The Merton Council Cabinet met on Monday 23 June 2025, approving variations to the EAMS contract, adopting interim strategies for the Voluntary and Community Sector and Volunteering, and noting the financial outturn for 2024/25. Key decisions also included the acquisition of temporary accommodation to address the housing crisis, longer-term contract arrangements for parks and greenspace grounds maintenance, and adjustments to the capital programme.

Acquiring Temporary Accommodation to Address the Housing Crisis

The Cabinet approved a property acquisition programme to provide temporary accommodation for homeless households, utilising Local Authority Housing Funding (LAHF). This initiative aims to address the increasing demand for temporary accommodation across London, which has seen a significant rise in households requiring such support. The council has been allocated £7.17 million in capital funding from the LAHF Round 3 scheme to purchase 27 homes, with 23 designated for temporary accommodation, three for resettlement, and one larger property for local housing needs. This programme is part of a broader three-strand strategy to increase housing supply, alongside new affordable housing construction on council-owned land and through the planning system. The decision delegates authority to the Executive Director of Housing & Sustainable Development, in consultation with the Executive Director for Finance & Digital, to acquire properties and manage the funding in accordance with LAHF conditions. Managing agents and repair and maintenance operators will also be procured.

Parks and Greenspace - Grounds Maintenance, Longer-Term Contract Arrangements

The Cabinet approved the report on the longer-term future for grounds maintenance and park-related activities, commencing in November 2026. A competitive tender process will be initiated for a new 14-year contract (7+7 years). This decision follows an examination of various options, including insourcing, creating a Local Authority Trading Company (LATCo), outsourcing, shared services, and establishing a Greenspace Trust. The preferred option is to outsource the service through a competitive tender, which is considered the most cost-effective solution while allowing for the adoption of changing technologies and innovative management techniques. The council will also explore opportunities to offset increasing contract costs through innovation, commercial opportunities, sports development, and strengthening partnerships with Friends groups and volunteers. Delegated authority to award the contract will be given to the Executive Director in consultation with the relevant Cabinet Lead Member.

Merton's Interim Voluntary and Community Sector Strategy 2025-27 and Interim Volunteering Strategy 2025-27

The Cabinet agreed to adopt two interim strategies and their associated action plans for the Voluntary and Community Sector (VCS) and Volunteering, covering the period 2025-27. These strategies lay the groundwork for the co-design and development of longer-term strategies for 2027-2035. The interim strategies aim to review the delivery of actions from the 2017 strategy, separate volunteering and the VCS into distinct but interconnected strands, establish a co-design process for future strategies, and ensure continued support for the sector during this development period. The Civic Pride Fund: Supporting the Voluntary and Community Sector 2023-26 will also be extended for a further financial year in 2026-27. This approach was favoured over continuing with the existing 2017 joint strategy, which is considered outdated due to significant changes since its publication, including the COVID-19 pandemic and the cost-of-living emergency.

Variation Report - EAMS Contract to Include DTTRO and One Network

The Cabinet approved a variation to the existing Environmental Infrastructure Asset Management and Street Works Solution Contract with Causeway. This variation will incorporate the 'One.Network' platform for improved planning, monitoring, and communication of traffic disruptions and street works, and the 'Parkmap' system to meet new legislative requirements for digitising Traffic Regulation Orders (TROs). The 'One.Network' platform will provide a public-facing mapping facility for road works and highway activities, enhancing communication with residents and businesses, and enabling live updates to navigation systems. The 'Parkmap' solution will ensure compliance with the Digital Traffic Regulation Orders legislation, digitising all TROs and Temporary Traffic Regulation Orders (TTROs). This variation is considered the most efficient and cost-effective option, leveraging the existing contract with Causeway, who are described as an industry leader in these areas. Authority was also delegated to the Executive Director of Environment, Civic Pride and Climate to award further extensions or variations to the contract.

Outturn Report 2024/25

The Cabinet noted the financial outturn position for the revenue and capital programmes for 2024/25. The revenue outturn showed a net overspend of £2.521 million, which includes corporate and funding items. The report detailed departmental outturns, with significant pressures noted in Children, Lifelong Learning & Families (£3.717m overspend) and Housing and Sustainable Development (£5.347m overspend), largely attributed to increased demand for placements and temporary accommodation. Conversely, Finance & Digital and Innovation & Change directorates reported underspends. The capital programme outturn was £34.6 million against a budget of £37.9 million, with significant slippage noted in several departments, particularly Housing & Sustainable Development. The report also detailed the movement in reserves, showing an increase in the General Fund balance. Adjustments to the capital programme for 2024-25 and proposed amendments for 2025-29 were also approved, including significant allocations for Temporary Accommodation acquisitions and fleet vehicle replacement.

Miscellaneous Debt Update 31 March 2025

The Cabinet received an update on the council's aged debtors report as of 31 March 2025. The total net debt over 30 days old remained stable at £25 million, consistent with the position at the end of December 2024. The largest proportions of debt are within the Environment, Civic Pride and Climate, and Adult Social Care, Integrated Care and Public Health departments. Adult Social Care debt has remained stable but with an increase in newer debt, while Housing Benefit overpayment debt has also slightly increased. Recovery actions for unpaid council tax and business rates resumed in February 2025 after a suspension due to a system migration, with collection rates remaining similar to the previous year. Business rates collection exceeded its target, while council tax collection was slightly below target. Parking debt has increased due to a new software solution implementation. The report also detailed the collection of arrears from previous years and the ongoing management of housing benefit overpayments, including long-term payment arrangements for vulnerable residents.