The Public Accounts Select Committee met on Thursday 17 September 2026 to discuss social value in procurement, the council's treasury management strategy, and financial monitoring for the 2026/27 period. Key decisions included noting the report on the Social Value Delivery Framework, noting the Treasury Management Strategy, and noting the financial monitoring report for Period 3. The committee also agreed to update its work programme.

Social Value in Procurement

The committee noted the report on the Social Value Delivery Framework, which aims to streamline and clarify how the council secures social, economic, and environmental benefits through its procurement processes. Spike van der Vliet-Firth, Head of Economy, Jobs and Partnerships, explained that the framework simplifies the previous approach, reducing around 80 Key Performance Indicators (KPIs) to seven tracked commitments and a set of core commitments. This aims to make the process more consistent and easier for contract managers and suppliers to understand.

Councillor James Rathbone questioned the decision to increase the social value threshold from £50,000 to £100,000. Councillor Katharine Nidd, Director of Finance, explained this was aligned with revised contract procedure rules following the Procurement Act 2025 and reflected the impact of inflation, with £100,000 being a common benchmark across London boroughs. Discussions also covered how to prioritise local spend within the borough, with officers highlighting the council's power to limit procurements to specific regions and the importance of local knowledge in identifying potential suppliers.

Concerns were raised about the potential for financial donations to be used to game the system, leading to increased contract prices without genuine additional value. Officers assured the committee that financial donations would be capped against contract value, would only account for a small percentage of the overall tender score, and would be reinvested back into the borough. The process for receiving and deciding on the allocation of these donations is still being developed, but it was confirmed that the council would receive the funds and transparently allocate them to council priorities.

The committee also discussed the definition of local in terms of employment and spend, acknowledging that resident commuting patterns extend beyond the borough. The framework aims to measure what is generated within the local authority boundary but also has a focus on London. The timeline for the wider Social Value and Procurement Strategy 2026-30 was noted as still in development, with further scrutiny welcomed.

Treasury Management Strategy

The committee noted the report on the Treasury Management Strategy (TMS), which reviewed the council's treasury management activities for 2025/26 and outlined the strategy for 2026/27. Katharine Nidd, Acting Director of Finance, introduced the report, highlighting that the council had maintained a prudent approach, prioritising the security and liquidity of investments.

The report detailed that as of 31 March 210.185.1 million pounds of investments and 343.9 million pounds of external borrowing and long-term liabilities were held. The council remained significantly under-borrowed, utilising internal cash balances rather than external borrowing due to high borrowing costs. For the year to date (30 June 2026), the council held approximately £210 million in investments, achieving an annualized return of around 3.7%, close to the Bank of England base rate.

Councillor Rathbone commended the council's prudent financial management and avoidance of high-risk investments. Discussions also touched upon the potential impact of a significant capital bid from the Greater London Authority (GLA) on future debt limits, with a suggestion for cross-party political discussion on this long-term financial commitment. The strategy for borrowing in advance of need was clarified, with officers stating that this is generally discouraged, and the council tends to borrow in arrears rather than in advance to avoid speculation.

Financial Monitoring 2026/27 - Period 3

The committee noted the report on financial monitoring for the 2026/27 financial year, as at the end of June (Period 3). Catherine Nidd, Director of Finance, reported that the General Fund was forecasting an overspend of £6.5 million for the full financial year, an increase of £3.4 million since May 2026 (Period 2). This movement was primarily attributed to increased costs in the Parking contract within the Place Directorate and additional school transport costs in Children and Young People.

The Dedicated Schools Grant (DSG) was forecasting a £10 million overspend on the high needs block, a position that was confirmed from Period 2. The Housing Revenue Account (HRA) was anticipating a £2.7 million overspend. Council Tax collection stood at 91% and Business Rates collection at 95% at the end of June, with the report noting that these figures fluctuate throughout the year.

Significant pressures were highlighted in Children and Young People's services, particularly concerning children in care and special needs transport, and in Adult Social Care and Health due to increasing demand and complexity of care. The Place Directorate's overspend was primarily linked to the parking services contract.

The report also detailed the council's risk section, noting that while some risks had been mitigated, others, particularly in children's and adult social care, remained high. The council tax and business rates collection rates were also flagged as areas of concern. The committee was informed that the council has a duty to raise the alarm if it foresees an inability to balance its budget, and that this is a constant challenge navigated through difficult choices about priorities and statutory requirements.

Select Committee Work Programme

The committee reviewed its work programme for the 2026/27 municipal year. It was agreed that the Green Bond item would be deferred to a later meeting as it was not yet at an appropriate stage for consideration. The Income Generation item was agreed to be included in the next meeting's agenda, alongside the Savings and Cuts Options report. The committee agreed to the proposed changes to the work plan and noted that the next meeting would be held on 12 November 2026.

The committee also noted the final decision documents for the meeting, which confirmed that the committee noted the report on Social Value Delivery Framework, noted the Treasury Management Strategy, and noted the Financial Monitoring 2026/27 - Period 3 report. The Select Committee Work Programme was also updated to reflect that the Income Generation report would be considered at the next meeting.