The Performance and Finance Scrutiny Sub-Committee of Harrow Council met on Tuesday 29 July 2025 to review the council's financial outturn for the 2024-25 financial year and its strategic performance for the fourth quarter. The committee noted an underspend of £1.553m on the revenue budget and a significant variance in the capital budget, largely due to slippage. Members also reviewed the council's performance against its corporate plan priorities, highlighting both achievements and challenges across the Residents First, Clean and Safe, and Supporting Those in Need areas.

Revenue and Capital Monitoring 2024-25 (Final Outturn) Report

The committee received the Revenue and Capital Budget 2024-25 Final Outturn Report, which detailed the council's financial position for the past fiscal year. Councillor David Ashton, Portfolio Holder for Finance & Highways, was in attendance.

The Strategic Director of Finance and Assurance reported that the final outturn on the revenue budget for 2024/25 showed an underspend of £1.553m. This underspend was fully contributed to the Budget Planning Reserve, resulting in a balanced overall position.

Regarding the capital budget, the final General Fund capital programme for 2024/25 stood at £122.598m. The actual outturn for capital expenditure was £40.465m, representing 33% of the total programme budget. A significant variance of £82.133m was noted, comprising £78.349m in slippage and an underspend of £3.784m.

During the discussion, members raised concerns about the increased expenditure on temporary accommodation, which has been rising annually due to more residents presenting as homeless and landlords withdrawing properties from the private rented sector. The council is actively acquiring more properties to address this issue, which is a challenge faced by all London boroughs.

Questions were also raised about the doubling of agency staff engagement since 2023 and efforts to transition them to permanent roles. It was explained that agency staff are employed across various directorates for reasons ranging from sickness cover to acquiring specific skill sets. Members also inquired about potential staffing structure failures impacting staff resilience. The council acknowledged having lean staffing levels, which can affect resilience during periods of staff absence or increased challenges.

Concerns were expressed about an anticipated budget deficit in 2026-2027 and the measures being taken to enhance the council's financial resilience. Regular budget planning meetings with senior directors are held to identify areas for efficiency savings, with the expectation that the deficit will be managed despite financial pressures in adult and children's services and temporary accommodation.

The impact of increased National Insurance contributions on the council's finances and central government compensation was discussed. It was noted that the grant received from central government was £500,000 short of expectations, a situation affecting most London boroughs. Harrow's reserves were considered to be in a relatively strong position compared to other councils.

Members also voiced concern about an overspend of £3m in adult social care, particularly in mental health services, and sought information on proactive measures to reduce mental health issues. An adequate response would be provided following consultation with the Adults Social Care Team.

Decision: The report was noted by the committee.

Strategic Performance Report Quarter Four

The committee received the Strategic Performance Report for Quarter Four of 2024-2025, which also included proposed targets for 2025-2026 to 2027-2028. The report summarised the council's service performance and outlined future targets.

During the discussion, members sought clarification on plans to improve areas identified as inadequate, including telephone call answering times, reducing school expulsions, and tackling fly-tipping. It was stated that additional resources would be allocated to improve call answering services. However, reducing school expulsions was acknowledged as challenging due to factors beyond the council's direct control, such as changes in family habits influenced by the pandemic.

Regarding fly-tipping and fixed penalty notices (FPNs), members requested further details on the strategy to reduce fly-tipping, the impact of enforcement actions, and confirmation that FPN data was specific to Harrow and how many had been paid. This information was promised for a later date.

Concerns were raised about the slow pace of pavement repairs and highway improvements, which had led to some residents experiencing falls due to uneven surfaces.

Members inquired about planned improvements to Children's Services ahead of Ofsted's anticipated monitoring visit in September 2025, following the Inadequate rating in the Inspection of Local Authority Children's Services (ILACS) Report. It was explained that the primary area of concern identified by Ofsted related to Care Leavers and the council's engagement with them, with improvements expected to be evident by the monitoring visit.

The committee also expressed concern about the number of households in temporary accommodation and the flagship action on building affordable homes. Members requested an update on plans for affordable housing and strategies to reduce homelessness and the reliance on temporary accommodation.

Decision: The report was noted by the committee.

The meeting concluded at 7:46 pm.