Here is a summary of the items scheduled for discussion at the Royal Borough of Kensington and Chelsea Leadership Team meeting on 9 July 2025.

The meeting included discussion of the council's response to the Grenfell Tower Inquiry, the annual treasury management report, the final financial monitoring report for 2024/25, the medium-term financial strategy, housing management performance, and a new housing strategy. Councillors were also scheduled to discuss a licence agreement for advertising digital boards on Cheyne Walk.

Grenfell Tower Inquiry Update

The Leadership Team was scheduled to note the progress on the 45 commitments made by the council in response to the Grenfell Tower Inquiry Phase 2 report, published in September 2024. The report also included key risks and issues, and the proposed response to feedback from the Overview and Scrutiny Committee.

According to the report pack, since November 2024, the council has:

• Extended the ban on contractors and products tied to the Grenfell fire.
• Achieved professional accreditation for all Building Control officers and introduced a four eyes principle.
• Launched a consultation on public participation.
• Adopted a Fairer Action Plan.
• Updated senior officer contracts to embed resilience duties.

The report pack also noted that the expression of interest process for the Independent Advisory Panel closed on 8 June, with 37 applications received.

Treasury Management Outturn Report 2024/25

The Leadership Team was scheduled to review the Treasury Management outturn report for 2024/25, which summarises the council's treasury management activities for the year. The report covered the treasury position as at 31 March 2025, the outcome of the borrowing strategy for 2024/25, information on compliance with treasury limits and the council's Prudential Indicators¹, and the outcome of the investment strategy for 2024/25. The report pack stated that the cash investment portfolio had a weighted average yield of 4.67%, while the debt portfolio had a weighted average interest rate of 4.13%. It also noted that treasury officers anticipate further reductions in the Bank Rate and gilt yields/ Public Works Loan Board (PWLB) borrowing rates during 2025/26 as CPI inflation continues to fall.

Final Financial Monitoring Report 2024/25

The Leadership Team was scheduled to note the final financial outturn position at the end of the 2024/25 financial year. The report included the General Fund revenue budget, the Housing Revenue Account (HRA) revenue position, the General Fund Capital Programme, the Housing Revenue Account (HRA) Capital Programme, Section 106 (S106) and the Community Infrastructure Levy (CIL), schools and education, savings, reserves, performance indicators, and council tax and business rates.

The report pack noted a General Fund revenue budget underspend of £5.207m, and a Housing Revenue Account transfer of £2.731m to the capital programme.

Medium Term Financial Strategy 2026/27 to 2029/30

The Leadership Team was scheduled to review the council's financial position as set out in the Medium-Term Financial Strategy (MTFS) including the Capital Strategy and recommend the Strategy to Council for approval.

The report pack noted that since the paper went to Overview and Scrutiny Committee in June, the government launched its consultation on the proposed approach to local authority funding reform from 2026/27. Initial estimates suggested the changes proposed would reduce the council's funding by £82.7m over the period 2026/27-2028/29. Based on this estimate and other known funding allocations and forecast assumptions there was now an estimated budget gap of up to £41m in 2026/27 and £118m over the next four years.

Housing Management Performance Reporting - Q4 2024/2025

The Leadership Team was asked to note the overall Red-Amber-Green rating position for all performance metrics and consider the contents of the report and make any relevant recommendations following this consideration.

The report pack noted that at the end of March 2025 domestic gas compliance stood at 99.98%, with 1 property without a valid gas safety certificate. At year end, 100% of applicable buildings had a valid Fire Risk Assessment (FRA). Electrical testing continues to improve, with an improvement at March end of 3.09 percentage points compared to the March 2024 outturn.

Housing Strategy 2025-2030

The Leadership Team was recommended to approve the new Housing Strategy 2025-2030 and agree that the Housing Strategy be presented to Full Council for information later in 2025, alongside the outcome of the recent inspection undertaken by the Regulator of Social Housing.

The report pack stated that the vision of the new Housing Strategy is to embed the learning from Grenfell to provide safe, modern homes and promote the supply of different types of housing for local communities. The Strategy is based on three key priorities: (1) provide a diverse supply of housing to help local residents achieve their aspirations for a settled home; (2) ensure our homes are safe and meet the Decent Homes Standard; and (3) deliver exemplary housing and landlord services.

License Agreement with London Lites Ltd

The Leadership Team was recommended to grant London Lites a licence based on the draft terms set out in the exempt (Part B) Appendix 1 having been granted planning permission (CA/25/02538) and (PP/24/08267) both granted on 24/06/2025 for the installation of two digital boards and two surrounding green wall structures at 106 Cheyne Walk.

The report pack stated that the current License Agreement originally granted for a period of 60 months, with the incumbent supplier, was due to expire in 2028. However, this License Agreement has been underperforming, with the income returned disappointingly low. Notice was served to terminate the existing licence on 28 November 2024 resulting in a new expiry date of 28 May 2025. Fourteen suppliers expressed an interest, to become the new licensee, from which six eventually submitted a bid.