The General Purposes and Audit Committee of Bexley Council met on Wednesday, 28 January 2026, to discuss a range of financial and operational matters. Key topics included the proposed stopping up of highway land in Erith, the Council's Pay Policy Statement for 2026/27, and a half-yearly report on Treasury Management for 2025/26. The committee was also scheduled to review the calculation of the Council Tax base and Business Rates income for 2026/27, alongside draft audit reports for the Council's and the Pension Fund's 2024/25 statements of accounts. Updates on Internal Audit, Counter Fraud activity, and Risk Management were also on the agenda.

Stopping Up Of Highway Land - Bexley Road Cul-De-Sac, Erith

The committee was scheduled to consider a request from BexleyCo to stop up highway rights over the Bexley Road cul-de-sac in Erith. This action is necessary to facilitate the development of 33 residential dwellings and commercial floorspace, following the partial demolition of The Old Post Office. The report indicated that the land to be stopped up was part of Bexley Road before its realignment in the 1970s, and a previous stopping up procedure from 1972 was not implemented. The proposal aims to ensure no adverse impact on the public, with a footway remaining to retain pedestrian access between Bexley Road and Erith High Street. The applicant, BexleyCo, would cover the costs associated with processing this application, with an initial sum of £4,000 paid.

Pay Policy Statement 2026/7

A key item for discussion was the Council's Pay Policy Statement for 2026/7, as required by the Localism Act 2011. The report recommended the approval and publication of this statement, which outlines policies on the remuneration of senior executives, lowest-paid employees, and the relationship between these two groups. An amendment to the Pay Policy Statement was noted regarding a correction to the Pay Ratio as at 31 March 2024, which was previously published as 5.2 to 1 but the correct figure was also 5.4 to 1. The Council's recognised trade unions had been consulted on the proposed statement.

Treasury Management Half Yearly Report 2025/26

The committee was to receive a six-month review of the Treasury Management Strategy for 2025/26, in accordance with the CIPFA Code of Practice. The report detailed economic updates, including a decrease in the Bank Rate by 0.25% to 3.75% in December 2025, and forecasts for PWLB rates to be lower across all maturities. The Council's investments as at 30 September 2025 were summarised, showing a total of £33.265m invested, with an average weighted return of 4.16%. The report also outlined the Council's borrowing position as at 30 September 2025, which stood at £227.599m, consisting solely of Public Works Loan Board fixed long-term loans at an average rate of 3.36%.

Calculation of Council Tax Base for 2026/27

The committee was asked to approve the Council Tax Base for 2026/27, which is a measure of the taxable resources of the area. The calculated Council Tax Base for the year was 86,535.1 Band D equivalents. Two additional calculations were required for areas within the Borough covered by the Southern and Thames Regional Flood and Coastal Committees of the Environment Agency, resulting in tax bases of 50,060.6 and 36,474.5 Band D equivalents respectively. The estimated yield for 2026/27, based on a collection rate of 98.50%, was £152.964m, an increase of £2.345m from 2025/26.

Calculation of Business Rates Income 2026/27

A provisional calculation of business rates income for 2026/27 was presented for approval. The report highlighted three significant changes for 2026/27: the first reset of the business rates baseline since 2013 as part of the Fair Funding Review, the revaluation of rateable values by the Valuation Agency Office in March 2026, and the introduction of new business rates multipliers for the retail, hospitality, and leisure (RHL) sector and a high-value multiplier (HVM) for large properties. Bexley is a top-up authority, and the value of this top-up was expected to be £7.711m, a reduction of £7.478m compared to 2025/26.

Draft Audit Results Report for the London Borough of Bexley's 2024/25 Statement of Accounts

Ernst & Young LLP (EY) presented their Draft Audit Results Report for the audit of the Council's 2024/25 accounts. The report detailed findings related to audit emphasis areas, accounting policies, judgements, and material internal control findings. EY's Value for Money risk assessment indicated that the Council had made 'proper arrangements' to secure economy, efficiency, and effectiveness in its use of resources. The committee was recommended to approve the accounts and delegate the signing to the Director of Finance and Corporate Services, subject to no significant issues arising from the remainder of the audit. The draft opinion in the report was a Disclaimer Opinion, which was anticipated following the decision not to audit the 2022/23 accounts.

Draft Audit Results Report for Bexley Pension Fund's 2024/25 Statement of Accounts

Similarly, EY presented their Draft Audit Results Report for the audit of the Bexley Pension Fund's 2024/25 accounts. The report contained findings related to audit emphasis areas, accounting policies, judgements, and material internal control findings. The audit work was substantially complete, with outstanding items relating to the finalisation of procedures. The committee was recommended to approve the accounts and delegate the signing to the Director of Finance and Corporate Services, subject to no significant issues arising from the remainder of the audit. Uncorrected audit differences identified amounted to £5.5 million, relating to the valuation of Level 3 investment assets, which management chose not to correct due to materiality.

Internal Audit & Counter Fraud Progress Reports Q3 2025/26

An update on internal audit activity was provided, covering the finalisation of the 2024/25 plan and the continuation of the 2025/26 plan. One additional audit was added to the 2025/26 plan concerning the Learning & Enterprise College Bexley (LECB) and contract arrangements. The report also detailed counter fraud activity, including the submission of National Fraud Initiative data, ongoing investigations into Blue Badge frauds, and the promotion of Fraud Awareness Week. Bexley Council had signed up to the Fraud Hub for an initial period of one year.

Risk Management Update

The committee received an update on how risk is managed at Bexley Council. A fundamental review of Bexley's risks was undertaken in December 2025 with the Corporate Leadership Team and Head of Assurance, facilitated by insurance experts Zurich. This exercise aimed to reset the strategic risks for Bexley. A revised strategic risk register and a revised Risk Management Policy were in development and were anticipated to be presented to the committee in March 2026. The medium to longer-term vision for risk management includes embedding a consistent approach across the Council and regular reviews of risk registers. A further workshop with CLT was planned for the summer to discuss risk appetite and enhance the Council's risk maturity.

The meeting also included standard agenda items such as apologies for absence, minutes of the previous meeting, and declarations of interest. Items of late business were also scheduled for consideration if deemed urgent by the Chair. The date of the next meeting was set for 26 March 2026.