The Performance and Finance Scrutiny Sub-Committee of Harrow Council was scheduled to discuss the Indices of Deprivation 2025, a performance update for Quarter 2 of the 2025-26 financial year, and the final revenue budget for 2026/27 alongside the Medium Term Financial Strategy to 2028/29. The meeting also included a review of the revenue and capital budget monitoring report for the 2025-26 financial year, as well as any other business that could not otherwise be dealt with.

Indices of Deprivation 2025

The sub-committee was scheduled to consider a report summarising the findings of the English Indices of Deprivation 2025, published by the Ministry of Housing, Communities and Local Government. This report highlights changes from the 2019 indices, particularly the impact of a revised methodology that now measures household income after housing costs. This change is noted as having a significant, and in some areas acute, impact across England, including Harrow, which has seen a drop in its national and London rankings for deprivation. The report indicates that Harrow has become more deprived nationally and in London, with a particularly sharp decline in the Income Domain ranking. The change in methodology is welcomed as it is considered to better reflect the reality of living costs for Harrow residents, particularly those in the private rental sector. The report also details changes to the seven domains that comprise the Index of Multiple Deprivation (IMD), including updates to indicators for Income, Employment, Education, Skills & Training, Health Deprivation & Disability, Crime, Barriers to Housing & Services, and Living Environment. The financial implications of these indices are noted, with the updated 2025 indices having benefited Harrow's grant allocation under the Fair Funding Review (FFR). The report also touches upon council priorities, stating that the improved information from the IoD 2025 is relevant to all three council priorities: A council that puts residents first, A borough that is clean and safe, and A place where those in need are supported.

Performance Update

The sub-committee was set to receive an information report providing a summary of the Council and service performance for Quarter 2 of the 2025-26 financial year, along with information on progress made since that period. The report was expected to address performance against the objectives and Flagship Actions outlined in the Council's corporate plan, 'Restoring Pride in Harrow,' organised under the three key priorities: A council that puts residents first, A borough that is clean and safe, and A place where those in need are supported. The report included a RAG (Red-Amber-Green) summary of performance at the end of Quarter 2, indicating the status of Flagship Actions and performance indicators. Key achievements highlighted included improvements in resident satisfaction surveys, the performance of the new General Enquiries team with reduced wait times, and cybersecurity enhancements. Challenges noted involved interruptions due to an IT supplier acquisition, performance issues with a new Housing IT system, and meeting targets for Information Access requests. The report also provided updates on Red Indicators where available, based on provisional Quarter 3 data. Additionally, the committee requested data on Elective Home Education (EHE), which was included in Appendix 4 of the report.

Final Revenue Budget 2026/27 and Medium Term Financial Strategy to 2028/29

A significant item on the agenda was the final revenue budget for 2026/27 and the Medium Term Financial Strategy (MTFS) to 2028/29. This report was to set out the final budget, adjusted since the draft version presented to Cabinet in December 2025, taking into account information from the Provisional and Final Finance Settlements. The report highlighted the challenging financial environment faced by local authorities, with London boroughs needing to make substantial savings. The Fair Funding Review 202.0 was a key factor, changing how funding is allocated and aiming for a simpler, more transparent system. The report detailed the impact of these changes on Harrow's grant allocation, noting a favourable movement due to the updated Indices of Deprivation 2025, which now incorporate housing costs. The budget proposals included recommendations for Council Tax increases: a core increase of 2.99% and a further 2% for the Adult Social Care Precept, both in line with government expectations. The report also outlined the budget process, including key activities and announcements that impacted the budget, such as the Spending Review, the Fair Funding Review consultation, and the Autumn Budget. The financial implications of these changes were detailed, including the revised budget gaps for the MTFS years. The report also covered the proposed use of reserves, the Council Tax Model Resolution, Members' Allowances Scheme, and the Annual Pay Policy Statement.

Revenue and Capital Budget Monitoring Report 2025-26 Q3

The sub-committee was also scheduled to review the Council's projected revenue and capital outturn positions for the 2025-26 financial year, based on information available at the end of Quarter 3 (31 December 2025). The report detailed the forecast revenue budget outturn, indicating a net overspend of £2.869m, which would require drawdown from the budget planning reserve if not mitigated by year-end. Significant pressures were identified in Adult Social Care, Temporary Accommodation, and Children's Services, alongside challenges in parking income. Corporate budgets showed an underspend, partially offsetting directorate overspends. The report also provided an update on the capital programme, with a forecast spend of £72.419m against a budget of £141.149m, indicating significant slippage into the next financial year. The Housing Revenue Account (HRA) was forecast to have a surplus of £1.964m, exceeding the budgeted surplus. Cabinet was requested to note these outturn positions, approve proposed additions and amendments to the Capital Programme, and note updates on the Council's Trading Companies and the Harrow Strategic Development Partnership.

Other Business

The agenda also included a provision for Any Other Business, which could encompass any matters that could not otherwise be dealt with.

The meeting was open to the public and could be viewed online via the London Borough of Harrow webcasts.