The Performance and Finance Scrutiny Sub-Committee met on Tuesday 29 July 2025, to discuss the Revenue and Capital Monitoring Final Outturn Report for 2024-25, and the Strategic Performance Report for Quarter Four of the same year, and to set targets for the coming years. The sub-committee noted the 2024-25 financial outturn position, and considered the Strategic Performance Report, including proposed indicators and targets for 2025-26 to 2027-28.

Revenue and Capital Monitoring 2024-25 Final Outturn

The sub-committee reviewed the council's financial performance for the 2024-25 fiscal year, as detailed in the Revenue and Capital Budget 2024-25 – Final Outturn report.

Revenue Outturn

The final revenue outturn for 2024-25 was an underspend of £1.553m. This underspend was transferred to the Budget Planning Reserve, achieving a balanced budget. Key points included:

• Directorate performance: Variances were noted across different directorates, including underspends in Managing Director's office (£2.072m) and Resources (£303k), and overspends in Culture, Environment and Economy (£2.513m), Housing and Regeneration (£5.607m), and Adult & Public Health (£5.494m).
• Housing and Regeneration: A significant overspend of £5.607m was attributed to rising costs of temporary accommodation due to increased demand.
• Dedicated Schools Grant (DSG): The final outturn on the DSG was a deficit of £11.582m, primarily due to an overspend on the High Needs Block.

Capital Outturn

The final General Fund capital programme budget in 2024/25 was £122.598m, with an outturn of £40.465m, representing 33% of the budget. The variance of £82.133m comprised £78.349m in slippage and £3.784m in underspend.

The Housing Revenue Account (HRA) capital programme budget was £52.790m, with an outturn of £25.992m (49%). The variance of £26.798m included £26.640m slippage and a net underspend of £158k.

Council Trading Structure Update

The sub-committee received an update on the council's trading companies, detailed in the Trading Company Update 2024-25 report, which included:

• Concilium Group Limited: Classified as a dormant entity.
• Sancroft Community Care Ltd: Reported a net profit of £6,202 against a budgeted loss of £37,232.
• Concilium Assets LLP: Reported a net loss of £145,948, against a budgeted profit of £135,229.
• Harrow Strategic Development Partnership LLP (HSDP): Noted expenditure of £13.9m across all sites, with the council's liability being 50% of this amount (£6.95m).

Right to Buy Receipts

The sub-committee discussed the Right to Buy receipts position, highlighting the importance of utilising these receipts within the specified timeframe to avoid repayment to the government with interest.

Harrow Strategic Development Partnership (HSDP) Financial Performance

The sub-committee reviewed the financial performance of the HSDP, a joint venture with Wates Construction Limited, for projects at Poets Corner and Byron Quarter.

Strategic Performance Report Quarter Four

The sub-committee considered the Strategic Performance Report Q4 for 2024-25, which provided an overview of the council's performance against its corporate plan, Restoring Pride in Harrow . The report highlighted key achievements, challenges, and proposed targets for 2025-26 to 2027-28.

Performance Summary

The report assessed performance against three key priorities:

• A council that puts residents first: Noted the launch of a new General Enquiries telephone team and the mobilisation of a new information and advice contract with Citizens Advice. Challenges included dealing with issues related to the auto-renewal of Freedom Passes[^2] and administering changes to Council Tax premiums and support. [^2]: Freedom Passes are a concessionary travel scheme in London that allows free travel on most public transport for eligible older and disabled people.
• A borough that is clean and safe: Highlighted the focus on reducing environmental crime, extending the bulky waste service, and rolling out electric vehicle charging points. Challenges included meeting savings targets for parking and recycling, performance on the tri-borough enforcement contract, and rising costs of temporary accommodation.
• A place where those in need are supported: Noted the strengthening of children's social work teams, improved timeliness of Education, Health and Care Plans[^3], and a good outcome from a SEND peer review. Challenges included responding to the 'inadequate' outcome of the Ofsted Children's Services inspection and cost pressures in Adults Social Care and Children's Services. [^3]: Education, Health and Care Plans (EHCPs) are for children and young people aged up to 25 who need more support than is available through special educational needs support.

Target Setting 2025-26 to 2027-28

The sub-committee reviewed proposed indicators and targets for the next three fiscal years, as detailed in the Target Setting 2025-26 to 2027-28 final report, aligning them with the Corporate Plan and Council Priorities.