The Leadership Team of Kensington and Chelsea Council met on Wednesday, 20 March 2024, to discuss the council's financial position, housing regulations, and support for vulnerable households. Key decisions included approving the Q3 financial monitoring report, renewing a joint venture agreement, and allocating funds from the Household Support Fund.

Q3 Financial Monitoring Report 2023/24

The council's financial position was reviewed, with a forecast General Fund revenue budget overspend of £2.778m noted. Despite this, the overall financial position was described as generally strong, though a call for continued prudence in spending and risk management was made. The Leadership Team agreed to adopt recommendations concerning the General Fund revenue budget forecast, the Housing Revenue Account (HRA) forecast transfer, and the General Fund Capital Programme. They also agreed to rephase capital budget slippage, approve new capital funding requests, and agree capital virements within directorates. The HRA Capital Programme forecast underspend, savings position, and reserves position were also noted. Movements between reserves were agreed, along with new requests for additional funding from reserves.

Council Compliance with the Social Housing (Regulation) Act 2023

The Leadership Team discussed the council's compliance with the Social Housing (Regulation) Act 2023, which introduces significant legislative changes and new regulatory powers for the Regulator for Social Housing. It was noted that housing management has already made substantial improvements in response to the Grenfell tragedy. The team endorsed the council's arrangements to meet the new regulatory regime and agreed that the Director of Housing Management would be the statutory Health and Safety Lead Officer under the Act.

Implementation of the Enterprise Resource Planning (ERP) Solution - Oracle - Revised Arrangements

Revised arrangements for the implementation of the Oracle Enterprise Resource Planning (ERP) solution were agreed. The Leadership Team noted the risks associated with the current 'Go Live' date of October 2024 and agreed to a new 'Go Live' date of April 2025. This decision involved extending and varying contracts with Bramble Hub Ltd and Version 1 Solutions Ltd, and entering into a direct call off from the Oracle ERP Cloud Implementation - Digital Marketplace with Version 1 Solutions Ltd. The existing arrangement with Hampshire County Council for the provision of the IBC service was also extended. Authority was delegated to the Executive Director of Resources to approve and finalise the terms of the necessary agreements. Additional internal resource requirements and the purchase of further Oracle licences were agreed, with a reduction in the programme contingency. The additional costs associated with the revised programme timetable are to be funded from reserves.

Household Support Fund Update and Mitigations

An update on the Household Support Fund (HSF) was presented, highlighting its importance in assisting vulnerable households with rising living costs. The council has received £6m from this fund to date. The Leadership Team welcomed the report and agreed to allocate the 2024/25 six-month HSF to several initiatives. These include funding for schools to support families eligible for Free School Meals, an emergency food fund, the continuation of the Kensington and Chelsea Foundation's Cash First Scheme, and the Kensington and Chelsea Social Council Community Resilience Support Programme. It was also agreed that any shortfall in the final HSF allocation would be delegated to the Executive Director of Resources, in consultation with the Lead Member for Finance, Customer Services and Net Zero.

Renewing the Joint Venture Agreement - Central London Forward

The Leadership Team agreed to renew the partnership agreement for Central London Forward (CLF) for the period 1 April 2024 to 31 March 2028. CLF is described as the largest of four sub-regional partnerships across Greater London, acting as a conduit between boroughs and London government to champion strategic interests and foster collaboration. The annual subscription fee of £40,000 was considered good value for money, providing additional services beneficial to residents and promoting inclusive and sustainable growth.

Annual Resilience Report - Standards for London Self Assessment

The Annual Resilience Report for 2023 was approved. The Leadership Team agreed the current position statement for each resilience standard in the Resilience Standards for London and noted areas of improvement, particularly in response to learning from the Grenfell Public Inquiry. These improvements include enhanced resilience training, strengthening the emergency rota and on-call cover, and fostering greater community resilience.

Second Home Premium

The Leadership Team agreed to allow the council to make a future decision on implementing a Second Home Premium of up to 100% with effect from 1 April 2025. A further report and recommendations will be considered once guidance has been received from the government. The decision on whether to implement a premium will be made as part of the budget and council tax setting process for 2025/26.