The meeting included discussion of a variety of topics, including the adoption of a new Economic Development Strategy for Lewisham, procurement of a new framework for the provision of supported living services, a review of the Sustainable Streets schemes that have been implemented in Catford and Crofton Park and how to reduce the budget gap for 2025/26.

Economic Development Strategy Adoption

A report was included for consideration, that proposed the adoption of a new five-year Economic Development Strategy. The new strategy, called [Inclusive Economy Lewisham](https://councilmeetings.lewisham.gov.uk/documents/s117509/Inclusive+Economy+Lewisham_Corporate+Report_MC+Dec_24_FINAL.pdf), aims to support inclusive growth in Lewisham, particularly in four key themes:

• Enterprise– Bring businesses and education institutions to Lewisham and help them grow and prosper.

• Decarbonisation – meet the challenges and opportunities of transitioning into a greener economy.

• Young People – equip young people with the skills and confidence to contribute to and eventually lead the economy.

• Prosperity – provide the services, amenities and quality economic opportunities people need to thrive.

The report included a draft of the strategy, which included discussion of a number of ambitions for the Lewisham economy, and proposed a number of actions for the Council to take over the next five years, to help meet the aims of the strategy. The report also included a recommendation that the Executive Director for Place be delegated authority to oversee the delivery and implementation of the strategy.

The Overview and Scrutiny Committee discussed the evidence base for the new strategy in July 2024. In November, the Executive Director for Place published his response to the Committee's comments.

Framework Agreement for Provision of Services for Adults with Disabilities & Extension of Contracts

A report was included for discussion, that asked the Mayor and Cabinet to approve a new Framework Agreement for provision of supported living services for adults with learning disabilities.

The report explained that Lewisham Council is required to commission services for adults with learning disabilities under the Care Act (2014), and that this new Framework Agreement will help the Council to shape the local market and make sure that providers focus on supporting their tenants to progress and develop their independence. The report proposes procuring this Framework using an open tender process, with awarded contracts to be managed through a robust contract management process, that will focus on the achievement of outcomes for service users and the sustainability of services.

The report also proposed that 22 existing supported living contracts, worth a combined total of £13,773,981.10 be extended by varying lengths of time. The report explained that these extensions are required to ensure continuity of service for residents, whilst the new Framework Agreement is being procured.

Catford and Crofton Park Review and Revised Sustainable Streets Programme

A report included for discussion asked the Mayor and Cabinet to approve a revised Sustainable Streets Programme.

The report explained that the initial phase of the Sustainable Streets Programme, covering Deptford, Catford and Crofton Park was launched in January 2023. The report explained the statutory process for implementation of the scheme, which included a statutory consultation conducted in August 2023, which showed general support for the proposals. It further explained that the Director for Public Realm approved the implementation of the scheme in September 2023, and that it launched in January 2024.

The report explained that in July 2024 a further consultation took place to gather feedback and monitor performance six months after the programme’s implementation. The report contained an analysis of the consultation feedback received, which concluded that in the Honor Oak area, the scheme had been a success.

The report recommended the expansion of the Controlled Parking Zone in Honor Oak to include Tatnell Road, Lessing Street, Grierson Road, Gabriel Street, Honor Oak Park, and Riseldine Road. The report suggested that this expansion was necessary to avoid parking displacement, as many respondents from the newly proposed streets had indicated that if a CPZ was implemented on a street next to theirs, they would also want it implemented on their own street to avoid commuters parking there.

The report also recommended changing the Council’s existing Parking Policy to facilitate the conversion of all limited waiting bays to short-term pay to park parking bays, to ensure a regular turnover of these parking bays and reduce inconsiderate parking behaviours.

The report further recommended the introduction of a multi-vehicle ownership levy for all variants of resident permit holders, which would see the price of permits increase by 33% from the second vehicle registered per account holder.

Finally, the report outlined a revised programme for the continued implementation of the Sustainable Streets programme across the borough. The report proposed that consultation and implementation of new Sustainable Streets would be completed in three phases by Summer 2025, and that all existing CPZs be reviewed with additional Sustainable Streets measures introduced in line with public demand.

Setting the Council Tax Base 2025/26

A report was included for discussion that proposed setting the Council Tax base at 92,585.3 Band D equivalent properties for 2025/26.

The report explained that the Council Tax base is a statutory calculation, defined as the number of Band D equivalent properties in the borough, and that this figure is used in calculating the Council Tax, which is then formally set at the budget setting meeting in March 2025.

The report explained that the calculation has been prepared in accordance with the regulations Local Authorities (Calculation of Council Tax Base) Regulations 2012, which specify the formula for this calculation. The report set out in detail how this formula is applied, showing how the number of dwellings in each of the eight Council Tax bands is converted to an equivalent number of Band D properties. It further explained how discounts awarded to residents, such as the Single Person Discount, are taken into account in this calculation, as well as the impact of schemes for empty properties and second homes.

The report recommended making no changes to the Council Tax Reduction Scheme in 2025/26, retaining the 25% minimum contribution from eligible claimants. It further recommended continuing with the Council’s existing discounts for care leavers and residents who provide accommodation for refugees.

