The Scrutiny Streets & Environment Sub-Committee met on Monday 23 March 2026 to discuss the highways maintenance contract, the period eight financial performance report, and an update on streets and environment enforcement. Key decisions included noting the period eight financial performance report, which indicated a forecast underspend, and reviewing the progress of the streets and environment enforcement strategy, which has seen an increase in activity and the introduction of new technologies.

Highway Maintenance Term Service Contract – Procurement Update

The committee received an update on the Highway Maintenance Term Service Contract, which is currently held by FM Conway and was initially let in 2018 for seven years, with an option to extend for a further 10 years. An extension to September 2026 was granted in May 2025, with enhanced performance indicators and contract governance arrangements put in place. The current annual spend on this contract is approximately £16 million.

Officers proposed a second one-year extension to the contract, running until September 2027. This extension is subject to a delegated decision by the Corporate Director and would be conditional on negotiating further improvements with FM Conway, particularly regarding budgetary savings and financial consequences for performance failures. This extension would also allow sufficient time for member engagement in detailed service specification work before a full procurement process begins later in 2026. Early contractor market engagement in January 2026 indicated a strong competitive field of potential contractors.

During the discussion, concerns were raised about the quality of pothole repairs, with a focus on ensuring that repairs are not just completed within a certain timeframe but are also of a high standard. The committee heard that a regular inspection regime is in place, and that inspectors check the materials used. However, it was acknowledged that the contract management needed to be more robust, and that this would be a focus for the new contract.

Questions were also raised about the maintenance of gullies, including the accuracy of gully mapping, data capturing software, and the prioritisation of gully cleansing. The committee was informed that a two-yearly road survey captures gully information, and that work is programmed based on the condition of the gullies. Challenges were noted regarding access due to parked cars, and potential solutions such as clearing gullies during road resurfacing were discussed. The High Waste Capital Program for 2026-27 includes significant sums to address backlogs in gully cleansing.

The committee also discussed the procurement strategy, with a focus on the reasoning behind the proposed one-year extension. Officers explained that the extension was necessary to allow adequate time for a proper procurement process, including member engagement and mobilisation of a new contractor. It was also highlighted that the extension was expected to yield budgetary savings and that there would be no detriment to the council in terms of financial savings or service quality. The potential for innovation, such as AI technology, was also discussed, although it was noted that contractors might hold back on introducing all innovations during an extension period to maintain a competitive advantage in future procurements.

Regarding contract management, improvements had already been made as part of the first extension, including increased regular meetings between council officers and FM Conway management. These meetings range from weekly operational meetings to quarterly governance meetings involving senior management. The committee was assured that the current contract management arrangements were robust and that no further changes were planned as part of this extension.

Finally, the committee discussed penalties for contract underperformance. While the contract is designed to work in partnership, the option for penalties exists. The current fines for default notices range from £250 to £1,800, but it was noted that these fines might be too low for a contract of FM Conway's size. The possibility of including step-in rights in future contracts, where another contractor could be brought in if the current one consistently fails, was also mentioned.

Period 8 Financial Performance Report

The Sub-Committee reviewed the Period 8 Financial Performance Report for the Sustainable Communities, Regeneration & Economic Recovery (SCRER) Directorate. The report indicated a forecast underspend of £600,000 for the directorate, with a specific underspend of £400,000 related to street and environment services. This underspend was attributed, in part, to savings achieved in the street lighting area through a reduction in electricity costs following the change to LED lanterns and extended periods of reduced lighting intensity.

The committee noted that the directorate was on track to deliver its savings targets, despite unexpected challenges. The main stabilization plan for the directorate, focused on parking, had a target increase of £1 million, and at Period 8, this stood at £1.3 million. Officers expressed confidence in achieving close to this target by the end of the financial year.

Questions were raised about the street lighting savings, and it was explained that the changes to LED lanterns and extended dimming periods had contributed to the reduction in electricity costs. The committee also enquired about plans to extend the programme of installing more LED lighting to continue cost reductions, and was informed that this was included in the directorate's Medium Term Financial Strategy (MTFS) for the next financial year.

Streets & Environment Enforcement Update

The committee received an update on the council's strengthened approach to environmental compliance and enforcement, aiming for a zero tolerance approach to environmental crime. This includes strengthening enforcement capacity, introducing a community compliance team, improving data intelligence, and ensuring a more targeted and consistent response to resident concerns. The report highlighted a move away from a reactive model, with community compliance officers using Love Clean Streets data to inform patrol locations and identify hotspots.

