The Public Accounts Select Committee met on 26 September 2024 to discuss the Council's financial monitoring, social care commissioning, and its work programme. Key decisions included recommending discussions with the Ministry of Housing, Communities and Local Government regarding the Housing Revenue Account budget and a further review of data management systems in children's social care.

Financial Monitoring

The committee received a report detailing the Council's financial monitoring position for the 2024/25 financial year, as of 31 July 2024. Nick Penny, Head of Service Finance, highlighted the challenging financial situation facing the Council, with pressures across the General Fund, Housing Revenue Account (HRA), Dedicated Schools Grant, and Capital Programme. David Austin, Executive Director for Corporate Resources, provided an update on the Medium Term Financial Strategy, outlining projected savings and cost avoidance measures.

Key points discussed included:

• Savings Delivery: Of the £8 million in savings planned for 2024/25, £6.8 million were on track, £1 million were under review, and £0.2 million were deemed unachievable.
• Housing Revenue Account (HRA): The HRA reserves were noted as being below the optimal level, with work underway to stabilise the account and rebuild reserves. Measures to improve the repairs service and manage costs were discussed.
• Capital Programme: Slippage in the capital programme was identified, particularly in the delivery of new homes, which was noted as increasing costs due to construction expenses and foregone rental income.
• Debt Collection: Initiatives to streamline debt management and improve reporting were discussed, with an assessment being made on the appropriate resourcing for council tax and business rate collection teams.

Councillor Amanda De Ryk, Cabinet Member for Finance, Resources and Performance, acknowledged the need for improvement in council tax and business rate collection and stressed the importance of early engagement with the government regarding HRA pressures.

The committee resolved to refer its views to Mayor and Cabinet, recommending that the Council open discussions with the Ministry of Housing, Communities and Local Government about actions to stabilise the HRA Budget should sufficient overspend reductions and one-off funding not be identified. The committee also requested a turnaround time for void housing to be provided.

Social Care Commissioning and Contracting

The committee received reports on commissioning and contracting in both adult and children's social care.

Adult Social Care: Tom Brown, Executive Director of Adult Social Care and Health, introduced the report, outlining the aims of adult social care, the duties under the Care Act 2014, and the financial pressures facing the sector. Councillor Paul Bell, Cabinet Member for Health and Adult Social Care, highlighted the relative stability of homecare services in Lewisham due to the Council's commitment to the London Living Wage and the Maximising Wellbeing at Home approach. He noted that while staffing care homes was more challenging, it was still better than the national situation. The committee welcomed the improvements in adult social care services.

Children's Social Care: Councillor Chris Barnham, Cabinet Member for Children and Young People, introduced the report on children's social care, acknowledging the sector's challenges and Lewisham's financial pressures. Lucie Heyes, Director of Children's Social Care, detailed the number of children in contact with care services and the associated costs. Key points included:

• Rising Demand and Costs: The cost of externally commissioned placements remains a significant pressure, with a national issue of increasing costs for children in care.
• Legacy Issues: The cohort of 16- and 17-year-olds in care was identified as a legacy of previous practices, contributing to higher numbers entering care.
• Service Improvements: The service has seen improvements in its Ofsted rating to 'Good', with a stabilised workforce and a focus on preventative measures.
• Data Management: Members noted concerns about the historical issues with invoicing and payment systems within children's social care.

The committee resolved to recommend that officers conduct a further review of the data management systems in children's social care and present a timeline for improvement.

Select Committee Work Programme

The committee reviewed its work programme for the upcoming meetings, noting the importance of social value in Council contracts, including the benefits of paying the London Living Wage. The work programme for the meeting on 28 November was agreed.

The meeting concluded at 21:55.