The Audit and Performance Committee of Westminster City Council is scheduled to meet on 24 November 2025 to discuss the council's financial and performance monitoring reports for the second quarter of the financial year, along with updates on temporary accommodation, internal audits, counter-fraud measures, and treasury management. The committee will also be asked to shape its work programme for the remainder of the municipal year.

Q2 Performance Report

The committee will be asked to note the Q2 Performance Report 2025/26, which provides an overview of the council's performance against key performance indicators (KPIs).

The report indicates that, of the 100 reported KPIs:

• 74% are on track to meet year-end targets
• 20% are at slight risk of missing targets
• 4% are currently off-track
• 2% do not have set targets

The report also highlights some specific areas of performance:

• Adult Social Care & Public Health: The Public Health team successfully re-procured the Children and Young People (CYP) Health and Wellbeing Service, with a renewed focus on reducing long-term harms associated with substance misuse.
• Children's Services: Provisional summer 2025 GCSE and A-level results for students in Westminster indicate a highly positive performance. Additionally, a new specialist resourced provision (SRP) has opened at Pimlico Primary Academy. The Young Dragons pilot will continue in five schools across the borough during autumn 2025.
• Corporate Services: Westminster has been rated 'excellent' for employment under the Good Work Standard¹.
• Environment and Communities: Successful clean-up operation after the Notting Hill Carnival². A hotel operator was successfully prosecuted for health and safety breaches. Trading Standards officers led a targeted enforcement project across Soho and wider Westminster, seizing counterfeit goods and illicit tobacco. The Community Development team delivered residential trips to Sayers Croft. The Cool Neighbourhoods Strategy was launched.
• Finance & Resources: The Connected London pilot was a runner-up for the Wireless Broadband Alliance Industry Awards. A new booking platform has launched for the Westminster Registration Service. Clean Air Routes London was formally launched.
• Housing and Commercial Partnerships: Several Westminster City Council Housing Estates have retained their Green Flag accreditation³. The council received notification of its first successful Building Safety Case, with a Building Assessment Certificate issued for Luxborough Tower. The council held its annual Leasehold Conference at Porchester Hall. A dedicated Leasehold Task and Finish Group was convened. The council's retrofit programme continues to make strong progress.
• Regeneration, Economy and Planning: Westminster's third Social Value Impact Report has been finalised. The Economy & Skills team delivered the Education, Employment and Skills Board virtual Skills Summit. Westminster City Council has secured a £60 million grant from the Greater London Authority (GLA) for Church Street Site A.

The report also identifies current risks facing council services:

• Adult Social Care & Public Health: Changes to police mental health support structures.
• Children's Services: Continuing high-cost placements and social care reform implementation.
• Housing and Commercial Partnerships: Temporary Accommodation pressure and strategic response.
• Regeneration, Economy and Planning: Building Control.

The report also includes the council's risk register. The top corporate risks are:

• Risk of failing to meet climate change and net-zero targets.
• Risk to the council's financial sustainability.
• Risk to effective safeguarding services.
• Risk of inadequate preparedness for major incidents.

Q2 Finance Monitor 2025-26

The committee will be asked to monitor the City Council's financial position, including revenue forecast outturn, revenue expenditure including key risks and opportunities, capital expenditure and HRA revenue and capital expenditure and reserves, based on the Q2 Finance Monitor 2025-26.

The report will state that the forecast General Fund revenue outturn is a projected overspend of £4.634m, a reduction of £3.154m from the Q1 forecast. The main reasons for the overspend are increased demand and cost of temporary accommodation, and increased children's social care costs. The Housing Revenue Account is forecasting an overspend of £2.1m.

The report will also state that the Q2 Capital Programme is forecasting a £72.504m gross expenditure variance position, and that at the end of Q2 the forecast expenditure for the HRA capital programme is £242.759m, resulting in an underspend of £27.164m.

The 2025/26 budget included £31.925m of savings; 98.50% of total savings are either achieved or on target to be achieved in year. The forecast reserve balance at year-end is £276.586m.

Treasury Management Strategy Mid-Year Review 2025-26

The committee will be asked to review the Treasury Management Strategy at mid-year, based on the Treasury Management Strategy Mid-Year Review 2025-26 report.