Significant progress has been made in the past year, including the introduction of targeted CCTV deployment and better use of footage from residents and businesses. The council has also adopted a broader approach to the causes of environmental crime, with proactive measures for business waste compliance and the introduction of mobile recycling centres.

The report detailed the number of fly-tip reports received through Love Clean Streets and the process for excluding duplicate or incorrect reports. In February, 6,400 reports were received, with 987 excluded, leaving a baseline of 5,400. Of these, 87% were cleared within the Service Level Agreement (SLA). Repeat patterns of fly-tipping were identified in areas such as Bench Manor, Thornton Heath, West Thornton, and Norbury.

Enforcement activity has increased, with over 310 Fixed Penalty Notices (FPNs) issued for various environmental offences between April and February. The committee discussed the use of FPNs as a deterrent and the process for issuing them. Concerns were raised about the low payment rate of FPNs and the potential for penalties to be too low to be effective. The committee was informed that the council was moving towards prosecuting unpaid penalties and that the process was being refined to ensure accuracy and reduce issue errors.

The use of CCTV has been increased, with 19 cameras deployed on housing estates and five mobile deployable CCTV cameras in hotspot locations. The council is also procuring an additional five mobile cameras. The committee discussed the effectiveness of CCTV and the challenges of identifying offenders, particularly in cases where vehicles are not identifiable. The possibility of covert surveillance and the use of a wall of shame to publicise enforcement outcomes was also discussed.

The committee also discussed trade waste compliance, with a new digital process introduced for businesses to confirm their arrangements. Plans are in place to introduce different coloured bags for flats above shops to distinguish between household and trade waste, and designated collection points with clear signage are being considered.

Work with housing and estates teams to address fly-tipping on estates is ongoing, including the redesign of bin sheds and the education of residents. The issue of abandoned vehicles on estates was also discussed, with a process in place to identify registered keepers and work with housing teams for resolution.

The committee discussed the effectiveness of the Love Clean Streets app, including efforts to mitigate duplicate reports through AI technology and improved address details. Concerns were raised about the complexity of categorising waste events on the app, and the council is working to simplify the process and improve data accuracy. The council is also collaborating with other local authorities using Love Clean Streets to share best practices.

The committee discussed the challenges of fly-tipping on private land and the council's approach to working with landowners to ensure clearance and secure premises. The development of a digital map to denote council-maintained land on Love Clean Streets was also mentioned to improve the accuracy of reporting.

The committee also discussed the use of mobile recycling centres, with a pilot in South Norwood designed with housing in mind. The impact of these centres on fly-tipping rates is being monitored, and lessons learned from the pilot are being gathered.

Finally, the committee discussed the financial implications of enforcement activity, with a focus on the cost-effectiveness of issuing FPNs and the potential for cost savings through reduced fly-tipping and more efficient waste management. The committee noted that the enforcement team is expected to become self-funding in the future.

Cabinet Response to Scrutiny Recommendations

The Sub-Committee noted the Cabinet's responses to previous recommendations made by the committee. The responses indicated that some recommendations were Partially Accepted or Already in Progress. For example, the recommendation to publish details on road cleansing zones and schedules was partially accepted, with work underway to design a format for presenting this data. The recommendation for increased resident education on reporting waste events was noted as Already in Progress, with ongoing work with the communications team and Love Clean Streets. The recommendation to explore AI implementation in the Love Clean Streets app was also noted as Already in Progress, with investigations into AI technology and resident workshops underway.

Scrutiny Work Programme 2025-26

The Sub-Committee reviewed its completed work programme for 2025-26 and considered items for the 2026-27 Work Programme. Several potential items were discussed for inclusion in the next year's programme, including Tree Mapping, the Climate Action Plan, Enforcement and the Abandoned Vehicle Service, the Love Clean Streets App, Flood Risk Management, the Highways Maintenance Contract, the Waste Contract and Beddington Incinerator, Mayor's Business Plan Key Performance Indicators, Local Plan Implementation, Air Quality, Electric Vehicle Charging Point Strategy rollout, Active Transport, and the Blitz Clean Programme. The committee sought clarification on which Cabinet brief Climate Adaptation and Mitigation sat under.