The Resources and Public Realm Scrutiny Committee meeting on 4 November 2025 reviewed the council's Quarter 2 financial forecast, noting a projected overall overspend of £14.5 million across the General Fund, Dedicated Schools Grant, and Housing Revenue Account. The committee also discussed the emerging Procurement Strategy, including a new definition of local suppliers, and the draft Social Value Policy, which aims to embed social value across all council activities. Additionally, the committee received updates on the Voluntary, Community and Social Enterprise (VCSE) sector in Brent and the council's work programme.

Quarter 2 Financial Forecast 2025/26

The committee was presented with the Quarter 2 financial forecast for 2025/26, which indicated an overall projected overspend of £14.5 million across the General Fund revenue budget (£9.2m), the Dedicated Schools Grant (£2.7m), and the Housing Revenue Account (£2.6m). Councillor Mili Patel, Deputy Leader and Cabinet Member for Finance and Resources, acknowledged the challenging economic environment and the pressures faced by local authorities, but highlighted Brent's efforts to maintain financial resilience.

Key pressures identified include:

• Adult Social Care: An overspend of £1.2 million is forecast due to increasing demand and complexity of cases, with average placement costs rising above expectations. Mitigation strategies include exploring options for clients to move into more suitable accommodation, reviewing eligibility for Continuing Healthcare (CHC) and Section 117 funding, and ending the use of Bed and Breakfast (B&B) accommodation for temporary housing.
• Children, Young People and Community Development: A £2.2 million overspend is projected, primarily driven by rising costs in placement services for children in care, particularly residential, remand secure, and welfare secure placements. Delays in opening an in-house residential children's home, initially due to Ofsted registration and subsequently due to damage from an accident, have exacerbated these pressures.
• Housing Needs and Support: A significant £5 million overspend is forecast, largely within the Housing Needs and Support service, due to high demand for services and a lack of affordable Private Rented Sector (PRS) offers. Despite increased funding and the addition of new properties to the council's portfolio, demand continues to grow.
• Housing Revenue Account (HRA): A £2.6 million pressure is forecast before the utilisation of reserves. This is attributed to high inflation, rising interest rates impacting borrowing costs, increased demand for repairs and maintenance, and challenges in securing adequate government funding for environmental and fire safety works.
• Capital Programme: An overall variance of (£17.4 million) is reported, comprising a £1.9 million underspend and £15.5 million slippage. This is influenced by factors such as delays in signing new building contracts, extended timeframes for technical modelling, and the reprofiling of budgets due to contractor changes and unforeseen issues.

The council is implementing enhanced spending controls and has established a Budget Assurance Panel to manage financial pressures. Councillor Patel emphasised that while Brent is not in the same critical financial situation as some other councils, further actions are necessary to return the budget to a sustainable position.

Procurement Improvement Programme and Emerging Procurement Strategy

The committee received an update on the Procurement Improvement Programme (PIP), which aims to address recommendations from a recent LGA peer review and audit findings. The PIP is structured around several workstreams, including strategy and policy development, culture and capability building, and governance.

A new Procurement Strategy is being developed, aligned with the Borough Plan, the Council's Transformation agenda, and the Procurement Act 2023. The strategy's emerging priorities focus on:

• Community Wealth Building: Increasing spend with local SMEs and VCSEs, supporting their access to contracts, and promoting local employment and fair pay.
• Community Power: Working in partnership to strengthen communities, tackle inequality, and leverage social value opportunities through a place-based approach.
• Commercial Capability, Leadership and Innovation: Strengthening commercial skills, improving contract management, fostering innovation, and investing in workforce development.

The committee was asked to comment on the proposed direction of travel for the strategy and consider options for defining local suppliers. Several definitions were presented, including organisations strictly within Brent's boundaries, those within the West London Alliance, or those within a defined radius. The report also outlined recommendations to improve engagement with local businesses, such as publishing an annual procurement plan and holding Meet the Buyer events.

Social Value: Draft Policy and Whole-Council Approach

The committee discussed a draft Social Value Policy, which proposes a shift from a procurement-only focus to a whole-council, place-based model. This approach aims to embed social value across all council activities, ensuring that spending delivers wider social, economic, and environmental outcomes.

Key features of the proposed approach include:

• Priorities and Guiding Principles: Focusing on embedding values, local and community-led initiatives, relevance and proportionality, and placing the community at the heart of social value delivery.
• Measurement: A balanced approach using both quantitative metrics and qualitative outcomes, with an annual Social Value Impact Report to be published.
• Tools and Resources: Development of platforms like Match My Project and the Social Progress Index, alongside new guidance, training, and a Social Value Charter.

The policy aims to support the delivery of the Brent Borough Plan 2023-27 by driving inclusive growth, health equity, environmental sustainability, and community participation. The committee was asked to provide feedback on the draft policy and its proposed priorities.

Voluntary, Community and Social Enterprise (VCSE) Sector in Brent

An update was provided on the development and support of the VCSE sector in Brent. The report highlighted that the current organisation supporting the voluntary sector, CVS Brent, is undergoing a review, with recommendations expected soon. The council is considering the appropriate level of oversight and leadership it should have over the sector, aiming for a balance that allows the sector to thrive while aligning with council priorities.

Key points discussed included:

• Contract Review: The contract with CVS Brent is due to expire in April 2026, with a review process underway.
• Capacity Building: A focus on effective capacity building within the borough was identified as a key need.
• Duplication of Effort: Concerns were raised about potential duplication of effort between council-led activities and those undertaken by CVS Brent, particularly given limited financial resources.
• Future Offer: The council anticipates a new tendered offer for support to the voluntary sector, with themes likely to include information, advice, guidance, training, and networking opportunities.
• Social Value and Property: Discussions touched upon how social value commitments could be integrated into procurement processes and how existing VCSE organisations renting from Brent could be supported, with a pilot for reduced market rents on new lettings being explored.

The committee reiterated previous recommendations regarding ethical lettings and affordable housing, and emphasised the importance of robust contract management.

Resources & Public Realm Scrutiny Committee Work Programme 2025/26

The committee reviewed its work programme for 2025/26. Amendments were noted, including the rescheduling of the Safer Brent Partnership Report to April 2026 and the Approach to Tackling ASB Across Brent to January 2026. The Kerbside Management Scrutiny Task Group findings are expected to be presented in November 2025.

Scrutiny Progress Update - Recommendations Tracker

The committee reviewed the Scrutiny Recommendations Tracker, noting the progress made on previous recommendations, suggestions for improvement, and information requests. The tracker detailed responses from council departments and external partners, with several recommendations accepted and ongoing work highlighted. Key areas of ongoing work included advocacy for local government finance reform, a review of procurement and commissioning processes to enhance community wealth building, and efforts to improve council tax collection rates and rebuild financial reserves.

The meeting confirmed that the council is actively working to strengthen the link between the Strategic Community Infrastructure Levy (SCIL) programme and borough plan priorities, and is advocating for greater local government autonomy in generating and spending resources. The Procurement Improvement Programme is progressing, with a new Procurement Strategy and Social Value Policy in development. Efforts to improve council tax collection are underway, including enhanced data analytics and communication tools, while the council is also prioritising rebuilding financial reserves.