The Public Accounts Select Committee met on 17 September 2025, and discussed the Period 4 Monitoring Report, the Housing Revenue Account (HRA) Budget for 2025-26, and Council Tax and Business Rates, noting the reports and planned actions. The committee also agreed to a broad review of the reforms to local government finance at their next meeting.

Period 4 Monitoring Report

Catherine Nid, Director of Finance, presented the Period 4 Monitoring Report, highlighting an underspend of £7.9 million, largely due to the early delivery of £6.7 million of 2026/27 savings. The report also noted a £2.5 million overspend in the dedicated schools grant, and a balanced Housing Revenue Account.

Key discussion points included:

• Children's Social Care Data: Councillor Eva Kestner raised concerns about data collection and reliability in children's social care. Catherine Nid explained a multifaceted project to cleanse data, reset contracts, and implement panel reviews to ensure accuracy and validity.
• Temporary Accommodation Uncertainties: Councillor John Paschoud questioned the reliability of the balanced budget in general fund housing, particularly regarding temporary accommodation. Catherine Nid acknowledged potential external factors like the cost of living crisis but expressed confidence in the service's management and policies.
• Early Delivery of Savings: Councillor Hau-Yu Tam asked about the impact of early savings on service delivery. Catherine Nid assured the committee that the impacts were carefully considered when drafting the savings items, and that ongoing monitoring would identify any negative consequences.
• Public Realm Sustainability: Councillor James Rathbone, Chair of the Public Accounts Select Committee, raised concerns about the sustainability of underspending in the public realm, given service standard issues in parking and street environmental services. Catherine Nid acknowledged the need for a deep dive into the service's delivery model and potential for transformation funding.
• General Fund Risks: Councillor Joan Millbank noted the general fund risks, particularly regarding inflation and employer national insurance contributions.

The committee noted the report, agreeing to continue monitoring the risks and uncertainties.

Housing Revenue Account (HRA) Budget 2025-26

Gillian Douglas, the Executive Director of Housing, presented a report indicating a more positive position for the HRA compared to the previous year, with improvements in the repairs service.

Key points:

• Repairs Service Transformation: Increased productivity of the in-house operative workforce, reduced contact centre waiting times, and better contract management were contributing to the improvements.
• Project Delivery Uncertainties: Councillor John Paschoud raised concerns about uncertainties in project delivery, particularly regarding an infill project on the Valentine Court estate in Perryvale. Gillian Douglas acknowledged the challenges related to viability and funding, but affirmed the will to increase housing supply.
• Disrepair Cases: Councillor Mark Jackson noted the high cost of disrepair cases and questioned the budget for the managed disrepair project. Gillian Douglas expressed confidence in the budget, highlighting the increased capacity of the in-house legal team.
• Broccoli PFI Figures: Councillor Joan Millbank requested clarification on the Broccoli Private Finance Initiative (PFI) figures. Tony Riordan, strategic finance business partner, explained the contract's costs, government subsidy, and end date in June 2027.
• Asset Management Strategy: Councillor Mark Ingleby inquired about the asset management strategy and alternative delivery vehicles for new social and affordable housing. Gillian Douglas noted the outline asset management framework produced by Savills and the use of Lewisham Homes as a housing company.

The committee welcomed the progress made by the department and agreed to continue monitoring the finances.

Council Tax and Business Rates

David Austin, Executive Director of Corporate Resources, presented the council fund report on council tax and business rates, supported by Mick Lear, the revenues and benefits manager. The report highlighted challenges in council tax collection rates since COVID-19, while business rates collection remained positive.

Key discussion points:

• Council Tax Collection Decline: Councillor James Rathbone noted a significant decline in council tax collection rates and sought clarification on the data. David Austin explained that Hackney's data breach skewed the London average, and that Lewisham was working to recover its collection rates to pre-pandemic levels.
• Can't Pay vs. Won't Pay: Councillor Joan Millbank inquired about help available for those who can't pay council tax. Mick Lear detailed the Council Tax Reduction Scheme and welfare support provisions, emphasising the importance of distinguishing between those who can't pay and those who won't.
• Councillor Hau-Yu Tam asked about the recovery rate when bailiffs are used. Mick Lear said that the council does not have figures on what the recovery rate is when bailiffs are used.
• Automation and IT Systems: Councillor Mark Jackson asked about automation within processes and the stabilisation of IT systems. David Austin and Mick Lear described efforts to automate processes, improve the online payment process, and utilise AI to streamline tasks.

The committee noted the report and the actions being taken to improve council tax collection.

Work Programme

The committee agreed to a broad review of the reforms to local government finance at their next meeting, in place of a budget savings proposals item. Councillor Joan Millbank sought clarification on whether the item would be taken within the normal meeting time or require extra time. Councillor James Rathbone confirmed it would be in place of a budget savings proposals item. David Austin added that the treasury management session would be recorded for members to view at their convenience.