The Policy and Resources Cabinet Committee met on Wednesday, 11 March 2026, to discuss a range of important issues including risk management, performance indicators, commercial strategy, biodiversity net gain, IT licensing, and insurance arrangements. Key decisions were made regarding the extension of the council's insurance programme and the adoption of Microsoft 365 licences and Azure consumption.

Risk Management: Chief Executive's and Deputy Chief Executive's Departments

The committee reviewed the strategic risks facing the Chief Executive's and Deputy Chief Executive's Departments. Brian Collins, Deputy Leader of the Council, presented the report, highlighting that the council operates in a challenging environment with significant uncertainty and organisational pressures. Key corporate risks identified included Asset Management and Degradation (CRR0053), a significant risk of budget overspend (CRR0059), and Cyber and Information Security Resilience (CRR0014). The report detailed the current and target risk ratings, along with mitigating actions. Members discussed the financial sustainability of the council, with Harry Rayner, Leader of the Conservative Group, expressing concern about the rising financial risk exposure. Mr Collins acknowledged the pressures but expressed confidence in the budget's deliverability. The committee was asked to consider and comment on the risks presented.

Key Performance Indicator Review for 2026/27: Chief Executive's and Deputy Chief Executive's Departments

Matthew Wagner, Chief Analyst, presented the proposed Key Performance Indicators (KPIs) and activity indicators for the Chief Executive's and Deputy Chief Executive's Departments for the 2026/27 financial year. The review aimed to ensure KPIs remained aligned with the council's strategic priorities and supported the drive for value for money. A new section for Commercial and Procurement was proposed, including KPIs on procurement savings, spend with SMEs and local businesses, and the number of waivers issued. Changes were also noted for Finance, Governance and Law, Infrastructure, Marketing and Resident Experience, Human Resources and Organisational Development, and Technology. The committee was also informed about the new Local Outcomes Framework published by the Ministry of Housing, Communities and Local Government, and it was proposed that a paper mapping these metrics against KCC's KPIs would be presented in July. The committee was asked to comment on the proposed KPIs and note the recommendation for the future paper on the Local Outcomes Framework.

Implementation of the Commercial Strategy: Feedback on Supplier Day

Clare Maynard, Chief Procurement Officer, reported on the inaugural Kent Supplier Day, which aimed to launch the Commercial Strategy and strengthen engagement with local suppliers. The event was well-attended by over 300 businesses, with 60% being Kent-based SMEs or VCSE organisations. Feedback indicated strong interest in attending similar events, with attendees valuing transparency, early engagement, and networking opportunities. Areas for development included expanding networking, increasing exhibition space, providing more IT practical sessions, and focusing on sector-specific mini supplier days. The report highlighted that market engagement activities are delivered within existing budgets and must remain cost-neutral to KCC, demonstrating improved competition and value for money. The committee was asked to consider and note the report.

Biodiversity Net Gain Overview

Rebecca Anderson, Head of Business Information, Strategy and Assurance, presented an overview of Biodiversity Net Gain (BNG), a new opportunity for KCC to generate income by creating or improving habitats on its land. Developers are legally required to deliver a 10% increase in biodiversity value, and KCC could sell BNG units to developers who need off-site gains. This could provide a long-term income stream and support environmental stewardship. The report outlined key considerations, including a 30-year commitment to habitat management, upfront costs, and the dependence of income on unit sales. It also detailed options for delivery, including in-house provision and outsourced models, assessed against critical success factors such as scalability, financial return, environmental benefits, and deliverability. The committee was asked to note the report and comment on the proposal to use KCC sites for BNG units.

Microsoft 365 Licences Enterprise Agreement and Azure Consumption 2026–2029

Lisa Gannon, Director of Technology, presented a proposal to enter into a new three-year licensing agreement for Microsoft 365 and Azure consumption from July 2026 to June 2029. The report highlighted the council's significant investment in Microsoft technology to support current working arrangements and enhance security. The proposed E5 licensing model offers advanced features including business analytics, enhanced external sharing, and robust security protections. As the council adopts a Cloud First strategy, the Azure platform enables a move away from on-premise storage. The new contract will be procured under the KCS Framework Y23065. The estimated cost for the three-year period is approximately £12.3 million for licences and £3 million for Azure consumption. The committee was asked to consider and endorse, or make recommendations on, the proposed decision.

Work Programme 2026

The committee noted the Work Programme for 2026, which outlined upcoming agenda items and regular reporting cycles for various topics, including performance dashboards, financial updates, and specific reports on areas such as the Kent & Medway Domestic Abuse Strategy and Infrastructure Condition Surveys.

Extension for Kent County Council's Insurance Arrangements

Cath Head, Head of Finance Operations, presented a report seeking endorsement for a Key Decision to extend the council's insurance arrangements for a further two years, through to 31 December 2028. The current five-year Long Term Agreement is due to end on 31 December 2026. Due to the impending changes arising from Local Government Reorganisation (LGR), it is anticipated that a full tender process would not attract competitive prices. The proposed two-year extension, valued at approximately £12 million, would provide continued insurance cover past the anticipated LGR implementation date of April 2028. The extension is permissible under PCR 2015 regulation 72. The committee was asked to consider and endorse, or make recommendations on, the proposed decision.