The Public Accounts Select Committee met on Tuesday 10 March 2026 to review the council's financial performance for Period 9, discuss the IT and Digital Programme, and reflect on the committee's work over the past four years. Key decisions included noting the Period 9 financial monitoring report, which indicated a £0.7 million overspend primarily in Children's and Young People's Services, and approving the IT and Digital Programme Update report. The committee also reviewed its past scrutiny activities and made suggestions for the incoming committee's work programme.

Period 9 Monthly Monitoring

The committee received a comprehensive update on the council's financial position at Period 9. Ruth Hodson, Interim Head of Service Finance, presented the report, highlighting a £0.7 million overspend on the General Fund, largely attributed to increased demand in Children's and Young People's Services. This represents a worsening of £2.2 million since Period 8. The Dedicated Schools Grant (DSG) also showed a projected overspend of £4.1 million in the High Needs Block, an increase of £1.6 million since Period 8, partly due to a London-wide trend of increased applications for Education, Health and Care Plans (EHCPs) before anticipated legislative changes. The Housing Revenue Account (HRA) reported a small overspend of £0.1 million.

Significant discussion focused on the overspend within Children's and Young People's Services, particularly in Family Help and Care. Councillor James Rathbone, Chair of the Committee, sought clarification on whether the deterioration was due to new spending or the accurate recording of existing expenditure. Ruth Hodson explained that while there were some historical costs coming to light, there were also 21 new starters and significant changes in care packages contributing to the pressure. The report detailed a 15-month delay in Ofsted registering the council's in-house residential care provision, which had cost over £700,000. Catherine Nidd provided further insight, explaining that Ofsted inspections require the entire model to be fully operational, creating a chicken and egg situation. However, later in the meeting, it was confirmed that Ofsted had signed off the registration, attributing the delay to a backlog.

Councillor Chris Barnham raised concerns about the escalating deficit in the Dedicated Schools Grant's High Needs Block, noting it had increased from £3 million to £4 million. He also inquired about the government's commitment to writing off 90% of accumulated debt. Katharine Nidd, Director of Finance, confirmed that the council was confident in the accuracy of its deficit figures and would be applying for the write-off. She cautioned, however, that the council would still be responsible for any deficits incurred in the next two financial years before further reforms take effect.

Councillor Hau-Yu Tam raised concerns about the equalities impact of budget cuts, particularly on vulnerable communities. Catherine Nidd detailed the council's robust equalities framework, including screening assessments for savings proposals, cumulative assessments for the budget, and annual equalities action plans for each service.

Councillor Susan Wise expressed reassurance regarding improvements in temporary accommodation and the HRA reserves. However, she raised concerns about slippages in the Building for Lewisham programme. Catherine Nidd explained that market contractions, increased costs, and the need for procurement flexibility had led to delays, but that the council was actively seeking grant funding and strategic partnerships to mitigate these issues.

IT & Digital Programme Update

Wendy Carr, Director of IT & Digital, presented an update on the IT and Digital Programme, highlighting progress in strengthening governance through the establishment of Directorate IT Boards and a standardised project request process. She noted that there are currently 85 active IT and Digital projects across six directorates, with most rated as green or amber. Key programmes include the Windows 11 rollout, the Housing Management System enhancements, and the procurement of new social care case management systems. Carr acknowledged ongoing challenges with earlier notification of project requirements and resourcing, particularly in attracting and retaining IT security staff.

Councillors John Paschoud and Joan Millbank requested more detailed information on specific projects, including timelines, overall costs, and tangible examples of improvements to public-facing systems. Wendy Carr provided examples such as a new system for bin collections, a live housing portal, and online services for birth, death, and marriage certificates. She explained that the council uses a hybrid approach, building some systems in-house and purchasing others, often with customisation. The committee agreed that future reports should include more illustrative examples and metrics to better demonstrate project progress and impact.

Review of PASC Scrutiny Activity and Change Work 2022-26

David Austin, Executive Director for Finance, Digital and Corporate Resources, provided a review of the Public Accounts Select Committee's (PASC) scrutiny activity and change work from 2022 to 2026. He confirmed that the committee had fulfilled its terms of reference, covering regular financial monitoring, budget setting, and focused reviews on key risk areas such as Children's Social Care finances, capital programme management, social value, temporary accommodation, and the Housing Revenue Account. Austin highlighted the committee's role in scrutinising the council's financial plans and making recommendations to Mayor and Cabinet.

Councillors praised the accessibility of the reports and the frankness of the officers. Councillor Joan Millbank specifically commended the focus on social value and cross-sector working. Councillor Chris Barnham reflected on the committee's focus on Children's Social Care finances, noting that while challenging at the time, it had led to a clearer understanding of the issues and contributed to national lobbying efforts that resulted in government action on profiteering in the private placements market. He also defended the committee's work on council tax collection, emphasizing the importance of pursuing tax evasion to fund essential services.

End of Administration Work Programme Report

Jeffery Lin, Committee and Scrutiny Officer, presented the final report on the committee's work programme for the 2022-26 administration. The report outlined the completed work programmes and invited suggestions for the incoming committee. Councillor James Rathbone announced his intention not to chair the committee in the next administration, having served for four years, and expressed his willingness to advise the new chair. The committee thanked Rathbone for his leadership. Suggestions for the incoming committee's work programme included a continued focus on the financial implications of the IT and Digital Programme, the impact of national legislation on local services, and ongoing scrutiny of the council's financial health.