The Corporate Committee of Lambeth Council met on Thursday 29 January 2026 to discuss a range of financial and operational matters. Key topics included an update on the council's action plan in response to external auditor recommendations, a review of the risk management strategy and policy, and progress reports on internal audit and counter fraud activities. The committee was also scheduled to consider the calculation of the council tax base for the upcoming financial year and the council's pay policy statement.

Update on the Council's Action Plan Response to External Auditor Recommendations

The committee was scheduled to receive an update on the council's action plan, developed in response to recommendations from external auditors, Forvis Mazars. This plan addresses the council's financial position, including the 2024-25 financial year, the 2025-26 budget, and the Medium-Term Financial Strategy (MTFS). The report detailed actions being taken to enhance budget planning, monitoring, and reporting arrangements, with a focus on rebuilding reserves and addressing the cost of debt. Several actions related to savings and efficiencies in 2024-25, spending controls, and financial monitoring reports were noted as having been implemented and closed. The report also outlined ongoing actions concerning the replenishment of general fund and HRA reserves, the review of the capital programme to reduce borrowing, and the development of a financial recovery plan for the Housing Revenue Account (HRA). The council's progress in reducing the unfunded budget gap within the MTFS and its response to the Kerslake report regarding bringing housing services in-house were also to be discussed.

Risk Management Strategy and Policy (Annual Review)

The committee was set to review the council's Risk Management Strategy and Policy for 2023-26. This annual review included updates to the strategy's introduction and benefits of risk management, alongside new information regarding risk appetite and maturity development for 2026. The report also proposed an updated table for Levels of Organisational Risk and included links to further risk management guidance. Future plans included a refresh and relaunch of the risk appetite framework, involving consultation with senior leadership and cabinet, and a risk maturity assessment planned for 2026/27. The strategy aims to embed a risk management culture, ensure consistent application of risk processes, provide strategic leadership, and develop best practices in risk management to improve outcomes for residents.

Internal Audit Progress Report 2025-26

An update on the progress of the Internal Audit plan for the 2025-26 financial year was scheduled. The report highlighted improvements in responsiveness to internal audit and the implementation of management actions, with overall implementation rates for high and medium priority actions showing a positive trend. However, a significant proportion of open actions remained overdue. The report detailed the progress of various audits, including those related to schools, safeguarding, cyber security, and contract management. Assurance opinions issued since the last committee meeting were also to be presented, with a balance indicating a positive trend towards a reasonable assurance opinion for the year. The committee was also to receive an update on management's progress in implementing agreed actions arising from internal audit recommendations.

Counter Fraud Progress Report 2025-26

The committee was to receive an update on counter fraud activities for the 2025-26 financial year. The report indicated a higher rate of new investigations compared to the previous year, although active investigations were also up due to fewer closures. While tenancy recommendations had increased, the number of recoveries was lower at this stage, with an expectation that more recoveries would be secured by Housing and Legal. Internal investigation reports were higher despite a reduction in staff. Fraud prevention reviews were being conducted in high-risk business areas, including homelessness and contract management. Counter fraud training was being rolled out to contract managers, and the council's membership in the Government Counter Fraud Profession was noted, with peer reviews indicating the service is well-run and a centre of excellence. Two recommendations from a peer review were being implemented, with an updated Counter Fraud Strategy to be shared at the March 2026 meeting.

Pay Policy Statement 2026-2027

The committee was asked to recommend the Pay Policy Statement for 2026-2027 to Full Council for approval. This statutory document outlines the council's policy on the remuneration of Chief Officers and the relationship between senior pay and the wider workforce. The statement confirmed the pay ratio between the highest paid officer and the lowest paid employee, and included headline gender pay information, showing a reduction in the gender pay gap. An appendix detailed the number of employees earning above specified salary thresholds, noting an increase attributed to incremental progression and the national pay award.

Calculation of Council Tax Base and National Non-Domestic Rates Return (NNDR1) 2026/27

This report presented the statutory information required to set the council's council tax base for 2026/27. It sought approval to set the council tax base at 116,594 (a decrease from 118,324 in 2025/26) and to delegate authority to the Corporate Director of Resources to finalise the business rates tax base. The report detailed factors impacting the council tax base, including the proposed Council Tax Support Scheme, the collection rate, and council tax discounts, exemptions, and premiums. The proposed banded scheme for Council Tax Support was designed to target support to those most in need and reduce administrative burden. The report also outlined the council's approach to empty homes premiums and second homes, recommending a 100% premium for both.

Trusts of the Charitable Property Specified in Paragraph 1 of The Order of The High Court (Claim Number 11046/2008) (previously known as the Tower Hamlets Environmental Trust (Central Hill Estate)

The committee was asked to approve the trustee's annual report and accounts for the charity, which benefits the Central Hill Estate. The report stated that the charity's net assets were £331,677 as of 31 March 2025, with income solely from interest. No expenditure was incurred as no suitable projects were identified within the trust's charitable objectives. The report noted that while residents had previously expressed concerns about the trust's operation, the approval of the annual report and accounts was a critical legal and administrative duty.

Procurement and Contract Management Update

This report followed up on concerns raised by the committee in November 2025 regarding contract management, purchase order (PO) compliance, and social value. The report detailed actions being taken to address these issues, including reinstating Contract Purchasing Agreement (CPA) controls, strengthening PO compliance through mandatory pre-approval and automated alerts, and improving contract management practices through training and a standardised monitoring agenda. Social value monitoring was to be centralised within the Procurement Team, and the Procurement Board was to be re-purposed with senior representation from all directorates to enhance governance and oversight. Management actions were outlined to improve performance and compliance, with progress to be reported in future procurement updates.