisfaction was expressed with the progress made and residents’ positive engagement with food waste recycling.

The Committee sought further clarification in relation to the savings tracker at table 2, noting that 48% of savings had been banked by month 9 and querying confidence that savings marked as “green – delivery in progress” would be fully delivered by the end of the financial year. Officers responded that, given the advanced stage of the financial year, all savings had been critically reviewed with the support of the finance team and confidence was expressed that they would be delivered. It was stated that remaining issues had been resolved and that learning had been incorporated into future programmes.

A further question was raised in relation to point 25, where mitigations were being sought in?year. Clarification was requested on the nature of these mitigations and the impact assessments being undertaken, particularly in relation to service reductions or vacancy management. In response, it was explained that the senior management team, working with Cabinet, had been continuously reviewing service delivery to identify efficiencies. Mitigations were being achieved through smarter working, including the Council’s digital strategy, use of artificial intelligence, and improved data and intelligence. These approaches were enabling efficiencies and service changes to be delivered without adverse impacts on frontline service delivery, and this work was expected to continue.

The Chair commented on the attendance of finance officers at monthly budget monitoring meetings, noting that while the reports were important, finance officers were often present without being asked questions. It was suggested that the arrangements be reviewed to ensure effective use of officer time, particularly given the service?focused nature of the Committee’s discussions. The Chair proposed that this be discussed offline with the relevant Labour Lead and officers to agree a more balanced approach, and this suggestion was acknowledged.

RESOLVED: That the Residents’ Services Select Committee:

1.    Noted the budget monitoring position as of December 2025 (Month 9) for the Council; and

2.    Noted the budget monitoring position as of December 2025 (Month 9) for the services within the remit of the Residents’ Services Select Committee.