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. The committee also reviewed calculations for Council Tax and Business Rates income for the upcoming financial year, alongside draft audit reports for both the Council's and the Pension Fund's 2024/25 statements of accounts. Updates on Internal Audit, Counter Fraud, and Risk Management activities were also scheduled for discussion.

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

The committee was scheduled to consider a request from BexleyCo to make an order to stop up highway rights over the Bexley Road cul-de-sac, adjacent to The Old Post Office at 89 Erith High Street. This action is necessary to facilitate the implementation of planning permission 25/01304/FULM, which allows for the construction of 33 residential dwellings and commercial floorspace following the partial demolition of The Old Post Office. The report indicated that the proposed stopping up would not result in any adverse impact on the public, as a footway between the area to be stopped up and open space to the north would remain, preserving a pedestrian route. Recommendations included authorising the Deputy Director of Legal and Democratic Services to prepare and advertise a draft order, and to finalise any minor variations.

Pay Policy Statement 2026/7

A key item on the agenda was the recommendation for approval of the Council's Pay Policy Statement for 2026/7, as required by the Localism Act 2011. This statement outlines the Council's policy on the remuneration of its senior executives, lowest-paid employees, and the relationship between these two groups. The report noted a correction to the Pay Ratio as at 31 March 2024, which was published in the 2025/6 Pay Policy Statement. It was also noted that the Council's policy regarding the abatement of pensions in payment upon subsequent re-employment in Local Government, which was suspended in March 2020 due to the COVID-19 pandemic, had been reviewed by the Pensions Committee in June 2025 and the existing arrangements were to be retained, meaning no abatement would be applied upon re-employment in Local Government.

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 on Treasury Management 2021. The report provided an update on economic developments since September 2025, including a decrease in the Bank Rate by the Monetary Policy Committee to 3.75% in December 2025. Forecasts suggested no further rate cuts during the financial year, although there was some downside pressure due to concerns around UK GDP growth. UK gilt yields had fallen sharply since September 2025, assisted by the Government's commitment to its fiscal rules in the Autumn 2025 Budget. PWLB rates were also expected to be lower across all maturities by year-end.

Calculation of Council Tax Base for 2026/27

The committee was asked to approve the Council Tax Base calculation for 2026/27, as required by the Local Government Finance Act 1992. The calculated Council Tax Base for the year was 86,535.1 Band D equivalents. Additionally, calculations were required for the parts of the area subject to levies from the Southern and Thames Regional Flood and Coastal Committees of the Environment Agency, which were 50,060.6 and 36,474.5 Band D equivalents respectively. The report indicated an estimated increase in Council Tax yield of £2.345m (1.56%) for 2026/27 compared to 2025/26, based on a collection rate of 98.50%.

Calculation of Business Rates Income 2026/27

A provisional business rates income calculation 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 sector, and a high-value multiplier for large properties. MHCLG had confirmed a business rate baseline figure of £35.555m for 2026/27, a reduction of £4.857m compared to 2025/26, which was offset by an increase of £8.216m in the revenue support grant element of the Fair Funding Allocation.

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 (ARR) for the audit of the Council's accounts for the 2024/25 year. The report contained EY's findings on areas of audit emphasis, their views on the Council's accounting policies and judgements, and material internal control findings. The auditors were also required to consider whether 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 being identified in the remainder of the audit. The draft opinion in the report was a Disclaimer Opinion, which was anticipated as part of the three-year recovery following EY's 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 (ARR) for the audit of the Pension Fund accounts for the 2024/25 year. The report detailed findings on audit emphasis areas, accounting policies, judgements, and internal control matters. The audit work was substantially complete, with outstanding items relating to the finalisation of procedures, including a review of the EFA and other disclosures, cash and cashflow, collection fund debtors, property, plant and equipment valuation, PFI/Leases and IFRS16 implementation. 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 being identified in the remainder of the audit.

Internal Audit & Counter Fraud Progress Reports Q3 2025/26

An update on internal audit activity from September 2025 to January 2026 was provided, covering the finalisation of the 2024/25 plan and the continuation of the 2025/26 plan. An update on counter fraud activity for the period September 2025 to December 2025 was also presented. The report noted that one additional audit had been added to the 2025/26 internal audit plan concerning the Learning & Enterprise College Bexley (LECB) and contract arrangements. The committee was asked to approve this addition.

Risk Management Update

The committee received an update on how risk is managed at Bexley Council and the current activities undertaken. A fundamental review of Bexley's risks was conducted in December 2025 by the Corporate Leadership Team (CLT) and the Head of Assurance, facilitated by insurance experts Zurich. This workshop aimed to identify the top risks for Bexley Council, assess their impact and likelihood, and identify available mitigations. 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 report also outlined a medium to longer-term vision for risk management, focusing on embedding a consistent approach across all levels of the Council and using risk management as a tool for informed decision-making.