Period 6 Budget Monitoring

A report included for consideration proposed that the Executive Management Team continue to work to bring forward cost reduction measures to address the projected overspend in the Council’s General Fund.

The report set out that the General Fund currently has a forecast overspend of £22.3m for 2024/25, after the application of a number of mitigating measures, including the use of £4.2m of corporate provisions and reserves, £1m of Adult Social Care provisions, and £5m of over-achieved income from interest earned.

The report explained that the main causes of the overspend are Children’s Social Care, Adult Social Care, and Temporary Accommodation. Each of these areas of overspend were then discussed in more detail, highlighting the key cost drivers for the financial pressure. The report set out that for Children’s Social Care, the overspend was due to an increase in demand for high cost external placements. For Adult Social Care, the key drivers were increasing costs associated with homecare packages. For Temporary Accommodation, the overspend was largely attributed to an increase in the use of nightly-paid accommodation, primarily as a result of a 364-person increase in the number of residents in temporary accommodation between March 2024 and September 2024.

The report explained that since the publication of the Period 4 budget monitoring report, which projected a year-end overspend of £27.4m, a number of cost-reduction and efficiency measures had been implemented, leading to a £5.1m improvement in the projected outturn position. It further explained that an additional £5.6m of cost reduction measures are currently being worked on.

The report concluded with a summary of potential risks for the remainder of the year, including factors like rising interest rates, inflationary costs, and potential changes to national policy and legislation.

Savings and Overspend Reduction Measures for 24/25 Pressures and 25/26 Budget Gap

The Council's 2025/26 Budget Reduction Process was included for discussion in a report that proposed the adoption of a number of savings and cost reduction measures to address the council’s budget gap.

The report explained that the Medium Term Financial Strategy, which was approved in July 2024, identified a budget gap of £20m over four years, and that the Council is now aiming to identify savings proposals to address this gap. The report explained the process for identification of these savings proposals, including engagement with individual service areas, completion of service proformas detailing their proposals, and allocation of savings targets across the directorates proportionate to their relevant net budgets.

The report then set out that this process has resulted in the identification of £4,739,000 of permanent savings to be implemented between 2024/25 and 2026/27, which is significantly less than the £20m savings target. It further noted that in addition to these proposed base budget reductions, a number of recurring cost avoidance proposals had also been identified that, if fully implemented, would reduce the Council’s projected overspend by £21,723,000 in 2024/25. However, this is less than the £31.5m savings target originally identified, and the £36.6m overspend currently projected.

The report explained the implications of this shortfall for the budget-setting process in 2025/26, setting out that the Council would need to use reserves to set a balanced budget for 2025/26, and that a further £25.038m of budget savings would need to be identified. It further explained that there are a number of proposals included in Appendices 2a, 2b, 3a, and 3b, for which a decision is required from the Mayor and Cabinet, and set out the options for each decision. These decisions include:

• Reduction in employers' pension contributions. The report noted that the Council's actuaries have advised that a reduction in the employer’s pension contribution rate from 22% to 21.5% could be applied, delivering a £650,000 saving for the General Fund and a £100,000 saving for the Housing Revenue Account. It noted that there are minimal risks associated with this proposal.
• Increase fees and charges applied by Home Ownership Service. The report explained that the income generated from the sale of pre-assignment and re-mortgage packs to leaseholders could be increased by 38%, delivering an annual saving of £19,620 for the Housing Revenue Account.
• Parking Services - Additional Yellow Box Junction Enforcement & Moving Traffic Contravention by CCTV. This proposal, which was agreed in December 2022, would see the introduction of 10 additional Yellow Box Junctions and 5 additional Moving Traffic Contraventions in the borough. The report explained that these changes would deliver a combined annual income of £105,000 for the General Fund, but noted that this figure would be dependant on the service being able to meet the revenue demand to make the budget in the 2022/23 financial year.
• EV Charging Points / Stations. This proposal would see the introduction of 250 EV charging points on Housing Revenue Account land across the borough in 2025/26. It noted that, if approved, these chargers could generate £25,000 in 2025/26, with this figure potentially doubling the following year.
• Ending the Funding for the Council run Assembly Programme. This proposal, which was discussed at length by the Overview and Scrutiny Committee, suggested a restructure of the Community Services team and removal of the Assemblies Programme, to generate an annual saving of £203,025. The report explained that whilst Assemblies are a commitment in the Council’s Constitution, they are not currently achieving the desired level of engagement. It further explained that alternative approaches to community development and engagement will be considered.
• Reduced Leisure Concessions. This proposal would see an increase in the price paid by residents with concessionary memberships of the Council's Leisure Centres, including those with GP referrals and people over 60. The report noted that increasing the price by 10% could deliver an annual saving of £80,000 for the General Fund, but also explained that this may have a negative impact on participation, particularly for older people. It also noted that an increase in pay and play concessions pricing would be required.

