The Finance and Corporate Services Overview and Scrutiny Committee met to discuss the upcoming insurance procurement, the modernisation of the council's digital, data, and technology capabilities, and to receive updates from cabinet members. Key decisions included noting the report on insurance procurement and approving the scope for a task and finish group on technology rationalisation.

Insurance Procurement

The committee was asked to note the report on the council's main insurance contract, which expires in June 2027. The proposed approach involves a framework procurement, continuing the mixed self-insurance and external insurance model, with the potential addition of Cyber and Human Rights Act cover. Tendering is anticipated in January 2027, with a decision expected in March or April of the same year.

During the discussion, councillors raised questions about the rationale for not always selecting the lowest cost option, with officers explaining that the focus is on best value, which can include training and risk management support from insurers. Concerns were also raised about the adequacy of information regarding new or changed risks, and the robustness of risk assessments. The addition of cyber security cover was welcomed, and the timeline for tendering was clarified.

Questions were also posed regarding insurance for Human Rights Act claims without physical or psychiatric injury, the length of future provider contracts, and strategies to mitigate exposure to contract inflation. Officers explained that while damage awards for such claims might be nominal, legal costs can be significant. The contract length is proposed as a six-plus-one-plus-one-plus-one model, offering up to nine years of cover. Regarding inflation, the long-term agreement wording allows for capped, index-linked increases, not fixed prices, to account for changes in exposure, such as increased vehicle numbers or wage roll.

The committee also discussed excess levels, with the insurance broker, Marsh Ltd, confirming that current levels are appropriate and comparable to other authorities, acting to self-insure smaller claims. The adequacy of insurers to adapt to changing risks, such as climate change and the risks associated with electric vehicle batteries, was addressed, with assurances that insurers are large, multinational organisations adept at managing evolving risks. The potential for increased public liability claims was noted, with explanations provided that higher numbers in recent years are due to claims still being processed, rather than an inherent increase in incidents.

Future Bexley: Corporate Core

The committee received an update on the progress of modernising the council's digital, data, and technology (DDaT) capabilities. The report highlighted achievements in strengthening governance, cyber security, infrastructure, application management, and data capability. Key initiatives include the establishment of the DDaT Board, the approval of a Zero Trust network strategy, migration to Microsoft E5 licensing, and the deployment of Windows 11.

Councillor Terry Barcock sought clarification on the principles of Zero Trust, which was explained as a security model where access is continuously verified, reducing the risk of cyber security breaches by trusting nothing by default. The slow rollout of Windows 11 was attributed to a cost-saving approach of using existing hardware and software to its maximum lifespan.

Concerns were raised about the cybersecurity implications of older software, with officers confirming that a cybersecurity action plan, developed from a government assessment framework, guides decision-making. The transition to Windows 11 was presented as an N-1 approach, common in corporate environments to ensure stability and compatibility.

The AI-driven web chat service was discussed, with an 86.6% success rate in providing complete answers or directing users appropriately. While this was considered a good result, councillors expressed a desire for improvement and clarity on what happens to the remaining 13% of queries. The potential for AI to improve the handling of stage 1 and stage 2 complaints was also explored, with assurances that the AI co-pilot agent can summarise complaints to improve efficiency and adherence to the new Ombudsman Code. The ongoing learning and improvement of the web chat, with a target of over 95% success rate, was emphasised, along with the option for users to speak to a human advisor if needed.

The potential for cost savings through the Zero Trust Network was highlighted, with an estimated £800,000 in avoided capital expenditure. The move to cloud-based services was discussed, with an ongoing revenue cost expected, but a projected reduction after approximately three years. The shift from capital expenditure (CAPEX) to operational expenditure (OPEX) was acknowledged as a cultural change, with assurances that robust governance is in place through the Digital Data and Technology Board, chaired by the Chief Executive.

Update from Cabinet Members

Councillor David Leaf, Leader and Cabinet Member for Resources and Transformation, provided an update on budget planning, the refresh of the corporate plan, and the national economic uncertainty. He highlighted ongoing discussions about devolution and rewiring the state, expressing concern about the lack of clarity from the government on these matters. Councillor Leaf also welcomed the return of Waterstones and Clinton Cards to the Broadway, linking this to the council's economic growth strategy.

Councillor Stefano Borella, Leader of the Labour Group, questioned the council's approach to BexleyCo and its business plan, suggesting the current model is not working. He also raised concerns about the civic centre accommodation and the use of other council assets. Councillor Leaf responded that an updated business plan for BexleyCo would be presented in November and that options for utilising civic offices were being explored. He defended BexleyCo's track record, stating it had delivered homes and returns to the council.

Councillor Caroline Newton, Cabinet Member for Corporate Services and Education, provided updates on HR initiatives, including new values and a performance management approach, and the success of the Leadership Academy. She also highlighted improvements in staff engagement and the launch of the 2026 staff survey. Updates were also given on legal and democratic services, including training on the new national scheme of delegation and the retention of Lexel accreditation.

Work Programme

The committee was asked to agree its work programme, consider the Quarter 1 Bexley Status Report, note the proposed Transformation Pipeline Project Subgroup, and approve the scope for the Technology Rationalisation and System Integration Task and Finish Group. The committee agreed to the work programme and noted the proposed subgroup. The scope for the Technology Rationalisation and System Integration Task and Finish Group was approved. A suggestion was made to conduct a reality check visit to the new Waterstones once it opens.

The Bexley Status Report for Quarter 1 (April to June 2026) was considered, with particular attention paid to exceptions. Indicator FC_04 (% of debts collected in 90 days by value) was a positive exception for May 2026. Indicator FC_05 (% of debt placed on query hold for more than 90 days) was an exception for June 2026 due to a downward trend. Indicators FC_08 (% of Stage 1 corporate complaints closed on time) and FC_14 (% of member enquiries closed on time) were noted as exceptions for April 2026, showing downward trends and variability.

The proposed scope for the Transformation Pipeline Project Sub-group, focusing on corporate alignment, prioritisation, and resourcing of transformation ideas, was noted. The scope for the Member Task and Finish Group on Technology Rationalisation and System Integration was approved, aiming to understand the council's technology estate, spending, and decision-making processes to ensure efficiency and value for money.