The Policy and Resources Cabinet Committee met on Wednesday, 11 March 2026, to discuss a range of critical financial, operational, and strategic matters. Key decisions included the endorsement of a new three-year Microsoft 365 licensing agreement and Azure consumption plan, and the approval of a two-year extension to the council's insurance arrangements. The committee also reviewed the council's corporate risk register, key performance indicators for the upcoming financial year, and considered proposals for generating income through Biodiversity Net Gain.

Risk Management: Chief Executive's and Deputy Chief Executive's Departments

The committee received an annual report on the strategic risks facing the Chief Executive's and Deputy Chief Executive's Departments, as well as those on the Corporate Risk Register relevant to these departments. Mr. Brian Collins, Deputy Leader of the Council, and Mr. Mike Hand provided an overview of the corporate risk register, highlighting that it presents a summary of strategic risks and a brief commentary on the latest situation. The appendix to the report details the relevant corporate risks. The discussion touched upon several high-risk areas, including Asset Management and Degradation (CRR0053), where the risk remains high due to financial pressures and the affordability of the capital programme. Another significant concern was the Risk of significant adverse variance to the level of savings and income agreed in KCC's budget (CRR0059), with a high current risk rating due to spending growth pressures exceeding forecasts, particularly in Adult Social Care. The committee also noted the Cyber and Information Security Resilience risk (CRR0014), which remains high due to evolving threats. The Future financial operating environment for Local Government (CRR0009) was also discussed, remaining a high risk due to spending demands exceeding the council's core spending power. The Capacity and capability of the workforce (CRR0058) was identified as a high risk, with challenges in attracting and retaining staff. The committee also considered risks related to Maintaining effective governance and decision making (CRR0045) in a challenging financial environment, and Information Governance (CRR0039).

Key Performance Indicator Review for 2026/27: Chief Executive's and Deputy Chief Executive's Departments

The committee reviewed the proposed Key Performance Indicators (KPIs) and activity indicators for the Chief Executive's and Deputy Chief Executive's Departments for the 2026/27 financial year. Mr. Matt Wagner, Chief Analyst, presented the report, which detailed proposed changes to KPIs across various services, including Finance, Governance and Law, Infrastructure, Marketing and Resident Experience, Human Resources and Organisational Development, and Technology. A new section for Commercial and Procurement was introduced, featuring KPIs on procurement savings, spend with SMEs and local businesses, and the number of waivers issued. The committee was also informed about the new Local Outcomes Framework published by the Ministry of Housing, Communities and Local Government, and it was proposed that a paper be brought to the July meeting to map KCC's KPIs against this framework.

Microsoft 365 Licences Enterprise Agreement and Azure Consumption 2026 – 2029

A key decision was made regarding the council's technology infrastructure. The committee considered and endorsed the proposal to enter into a new three-year licensing agreement with Microsoft, commencing on 1 July 2026, for Microsoft 365 licences and Azure consumption. This agreement, valued at approximately £12.3 million for licences and £3 million for Azure consumption, will ensure continued access to essential tools, enhanced security features, and support the council's Cloud First strategy. The decision was made to procure this through the existing KCS Framework Y23065, with delegated authority given to the Director of Technology, in consultation with the Deputy Leader, to finalise the terms.

Extension for Kent County Council's insurance arrangements

The committee considered and endorsed the proposal to extend Kent County Council's insurance arrangements for a further two years, until 31st December 2028. This extension, valued at approximately £12 million, is deemed necessary due to the impending changes arising from Local Government Reorganisation (LGR), which is expected to make a full tender process unattractive to insurers and potentially lead to higher premiums. The extension, permissible under Regulation 72 of the Public Contracts Regulations 2015, will ensure continued insurance cover past the anticipated LGR implementation date of April 2028. The decision was delegated to the Corporate Director of Finance, in consultation with the Deputy Leader.

Biodiversity Net Gain Overview

The committee received an overview of Biodiversity Net Gain (BNG), a mandatory requirement for developers under the Environment Act 2021, which necessitates a 10% increase in biodiversity value following development. The report highlighted an opportunity for Kent County Council (KCC) to generate income by creating or improving habitats on its land, which could then be sold to developers as off-site BNG units. This could provide a long-term income stream and support environmental stewardship. The council is exploring various approaches, from in-house provision to outsourced models, and will assess options based on criteria including scalability, financial return, environmental benefits, and deliverability. The committee was asked to note the report and comment on the proposal to use KCC sites for BNG units.

Implementation of the Commercial Strategy: Feedback on Supplier Day

The committee received feedback on the inaugural Kent Supplier Day, held to launch the Commercial Strategy and strengthen engagement with local suppliers. The event was attended by over 300 businesses, with 60% being Kent-based SMEs or VCSE organisations. Feedback indicated strong interest in transparent procurement, social value delivery, and early market engagement. Areas for future development included expanding networking opportunities, increasing exhibition space, providing more technical deep-dives, and exploring hybrid and digital engagement models. The report noted that future events would aim to increase participation from micro-businesses, rural providers, and digital/technology start-ups.

Work Programme

The committee reviewed its Work Programme for 2026, noting regular items such as performance dashboards, financial updates, and specific reports on topics like the Kent & Medway Domestic Abuse Strategy and Exercise Troy recommendations. Key decisions scheduled for future meetings include the Langton Field Disposal and the implementation of recommendations from Exercise Troy.

Risk Management: Chief Executive's and Deputy Chief Executive's Departments

In addition to the detailed discussion under the Risk Management agenda item, the committee noted the specific risks led by the Chief Executive's and Deputy Chief Executive's Departments. These included departmental resource capacity, modernisation of financial operations, and border control systems. The committee was asked to consider and comment on these risks.