The Policy and Resources Cabinet Committee of Kent County Council met on Thursday, 13 November 2025, to discuss the adoption of the Kent County Council Commercial Strategy for 2026-2028, review commercial and procurement performance, and receive updates on budget planning and the Department of Local Government Efficiency (DOLGE). Key decisions included the endorsement of the new Commercial Strategy and a significant allocation of funds for essential maintenance at Sessions House.

Adoption of the Kent County Council Commercial Strategy for 2026-2028

The committee endorsed the Kent County Council Commercial Strategy for 2026-2028, a comprehensive plan designed to enhance procurement and contract management to deliver Best Value and support the local economy. The strategy, presented by Deputy Leader Brian Collins, Chief Procurement Officer Clare Maynard, and Corporate Director for Finance John Betts, outlines four key priorities: Delivering Financial Benefits and Return on Investment, Strengthening Supplier Management and Partnerships, Supporting Local Economic Growth and Wider Public Value, and Ensuring Compliance and Transparency.

The strategy aims to embed commercial thinking across the council, aligning with the Council's Strategic Statement and Medium-Term Financial Plan. It builds on the council's previous achievement of the CIPS Procurement Excellence Programme Award and responds to legislative changes such as the Procurement Act 2023. A key focus is on supporting Kent-based businesses, Small and Medium Enterprises (SMEs), and Voluntary, Community, and Social Enterprises (VCSEs), with 32% of the council's third-party spend already directed towards these organisations. The strategy also commits to embedding Social Value into procurement activities, with a dedicated policy being drafted.

During the discussion, Councillor Mark Hood questioned the three-year timeframe of the strategy, asking if it was a point in time for revision or if the council expected to run out of time. Councillor Antony Hook commended the progress in increasing local supplier engagement, highlighting the benefits for jobs, supply chain resilience, and local economic circulation. Councillor Dean Burns sought clarification on how the Department of Local Government Efficiency (DOLGE) would ensure transparency and accountability, while Councillor Wayne Chapman inquired if rescinding the climate emergency declaration would remove bureaucracy for SMEs. Mr. Chamberlain responded that the aim was to lower barriers for SMEs from a financial perspective. The committee noted the general welcome for the strategy, recognising it as a good news story that aligns with the Reforming Kent strategic statement.

Commercial and Procurement Performance Report (Quarter 1 and Quarter 2, 2025/2026)

The committee received an update on the Commercial and Procurement Division's (CPD) performance for the first two quarters of the 2025/2026 financial year. The report highlighted significant financial benefits secured, totalling £5,226,893, excluding the efficiency gain from the Road Asset Renewal Contract (RARC), which alone is projected to deliver approximately £44 million over its 10-year lifetime. This value has been realised through effective negotiation, cost minimisation, and scrutiny of need.

The report also detailed progress in wider public benefit, with 61% of KCC's spend directed towards Kent-based suppliers in Quarter 1, an increase of £25 million compared to the previous year. Spend with SMEs also saw a 17% increase. Efforts are underway to improve the accuracy of reporting on SME and VCSE spend, particularly through the new Oracle Cloud Programme. The CPD is also working to reduce barriers for SMEs and VCSEs, with resources added to the KCC website and a dedicated supplier hub in development.

Councillor Mark Hood raised concerns about the doubling of retrospective waivers, questioning the need for subcontracting. Councillor Paul Chamberlain responded that while there are examples of niche providers like Live Well Kent, further discussion on subcontracting was welcomed. The report also detailed efforts to enhance supplier management and ensure transparency and compliance, noting a rise in retrospective waiver requests, often due to urgent health and safety or safeguarding concerns. The CPD aims to reduce retrospective waivers to zero.

Department of Local Government Efficiency (DOLGE) Strategy, Remit, Governance & Decision-Making Update

An update was provided on the strategy, remit, governance, and decision-making mechanisms for Kent County Council's Department of Local Government Efficiency (DOLGE). Established in May 2025, DOLGE aims to identify efficiencies and savings to ensure value for money for Kent residents, with a relentless focus on cost control. The department works closely with Members and Officers to identify areas for investigation, develop business cases, and make recommendations to Cabinet portfolio holders.

Councillor Alister Brady expressed concerns about the role of the Chair, suggesting that the Chair should not represent the administration's point of view. He also questioned the transparency and accountability of DOLGE, and whether officers were assigned to it. Mr. Collins clarified that secretarial support was provided and defended the administration's progress, stating that you don't turn an oil tank around in six months. He also highlighted the inherited absolute mess of the adult social care budget. Councillor Harry Rayner questioned the distinction between DOLGE and internal audit, to which Mr. Collins responded that internal audit is historical, while DOLGE focuses on future improvements.

The report indicated that DOLGE's work would be guided by the Reforming Kent 2025-28 strategic statement and would involve a whole-organisation approach, challenging all budgetary spend. The department plans to provide bi-annual progress updates to the Policy and Resources Cabinet Committee.

Budget Planning 2026-27 Update

The committee received an update on the budget planning for 2026-27, highlighting a significant financial challenge with an estimated unresolved budget gap of circa £60 million for 2026-27. This figure is before considering the outcome of the Fair Funding 2.0 review and emerging strategic priorities. The report, presented by Deputy Leader Brian Collins and Head of Finance Policy, Planning and Strategy Dave Shipton, outlined the key drivers of spending growth, including price uplifts, demand drivers, cost drivers, and pay increases.

The proposed strategy to balance the budget involves resisting spending growth where possible, maintaining adult social care net growth within affordable levels, identifying further savings and income in other areas, reviewing contributions to reserves, and awaiting the outcome of the Fair Funding 2.0 reforms. The consultation on the budget strategy received nearly double the number of responses compared to the previous year, with a majority supporting increases in both general and adult social care council tax.

Councillor Alister Brady questioned the impact of cutting council tax by 1% on the budget, to which Mr. Collins responded that each 1% reduction would cost approximately £10 million. He also clarified that the council does not use the term black hole for the £60 million deficit, attributing that term to the Chancellor. The report detailed the budget timetable, with a full draft budget to be published for the January cabinet committee meetings, ahead of the County Council budget meeting in February 2026.

Decant of Invicta House into Sessions House Update Report

An update was provided on the decant of staff from Invicta House into Sessions House. The report detailed the compliance and alteration works undertaken, focusing on fire safety regulations, heating, hot water, and lift systems. While many building systems are life-expired, current projections indicate that all works will be completed within approved budgetary limits. The courtyard car park is also undergoing reinforcement to allow limited vehicle access.

The relocation of equipment and staff from Invicta House to Sessions House A Block took place between July and August 2025. The report noted that there has been no net reduction in the number of available desks or meeting rooms. Feedback from staff post-relocation has been broadly positive, with expected minor issues being resolved.

Councillor Mark Hood inquired about the type of train he had travelled on, and the report confirmed it was an electric train. Councillor Alister Brady raised concerns about the car park opposite Sessions House, noting that the lines were painted for much smaller vehicles and suggested repainting. The report confirmed that works on the courtyard car park were due to conclude on 31 October 2025, making the 8 spaces available for allocation.

Work Programme 2025/26

The committee noted the draft Work Programme for 2025/26, which includes regular items such as budget planning, performance dashboards, risk management, and contract management updates. The programme also lists items that have not yet been allocated to a specific meeting, including suggestions from Councillor Alister Brady regarding LATCOs and Oracle updates. The meeting also marked the final Policy and Resources Cabinet Committee meeting for John Betts, Corporate Director for Finance, who was thanked for his service.