The Overview & Scrutiny Committee was scheduled to discuss the Provisional Local Government Finance Settlement, the regeneration of the Old Kent Road area, and investment in rail infrastructure through the Community Infrastructure Levy. The committee was also set to review its work programme for the upcoming year.

Budget Local Government Settlement

The committee was scheduled to receive a verbal update from Councillor Stephanie Cryan, Cabinet Member for Equalities, Democracy & Finance, and officers regarding the Provisional Local Government Finance Settlement. This briefing note outlines the anticipated impact of the settlement, which is published annually and provides local authorities with their provisional grant allocations. The report indicates that while there may be a funding boost in 2026/27, Core Spending Power is expected to decrease in the following two years. The council anticipates a funding gap of around £80 million over the three years from April 2027, with officers working to identify savings. The briefing highlights that growth in council tax is projected to offset reductions in central government grants, but the council's own projections for council tax growth are more cautious than those of the government. A consultation on the proposed settlement is underway, and the council intends to respond, particularly concerning council tax assumptions.

Community Review Panel - Regeneration Old Kent Road

An update was scheduled regarding the Community Review Panel and the regeneration of the Old Kent Road area. The Old Kent Road (OKR) opportunity area has been undergoing a transformation process since 2016, aiming to deliver new homes, social infrastructure, and jobs. The report highlights that the OKR is delivering homes at a faster rate than comparable schemes in London and is providing over 50% affordable housing, with 32% of habitable rooms designated for social rent. The report details extensive public engagement over nine years, leading to changes in the draft Area Action Plan (AAP), including increased park space and revised tall building strategies. A Community Review Panel, comprising local residents and business owners, was established in 2020 to review planning applications and council strategies, and its feedback has influenced development. The report also details the use of Section 106 (S106) monies and Community Infrastructure Levy (CIL) funds for improvements to public parks, the bus network, and cycle and pedestrian provisions. Significant investment from the Future High Street Fund (FHSF) has also been used for projects such as the Livesey Exchange and the refurbishment of the Kentish Drovers mural. The AAP promotes the delivery of a District Heating Network (DHN) and outlines plans for new open spaces, with the first phases of Ruby Triangle park and Surrey Canal Park anticipated to be completed in 2027. The AAP was submitted for examination in public, expected in September 2026. The report also addresses the challenges in traditional residential development, leading to a pivot towards student and co-living schemes, with policies in place to ensure these contribute to mixed and inclusive communities and deliver affordable housing.

Rail Infrastructure - Community Infrastructure Levy (CIL) Investment at Train/Tube Stations

A report was scheduled concerning the use of Community Infrastructure Levy (CIL) funds for investment in train and tube stations. The report details Southwark's 21 stations, including the planned new stations on Old Kent Road if the Bakerloo Line Extension (BLE) proceeds. It highlights that transport capacity and accessibility are significant issues for residents and businesses. The report outlines past and ongoing investments in various stations, including London Bridge, Blackfriars, Elephant and Castle, Surrey Quays, Denmark Hill, Peckham Rye, and South Bermondsey. Significant investment has been made at Elephant and Castle for a new tube station, funded by CIL, which is future-proofed for the BLE. The Jubilee station at Canada Water and the upgrade of the Overground/Windrush Line at Surrey Quays are noted as instrumental in supporting growth. Peckham Rye station is undergoing a phased upgrade to improve accessibility. The report also details the progress and funding considerations for the Bakerloo Line Extension, noting that technical work is ongoing and funded, with Southwark committing 50% of its strategic CIL to the project. The delivery of the 10,500 homes planned for Phase 2 of the Old Kent Road regeneration is dependent on the confirmation of the BLE.

Work Programme 2025-26

The committee was scheduled to note the work programme for the Overview and Scrutiny Committee and its commissions for the 2025-26 municipal year. The report outlines the terms of reference for the committee and its four established commissions: Education and Local Economy, Environment, Community Safety and Engagement, Housing, and Health and Social Care. The work programmes are designed to focus on key issues where scrutiny can have a significant impact and align with the council's strategic priorities. The agenda items for upcoming meetings in the 2025-26 municipal year were also listed, including discussions on Council Delivery Plan Performance, the Budget Local Government settlement, the Old Kent Road regeneration, and rail infrastructure CIL investment.