The Finance, Policy and Resources Committee for Richmond Council were scheduled to meet on Thursday, 25 September 2025 to discuss the borough's financial strategy, capital projects, and various initiatives related to economic growth and sustainability. The committee was also expected to discuss the tendering process for a commercial cleaning contract, and proposals for the future of a former school site.

Medium Term Financial Strategy

The committee was scheduled to receive an update on the Medium Term Financial Strategy (MTFS), a document that sets out the council's financial plans for the coming years. The report before the committee noted that there had been key changes since the budget was set in February 2025, such as continuing demand pressures, and ongoing challenges around the cost of living. It also noted that the government had published its Fair Funding Review, which proposes a fundamental reset of national grant funding allocations between councils. Initial estimates suggested the proposed changes could reduce the council's grant levels by 90%, or £45 million annually, by 2028/29.

The report stated that the Council was launching a new Transformation Programme, building on the foundations of the previous Change Programme, with the aim of delivering a potential £30 million of ongoing revenue savings. The committee was asked to approve a one-off allocation of £1.5 million from the Financial Resilience Reserve to establish a new Transformation Programme Delivery Fund.

Capital Programme Review

The committee was asked to consider and approve a review of the current six-year capital programme¹. The report pack detailed changes since the 2024/25 outturn, new schemes, and how the capital programme is funded. The report pack summarised that since 2018, the council has spent £268 million on the capital programme, with the current six-year programme forecasting an underlining need to borrow of £140.2 million.

The main schemes in the revised six-year capital programme relate to Twickenham Riverside, new school provision, decarbonisation projects, the residential property acquisition programme, Disabled Facilities Grant funded schemes, and highways and pavement works.

The report pack also stated that it was proposed to add the following budgets to the capital programme:

• New Clarendon School at Petersham: £5.33 million, funded by a Department for Education (DfE) grant.
• Empty Property Grants: £175,000, funded by Section 106² affordable housing receipts.
• Public Sector Decarbonisation Scheme (PSDS) Phase 4 Heat decarbonisation and energy efficiency: £8.94 million, utilising £7 million Public Sector Decarbonisation Scheme (PSDS) Phase 4 grant allocation with the remainder funded directly by the council.
• Demolition and change of use of the Clarendon School site – Hanworth Road: £0.5 million, to be financed by borrowing.

Public Sector Decarbonisation Scheme - Phase 4 Award

The committee was scheduled to consider proposals for the Public Sector Decarbonisation Scheme (PSDS) Phase 4 delivery programme and associated financial commitments to enable decarbonisation works across five key sites in the borough. The report pack stated that the London Borough of Richmond has been awarded £7 million following technical assessments, with the projects expected to be delivered over three years. The council's contribution was estimated to be circa £1.9 million.

Proposed projects across the selected sites included roof and wall insulation, heat recovery, internal heating pipework insulation, non-remotely managed building energy management systems (BEMS), air-source heat pumps, and solar PV installations. The sites included Teddington Pools, Briar House, Sheen Lane Library, Orleans House Gallery and Pools on the Park.

The report pack stated that the PSDS 4 project programme is expected to have a significant impact on Richmond's trajectory toward becoming carbon neutral by 2030 and achieving net zero by 2043, with projects across the targeted sites projected to reduce annual carbon emissions by 951 tCO₂e and cut energy use by 82% among said sites.

The Demolition of Buildings and Operation of the Former Clarendon School Site – Hanworth Road

The committee was scheduled to discuss proposals for the future use of the former Clarendon School site on Hanworth Road in Hampton. The report pack stated that the Council's long-term ambition for the site had been to use it to co-locate Carlisle Infant School and Hampton Hill Junior School, but that with no funding available for new schools, the Council had to consider an alternative strategy for the property.

The report pack stated that the Council has an increasing need for housing to serve people and families on its housing waiting list, and that the property is considered to be suitable for the development of affordable housing. The committee was asked to approve additional capital budget totalling £525,000 in 2025/26 for the demolition of the existing buildings.

Richmond Growth Plan

The committee was scheduled to discuss the proposed development of a growth plan for the borough, sitting in the context of recent Government, London and South London growth policies and strategies. The report pack stated that the Council strongly believes that a clear growth vision and plan is a vital driver, ensuring Richmond continues in its role of a leading growth borough and one that can set the agenda for London.

The report pack proposed to focus the borough Growth Plan around four core aims:

• Greater inward investment and a boost in productivity
• Increased incomes for residents, especially lower income households
• Matching workforce talent with employer and business needs
• A go-to destination for businesses to start, innovate and scale up

Accommodation BID

The committee was scheduled to discuss supporting a business-led approach to taking forward the borough's visitor economy. The report pack set out the potential role of an Accommodation Business Improvement District (ABID) in providing more resources, drawing on experience from other parts of the country.

The report pack stated that an ABID is a model of raising business funding for the tourism sector that has been successfully established in other parts of the country, where accommodation providers within a defined area collectively invest in projects and services that enhance the overall visitor experience, benefitting their businesses through increased overnight stays. This is funded through a modest, supplementary charge per room/unit per night for qualifying businesses. The committee was asked to agree to work with businesses to support development of an ABID proposal and report back to a later meeting of the committee.

Corporate Q1 Quarterly Monitoring Report

The committee was scheduled to receive the Corporate Q1 Quarterly Monitoring Report, providing an overview of revenue and capital budget management and summarising actions being taken where appropriate. The report pack stated that the Council is currently projecting a General Fund overspend of £2.8 million, largely due to continuing pressures in homelessness costs.

Treasury Management Annual Report 2024/25

The committee was scheduled to receive the Treasury Management Annual Report for 2024/25, including analysis of the actual performance against the Prudential Indicators for 2024/25. The report pack stated that the Treasury Management operation includes the management of cash flows, borrowing and investments, the management of the associated risks and the pursuit of the optimum performance or return consistent with those risks.

Additional Budget Requests

The committee was scheduled to consider a report requesting funding approval of the budget requests listed. The report pack requested approval for:

• £2,000,000 for the Capital Programme Review, funded by a DfE Grant.
• £525,000 for the Demolition of buildings and operation of the former Clarendon School site – Hanworth Road, funded by capital resources/borrowing.
• £1,000,000 for the Public Sector Decarbonisation Scheme Phase 4 Award, funded by a Salix Grant.

Commercial Cleaning and Associated Services Contract

The committee was scheduled to discuss a report seeking approval to appoint the successful bidder from the recently concluded procurement exercise for Commercial Cleaning and Associated Services to council managed operational buildings. The report pack stated that tenders were evaluated on the basis of 60% price, 30% Quality and 10% Social Value, and that the contract will be managed using a performance/output specification and will deliver a cleaning service to fifty-five (55) Richmond properties that are in scope.

Committee Work Programme

The committee was scheduled to consider the Work Programme for the Committee.