The Finance and Growth Overview and Scrutiny Sub-Committee met on Monday 7 September 2026 to discuss the challenging market conditions affecting development and regeneration projects, review a proposal for a long-term electricity Power Purchase Agreement, and examine the council's debt recovery processes. Key decisions included noting the market context for development, approving the progression of the electricity PPA proposal to Cabinet, and discussing improvements to debt collection across various council services.

Development and Regeneration Projects in Barnet

The committee received an update on the current residential development market conditions, presented by John Percy from CBRE, a property consultancy. He highlighted a difficult economic environment with inflation peaking around 4% and mortgage rates increasing, leading to significant affordability constraints for buyers. London's residential market has seen the largest annual fall in house prices at 3.7%, with buyer demand remaining deeply negative. Despite these challenges, Barnet ranks fifth out of 33 London boroughs for housing delivery, a strong performance attributed to large-scale projects like Brent Cross Town.

Two case studies were presented:

• Moxon Street and Whitings Road: These two sites in High Barnet are being developed into 56 mixed-tenure homes. The schemes, which include social rent, shared ownership, and private sale properties, are predominantly house-led and designed to be family-sized. The project has involved extensive community engagement, securing a letter of support from the Barnet Society.
• Little Strand: This is a 100% affordable rent scheme on the Grahame Park Estate, which involved demolishing eight bungalows and 46 garages to build 35 homes. The development includes flats and family-sized houses, a pocket park, and aims to green the area. The project faced significant public opposition during construction, primarily concerning parking, but lessons learned have informed future community engagement strategies.

Review of Fixed Price Electricity Procurement

The committee reviewed an outline business case for procuring 40% of the council's electricity volumes through a Power Purchase Agreement (PPA) over a 15-year period. The primary objective of this PPA is to fix prices and protect the council from market volatility, rather than to achieve cost savings, although a potential saving of £59,000 in the first five operational years was noted under a low-cost scenario. The proposal, which involves sourcing electricity from a solar farm, was recommended for progression to Cabinet. Members raised concerns about the long-term commitment, potential costs, and the need for detailed scrutiny of the contract terms.

Overview of Council Processes to Achieve Debt Recovery

The committee received an update on the council's debt recovery processes for Adult Social Care, Council Tax, Business Rates, and Property Services.

• Adult Social Care: The total unsecured debt stands at £20.797 million, with a significant portion being high-value and complex cases. The service is implementing improvements to case management, legal recovery pathways, and debt prevention strategies, including enhanced communication and a new contractor, Liberata, for Council Tax and Business Rates.
• Council Tax and Business Rates: Collection rates for both council tax and business rates remain below pre-pandemic levels. A new contract with Liberata, commencing in October 2026, aims to improve collection rates through system enhancements, debtor segmentation, and increased automation. The transformation programme is expected to generate significant additional income for the council. Delays in the Valuation Office process for new builds and legislative changes affecting private schools were identified as factors impacting recent performance.
• Commercial Property Debt: The total commercial arrears position is £1,556,342. The Estates team is actively managing these arrears through engagement, repayment plans, and escalation to enforcement services, including Crown Enforcement Services (CES), where necessary. The top ten arrears cases represent a significant proportion of the total debt and are a priority focus for recovery.

Task and Finish Group Updates and Cabinet Forward Plan

The committee noted updates on ongoing Task and Finish Group activities, including those focusing on Allotment Management and Governance, Food Security, Fostering, and Young Carers. They also reviewed the Cabinet Forward Plan for 2026-2027, identifying potential items for pre-decision scrutiny. The draft Work Programme for the Finance and Growth Overview and Scrutiny Sub-Committee for 2026/27 was also presented for comment.