The Leadership Team of Kensington and Chelsea Council met on Wednesday, 20 March 2024, to discuss a range of financial, operational, and legislative matters. Key decisions included approving the Q3 financial monitoring report, renewing the joint venture agreement for Central London Forward, and endorsing arrangements for compliance with the Social Housing (Regulation) Act 2023. The team also agreed to revised arrangements for the Oracle ERP implementation, noted the option to introduce a second home premium, and approved the allocation of Household Support Fund for vulnerable residents.

Q3 Financial Monitoring Report 2023/24

The Leadership Team reviewed the council's financial position at the end of quarter 3 for the 2023/24 financial year. Councillor Johnny Thalassites, Lead Member for Finance, Customer Services & Net Zero Council, presented the report, noting that while the council's overall financial position was generally strong, prudence in spending and risk management remained essential. The team noted a General Fund revenue budget forecast overspend of £2.778m, including a £1.463m overspend across service budgets. They also noted a Housing Revenue Account (HRA) forecast transfer of £2.560m to the capital programme and a General Fund Capital Programme forecast underspend of £10.992m. Several rephasings of capital budget slippage and new capital funding requests were agreed, along with proposed capital virements within directorates. The team also noted the savings position, reserves position, and agreed to movements between reserves.

Renewing the Joint Venture Agreement - Central London Forward

Councillor Josh Rendall, Lead Member for Adult Social Care & Public Health, introduced the report on renewing the joint venture agreement for Central London Forward (CLF). CLF is described as the largest of four sub-regional partnerships across Greater London, acting as a conduit between boroughs and London government, championing the strategic interests of central London's residents and businesses. The Leadership Team agreed that the annual subscription fee of £40,000 was good value for money, providing additional services beneficial to borough residents and communities and promoting inclusive and sustainable growth. The team agreed to enter into a renewed partnership agreement for CLF for the period 1 April 2024 to 31 March 2028, with the annual subscription fee frozen at £40,000.

Council Compliance with the Social Housing (Regulation) Act 2023

Councillor Sof McVeigh, Lead Member for Housing Management, Housing Safety & Building New Homes, introduced the report on the council's compliance with the Social Housing (Regulation) Act 2023. This legislation introduces significant changes and new regulatory powers for the Regulator for Social Housing, stemming from the Grenfell tragedy. The report outlined the council's comprehensive arrangements to meet these new requirements, integrating them into the existing multi-year improvement programme for Housing Management. The team noted the overview of the Act, 'Awaab's Law', and the Building Safety Act 2022, and endorsed the arrangements made by the council. It was agreed that the Director of Housing Management would be the statutory Health and Safety Lead Officer under the Act.

Annual Resilience Report - Standards for London Self-Assessment

Councillor Elizabeth Campbell, Leader of the Council, introduced the Annual Resilience Report, highlighting the council's ongoing work to bolster its resilience preparedness arrangements in 2023. The report included a self-assessment against the Resilience Standards for London. The Leadership Team approved the Annual Resilience Report for 2023 and agreed with the current position statement for each resilience standard. They noted areas of improvement, particularly those informed by the Grenfell Public Inquiry, and ongoing developments in resilience training, emergency rota strengthening, and community resilience.

Implementation of the Enterprise Resource Planning (ERP) Solution - Oracle - Revised Arrangements

Councillor Johnny Thalassites, Lead Member for Finance, Customer Services & Net Zero Council, presented the report on the Oracle ERP implementation. He explained that the original October 2024 'Go Live' date was no longer viable due to unforeseen complexities, particularly concerning data extraction from Hampshire County Council's SAP system and the mandatory implementation of Oracle's new 'Redwood' user interface. The team agreed to a revised 'Go Live' date of April 2025, which was considered the safest and most manageable option. This decision necessitated extending contracts with Bramble Hub Ltd and Version 1 Solutions Ltd, entering into a new call-off contract with Version 1, extending the arrangement with Hampshire County Council, and varying the contract with Insight Direct (UK) Limited for additional Oracle licences. The additional costs associated with the revised timetable, totalling £1.924m, will be funded from reserves, with a reduced programme contingency of £600k.

Second Home Premium

Councillor Johnny Thalassites also introduced the report on the potential introduction of a Council Tax premium for second homes, enabled by the Levelling Up and Regeneration Act 2023. This Act allows councils to apply a premium of up to 100% on second homes. The Leadership Team agreed to make a determination to allow the council the option to implement a Second Home Premium of up to 100% with effect from 1 April 2025, and to publish the requisite notice. A further decision on whether to implement the premium, and at what percentage, will be made as part of the budget considerations for 2025/26, once further guidance from the government is received.

Household Support Fund Update and Mitigations

Councillor Johnny Thalassites presented an update on the Household Support Fund (HSF), noting that the government had announced a six-month continuation of the fund from April to September 2024. The council had received £6 million from the HSF since October 2021. The team agreed to allocate the anticipated 2024/25 HSF funding to support Free School Meals during school holidays, an emergency food fund for vulnerable individuals, the Kensington and Chelsea Foundation's Cash First scheme, and the Kensington and Chelsea Social Council's Community Resilience Support Programme. They also agreed that any shortfall in the final HSF allocation would be delegated to the Executive Director of Resources for decision, following consultation with the Lead Member for Finance, Customer Services and Net Zero.