The report will state that as at 30 September 2025, the net cash position was £38.7m, an increase of £148.0m on the position at 31 March 2025. The average level of funds available for investment in the first six months of 2025/26 was £704.8m, and the council's average return on the portfolio as at 30 September 2025 was 4.39%. The council's budgeted investment return for 2025/26 is £28.5m, and performance for the year is expected to be £1.3m above budget.

The report will also state that the council's borrowing was well within the Prudential Indicator for external borrowing, and that during 2025/26, the council maintained an under-borrowed position of £1,406m. In July 2025, Moody's reaffirmed the council's credit rating of Aa3, stable.

Temporary Accommodation

The committee will be asked to receive an update on Temporary Accommodation (TA), based on the Audit and Performance - Provision and Management of TA report.

The report will state that Westminster has seen a 76% increase in homeless applications since 2022, leading to a 56% increase in the requirement for TA from 2,821 to 4,416. The main factors that contribute to the demand are high rent levels, limited social housing, the impact of welfare reforms, and the increase in homelessness due to the cost-of-living crisis.

The report will also state that the council is facing significant challenges and costs in providing TA and supporting the households to move on to permanent housing, and that the provision of TA is a significant financial risk for the council.

The report will set out the council's plan to address the TA pressures, which consists of the following main actions:

• Negotiating a reduction and full exit from remaining high-cost properties in a phased reduction by 2028.
• Directly purchasing properties for use as TA.
• Delivering additional properties through longer-term leasing arrangements.
• Increasing the supply of suitable properties by working with private landlords, Registered Providers, and other partners.
• Reducing the demand for TA by preventing homelessness and supporting households to access advice and support earlier in the process.
• Reducing the cost and length of stay in TA by managing the placements and allocations more efficiently and effectively.

The report will also provide an overview of the statutory duties of WCC to provide TA, the pressures from increasing demand and challenges in identifying and securing supply, the financial cost pressures to WCC, and the plans to mitigate the impact of this.

Internal Audit Progress Report

The committee will be asked to oversee and monitor the success of the Audit Service in planning and delivering outcomes and establishing an effective and robust internal control framework, based on the WCC AP - IA Progress Report - November 2025.

The report will summarise the status of the work included in the 2025/26 Internal Audit Plan up to the end of September 2025. Five audits have been finalised and all received a positive assurance opinion. Two further audits have been issued in draft and will be finalised on receipt of the management responses.

Six follow-up reviews have been completed in the period, which confirmed that 46 (92%) of the recommendations made had been fully implemented, with four (8%) not fully implemented.

Mid-Year Counter Fraud Report

The committee will be asked to oversee and monitor the success of the Counter Fraud Service, based on the WCC Counter Fraud Half Year Report 25 26.

The report will detail fraud-related activity by the Corporate Anti-Fraud Service (CAFS) from 1 April to 30 September 2025, aimed at minimising fraud, bribery, and corruption against the council.

Between 1 April 2025 and 30 September 2025, the council processed 101 new referrals and concluded 174 investigations. The 82 positive outcomes identified have prevented fraud worth an estimated £693,499 and identified a notional loss of £318,402. An additional £69,443 was identified for recovery via court-issued unlawful profit orders.

The report will also state that since 1 April 2025, CAFS has not received any new fraud referrals via the council's whistleblowing policy, but staff continue to consistently report potential fraud through other means, such as the CAFS hotline or investigation mailbox.

Work Programme

The committee will be asked to discuss any matters arising from the previous meeting, including new or unresolved matters, and shape the committee's work programme for the municipal year 2026/2027, based on the APC Work Programme Report - 24 November 2025. The report requests that the committee considers the Work Programme for the 2025/26 municipal year attached at APC Work Programme - Appendix 1 - 2025-26 Work Programme and to confirm the agenda items for its next meeting on 24 February 2026.

The following items are scheduled for the meeting on 24 February 2026:

• Q3 Performance Report
• Q3 Finance Monitor
• External Audit Plan
• Internal Audit Progress Report
• Internal Audit Plan 2026/27
• Ethical Standards Report
• Matters Arising and Work Programme 2025/2026