Re-Procurement and Award of the Primary Care Recovery Service (Adult Substance Misuse Service)

A report was included that proposed that the contract for the Primary Care Recovery Service be awarded to the Humankind Charity, under the Health Care Services (Provider Selection Regime) Regulations 2023 (PSR). The report set out that the contract would run for two years at a total cost of £1,612,706.

The report explained that the existing contract for the Primary Care Recovery Service expires at the end of March 2025 and that the contract provides advice and treatment options for people in Lewisham whose drug and/or alcohol use is considered to be stable enough to receive services via General Practice. The report explained that the current provider is Humankind Charity and that the service is provided in partnership with GPs and pharmacists.

The report further explained that a review of the service was undertaken, and that it was considered that the existing provider should be directly awarded a new two-year contract. The report noted that this decision aligns to OHID vision and funding requirements and that a two-year extension would allow for a more comprehensive review of the treatment services within Lewisham for 2027 onwards.

Building for Lewisham: Small and Complex Sites

This report considered a range of options for bringing forward eight small sites for the development of new homes. It asked the Mayor and Cabinet to declare the eight sites surplus to requirements and approve their advertisement on the GLA Small Sites Small Builders portal.

The report explained that in October 2021, the Council adopted a Small Sites Supplementary Planning Document, and that a pipeline of over 200 potential development sites were subsequently identified. The report set out that twenty of these sites have now been progressed in more detail, with the eight sites included in this report deemed to be most appropriate for disposal. The report included a table with brief details of each of the eight sites, noting that seven of these sites are currently garages.

The report recommended the advertising of the sites via the GLA's portal on the basis that the Council is receiving grant funding from the GLA to cover the cost of site identification and due diligence, and that this grant requires the sites to be advertised by February 2025.

Building for Lewisham (BfL) - Procurement Strategy and Programme Update

A report included for discussion set out a new procurement strategy for the Building for Lewisham Programme. It asked the Mayor and Cabinet to approve the procurement of an Investment Partner for the Council's major development projects.

The report explained that due to the significant risks associated with bringing forward large-scale regeneration, and in response to the recent changes made to Right to Buy legislation, the Council are exploring new ways to deliver new homes within Lewisham. It explained that a decision has been made to procure an Investment Partner that would act as both a Main Contractor and a Developer.

The report outlined the key features of this procurement model, explaining that it is more akin to a single supplier framework. It explained how the Investment Partner would work with the Council to identify and bring forward sites, including undertaking a pre-construction services agreement and a JCT form of Design and Build contract. The report noted that the two key schemes currently being considered for this model are Achilles Street Regeneration Phase 1 and Thomas Lane Yard.

Appointment of Director for Lewisham Homes

A report included for consideration proposed the appointment of Sandra Gray, Commercial Accountant for Lewisham Council, as a Director of Lewisham Homes Limited.

The report explained that the current governance arrangements for the company require two appointed Directors and that the current Director, Simon Williams, will be leaving the council’s employment in December 2024.

The report explained that the work of Lewisham Homes Limited, which is wholly owned by Lewisham Council, is directed by an annual business plan agreed by the Mayor and Cabinet. The report explained Sandra Gray's extensive commercial and housing experience in previous roles and so recommended her appointment as a Director.

Permission to Procure a new Framework Agreement for Provision of Services for Adults with Disabilities & Extension of Contracts PART 2

This discussion was scheduled to take place in private.

Re-procurement and Award of the Primary Care Recovery Service (Adult Substance Misuse Service) PART 2

This discussion was scheduled to take place in private.

Procurement of Civil Enforcement Services

A report was included for consideration that proposed the awarding of a contract for the provision of Civil Enforcement Services to Marston Holdings Ltd for five years.

The report explained that Lewisham Council has a statutory responsibility under the Crime and Disorder Act 1998 to work in collaboration with partners to reduce crime and disorder. It explained that an open procurement process was undertaken, with tenders issued in August 2024 and closed in September 2024. The report detailed the evaluation process used, and that based on a combination of quality, social value and price, Marston Holdings Ltd had been identified as the preferred provider.

The report set out that the approximate annual cost of the contract is £5.4m, with the total cost anticipated to reach £60m over the lifetime of the contract after taking into account any additional expenditure. It further explained how any net income generated would be reinvested in transport related activities in compliance with Section 55 of the Road Traffic Regulation Act 1984.

Procurement of Civil Enforcement Services PART 2

This discussion was scheduled to take place in private.

Building for Lewisham (BfL) - Procurement Strategy and Programme Update PART 2

This discussion was scheduled to take place in private.

The Change of Use of Open Space Adjacent to Watergate School to Enable the Construction of a New School Building

This report asked the Mayor and Cabinet to approve the change of use of Open Space to accommodate a new school building.

The report explained that Watergate School caters for primary school aged children with Special Educational Needs and Disabilities (SEND) and that approval had previously been given to expand the school to increase capacity from 108 to 186 pupils. The report set out that the existing Dumps Adventure Playground is located on the site for the new school building, but that as part of the expansion project this will be relocated to an underused playing field next to the school.

The report explained the statutory process for changing the use of Open Space, noting that no representations or objections to the proposal had been received during the consultation period, and so recommended the change of use be approved.