The Public Accounts Select Committee met on Tuesday, 10 March 2026, to review the council's financial monitoring for Period 9, receive an update on the IT and Digital Programme, and reflect on the committee's work over the past four years. Key decisions included noting the Period 9 monitoring report, accepting recommendations from the IT and Digital Programme Update, and noting the review of the committee's scrutiny activity and end-of-administration work programme.

Period 9 Monthly Monitoring

The committee received an update on the council's financial position at Period 9, which indicated a £0.7 million overspend on the General Fund. This overspend is primarily attributed to increased demand within Children and Young People's Services. Ruth Hodson, Head of Service Finance, explained that while some previously unrecorded expenditure had emerged, the majority of the £6.3 million deterioration in the forecast was due to new cases and changes in care packages. Significant efforts are being made within Children's Services to enhance financial monitoring, accountability, and commissioning practices, including weekly review panels and cost-reduction measures.

A notable issue discussed was the 15-month delay in opening the council's in-house residential provision. This delay, attributed to Ofsted registration backlogs affecting councils nationwide, has prevented the timely delivery of planned savings and contributed to increased costs. However, Ofsted has now approved the provision, confirming the delay was due to a national backlog.

The Dedicated Schools Grant (DSG) deficit has also seen an increase, with the High Needs Block overspend growing by £1.6 million. This rise is linked to a spike in Education, Health, and Care Plan (EHCP) applications, driven by concerns over national reforms. The government plans to write off 90% of accumulated DSG deficits up to the end of the 2025/26 financial year, though detailed guidance is still awaited. Lewisham is confident that its deficit is eligible and accurately recorded, but will need to manage the remaining exposure over the next two years.

The Housing Revenue Account (HRA) reported a small overspend, and capital expenditure remains below profile. Council tax and business rates collection are also slightly under target. The committee was assured that despite severe financial pressures, equalities impacts are consistently monitored through various assessments and checks, ensuring that those most in need continue to receive support.

Regarding the Building for Lewisham programme, slippage has occurred primarily due to contractor market contraction, schemes exceeding budget, necessary design or procurement changes, and delays in securing additional grant funding. Affected budgets are being rolled forward to ensure project delivery. The committee was also informed that recent global events could trigger further inflation and supply-chain pressures, potentially increasing material and borrowing costs, which might slow down progress on the Building for Lewisham programme.

IT & Digital Programme Update

Wendy Carr, Director of IT & Digital Services, presented an update on the IT and Digital Programme, highlighting improvements in IT governance through the establishment of directorate IT boards, clearer decision-making processes, and standardised project management. She acknowledged ongoing resourcing challenges and outlined major live projects, including the Windows 11 rollout, enhancements to the housing system, and the forthcoming procurement of a social care case management system.

In response to committee questions, Carr provided examples of improved public-facing IT services. These include new digital systems for bin collections, an increase in bulky waste bookings following website changes, enhancements to pest control and housing online services, and ongoing work to enable residents to request repairs and access more information via the housing portal. The council employs a hybrid approach to IT development, purchasing some systems off-the-shelf (e.g., bin route management) while building or customising others in-house (e.g., pest control, registrar services, and elements of the housing portal).

Carr confirmed that the council is broadly on track with its digital ambitions, having strengthened its infrastructure, initiated cloud migration work, improved data standards, and laid the groundwork for future self-service and integrated systems, aligning with the longer-term 2035 digital strategy. The committee accepted the recommendations and noted the report, suggesting that future IT reports should include brief examples and high-level timelines to illustrate project progress and integration, thereby allowing for clearer strategic oversight without requiring excessive detail.

Review of PASC Scrutiny Activity and Change Work 2022-26

David Austin, Executive Director for Finance, Digital and Corporate Resources, presented a review of the committee's work over the 2022-2026 period. He noted that the committee had fully met its terms of reference, providing consistent scrutiny of financial planning, monitoring, treasury management, and savings. Austin highlighted the committee's focused work on key risk areas, including social care, SEND, capital delivery, council tax and income collection, procurement, and social value, underscoring the robust oversight provided during a period of significant change.

Committee members commented on the wide-ranging nature of the scrutiny undertaken, which had strengthened financial oversight and improved understanding of budget pressures. They also acknowledged the value of clear and accessible reporting from officers, which facilitated effective scrutiny and better decision-making. The positive impact of focused work on Children's Social Care finances was noted, as it improved data quality, informed national lobbying efforts, and contributed to wider sector change. The importance of continued scrutiny of council tax and income collection was also emphasised to ensure fairness for residents and protect funding for essential services.

End of Administration Work Programme Report 22-26

The Chair announced that this was the final meeting of the administration and that members had reflected on the committee's work and future priorities. He confirmed he would not be chairing the committee after the election but would remain available to advise the incoming chair. The committee noted the report.