The Overview and Scrutiny Committee was scheduled to consider a wide-ranging set of topics. These included the council’s financial position in the light of the latest Autumn Statement, proposals for major works at the Consort Estate in Peckham, and the implications of a recent judgement by the Regulator of Social Housing¹.

The Regulator of Social Housing is a non-departmental public body that regulates social housing providers in England. It is sponsored by the Department for Levelling Up, Housing and Communities.

The council’s financial position for 2025/26 and 2026/27

The Overview and Scrutiny Committee was scheduled to receive a report, Policy and Resources: Budget Setting Update 2025-26, that detailed a number of new funding proposals in the light of the Chancellor’s Autumn Statement² and the council’s Medium Term Financial Strategy³ agreed at the February 2024 Council Assembly meeting.

The Autumn Statement is an annual statement made by the Chancellor of the Exchequer to the House of Commons about the state of the UK economy. It usually includes announcements about changes to government spending and taxation. A Medium Term Financial Strategy (MTFS) is a plan that sets out how a local authority will manage its finances over a period of three to five years. The MTFS must be approved by the full council.

The report sets out details of the council’s anticipated funding position over the next three years. Overall, it indicates that central government funding to Southwark Council is projected to increase by £7.1m in 2025-26. However, this will still leave a budget gap of £4.12m in 2025-26 and £8.19m the following year.

The report sets out a number of commitments that will put further pressure on the council’s finances in the short term, including the cost of the Freedom Pass⁴ for older and disabled Londoners which is forecast to increase by £2.3m to £14.3m in 2025/26. It is proposed that these costs and the shortfall in government funding will be mitigated by a number of efficiency savings and income generating proposals.

The Freedom Pass is a travel pass that gives older and disabled Londoners free travel on most public transport in London.

The new government have changed direction with a promise of no return to austerity. The revised funding position in this report, has been updated following the autumn statement. Further revisions to funding levels will be made after the provisional and final settlements are announced in late December 2024 and January 2025

The report also sets out the council’s plans for reducing its reliance on its reserves over the coming years. The council used reserves to help balance the budget in previous years, but it is hoped that these will no longer be necessary in light of the increased government funding announced in the Chancellor’s Autumn Statement.

Major works at Consort Estate in Peckham

The Overview and Scrutiny Committee was scheduled to consider a report Consort Estate, SE15, Major Works - Charges to Leaseholders (Update), providing an update on planned major works at Consort Estate in Peckham, following a previous discussion at its meeting on 4 November 2024.

The report focuses on responding to concerns raised at the previous meeting by the Consort Estate Tenants and Residents Association⁵, who raised concerns about the use of ‘provisional sums’ by the council in its major works programme at Consort Estate.

Tenants and Residents Associations (TRAs) are groups of people who live on the same housing estate and who work together to improve the quality of life on the estate. TRAs are often involved in consultation with the local authority about housing issues.

Provisional sums should not be used as a fallback position for consultants when designs are incomplete, or information is difficult to obtain and should only be used as a last resort. Provisional sums were however making up 59% of the Consort Estate major works.

In response to this, Sayeed Kadir, Interim Assistant Director of Planned Maintenance, suggested that a pilot project be launched in January 2025 and that scaffolding would be erected so that a more accurate assessment could be made of the work required, in consultation with the Tenants and Residents Association.

Regulator of Social Housing judgement

The Overview and Scrutiny Committee was scheduled to consider a report, Judgement Made by the Regulator of Social Housing - Southwark’s Role as a Social Landlord, providing details of the Regulator of Social Housing’s recent judgement of Southwark Council as a social housing provider.

The report explains that the Regulator of Social Housing published its judgement on 27 November 2024 and sets out a number of failings, with a summary of the Regulator of Social Housing’s judgement included at Appendix 1 of the report pack.

The Regulator has concluded that Southwark Council has breached the Home Standard and that there were systemic failings in its approach to damp and mould. Based on the evidence gained during the investigation, the Regulator has concluded that Southwark Council needs to improve how it meets the requirements of the Home Standard. As a result, the Regulator has downgraded the organisation’s governance rating to G2 and its viability rating to V2. Southwark Council is no longer compliant with the Governance and Financial Viability Standard.

In response to the Regulator of Social Housing’s judgement, Councillor Sarah King, Cabinet Member for Council Homes, expressed that she was fully committed to improving services provided to council tenants and leaseholders and that a range of improvements had already been made, with further improvements to be made in the short to medium term.

Other matters scheduled to be discussed

The Overview and Scrutiny Committee was scheduled to discuss a number of other matters. These included updates on major works at the Canada Estate and Devon Mansions in Rotherhithe and an update on the committee’s work programme. The Committee was also scheduled to interview Councillor Sarah King about her portfolio as Cabinet Member for Council Homes.

The report, Improving Our Landlord Service, sets out a number of intended outcomes, actions, and key performance indicators for improving services provided to council tenants and leaseholders. The report states that the Housing department has a strategy to “build back better” the Housing service, which will include improving communication, being a more proactive and responsive landlord, and increasing capacity within the department.