The Audit and Performance Committee met to discuss the 2025/26 work programme, review performance and finances from the first quarter of the year, and receive updates on the council's workforce and procurement activities. The committee noted a projected £7.788m overspend in the General Fund, mainly due to temporary accommodation costs and rising children's social care costs. Members also approved the Annual Report of the Audit and Performance Committee to be forwarded to the Full Council for information.

Here's a more detailed look at the key discussion points:

Q1 Performance Report

The committee reviewed the Q1 25-26 Audit and Performance Committee Report, which provided an overview of the council's performance in the first quarter of the 2025/26 financial year. Of the 91 reported key performance indicators (KPIs):

• 79% were on track to meet their year-end target
• 16% were at slight risk of missing their target
• 2% were currently off-track.

The report also highlighted various initiatives and challenges across different council departments:

• Adult Social Care & Public Health: The committee heard about the use of AI software to reduce the time spent on administrative tasks for frontline practitioners.
• Children's Services: Noted the launch of a new Trailblazer project to support care leavers into employment, and a tabletop games convention that saw 550 people attend.
• Corporate Services: Noted the successful completion of a programme to reimagine Our Westminster Way, the council's organisational culture framework. Also noted that an independent planning inspector praised the council for its engagement with stakeholders regarding the City Plan Partial Review.
• Environment and Communities: Noted the opening of the Westminster Climate Fund and a Community Resilience Training programme for local community leaders.
• Finance & Resources: Noted the expansion of the Report It Assistant, which has reduced average reporting time from 3.5 minutes to 1.5 minutes.
• Housing and Commercial Partnerships: Noted the purchase of 530 homes through spot and bulk acquisitions in FY 24/25 to be used as temporary accomodation, and the adoption of a new Tenancy Strategy and Tenancy Policy focused on long-term housing stability.
• Regeneration, Economy and Planning: Noted that Westminster City Council received a direct allocation of almost £1.8million via the UK Shared Prosperity Fund¹ (UKSPF).

The committee also discussed risks facing council services, including climate change, financial sustainability, safeguarding, and major incidents.

Q1 Financial Monitoring

The committee reviewed the Q1 Financial Monitor 2025-26, which presented the council's financial position at the end of Quarter 1. The forecast General Fund revenue outturn was a projected overspend of £7.788m, with potential further pressures of £7.980m identified. The main reasons for the overspend were increased demand and cost of Temporary Accommodation and increased children's social care costs.

• Temporary Accommodation Pressures: The increasing demand for temporary accommodation (TA) was highlighted as a significant financial pressure, with the number of households in TA rising to 4,307.
• Children's Services: There was a £3.3m forecast overspend in Children's Services due to rising placement costs.
• Savings: The 2025/26 budget included £31.925m of savings, with 98.54% either achieved or on track to be achieved.
• Council Tax and Business Rates: As at June 2025, the business rates collection rate to date is 35.70%, which is 1.31% higher than the same month last year. The council tax collection rate for June 2025 is 36.12%, which is 0.98% lower than the same month last year.

Workforce Update

The committee received a Workforce Update, summarising key workforce data, including the results of the 2024 Our Voice staff survey, pay gaps, and demographic information. Key points included:

• Diversity: As of March 2025, 59% of staff identified as female, and 45% identified as coming from a global majority background.
• Pay Gaps: The council has made progress in reducing both the ethnicity and gender median pay gaps over the last six years.
• Staff Survey: The overall Engagement Index for 2024 was 79%, an increase of 2% from 2023.

The committee also reviewed the council's Workforce Profile Report 2025 and Gender and ethnicity pay gap report 2023- 24.

General Procurement Update

The committee received a General Procurement Update 2024-25, which provided an overview of procurement and contract management activities at the council. The report noted the enactment of the Procurement Act 2023² and the launch of a new Procurement Code. In 2024/25, the council supported 444 projects, issuing 191 Invitations to Tender and awarding 198 new contracts. 37% of these awards were made to SMEs.

The committee also discussed compliance with procurement policies, including exceptions to the policy, purchase orders raised without a valid contract in place, and commitments to the Living Wage and Responsible Procurement.

Contract and Supplier Performance Report

The committee reviewed the Contract and Supplier Performance Report 2024-25, which focused on the performance of the council's largest suppliers. The council's total third-party expenditure for 2024/25 was £880 million, with 80% concentrated in the Platinum and Silver tiers (contracts worth £2 million or more). Quarterly surveys indicated that 95% of suppliers are performing well or satisfactorily. The report also highlighted the council's approach to managing procurement risk and enhancing the commercial offer of procurement.

Councillor Aziz Toki, Chair of Licensing, closed the meeting by thanking colleagues for their commitment as well as the officers who regularly provide reports to the Committee.