The Cabinet meeting on Friday, 27 March 2026, saw the approval of a significant Memorandum of Understanding with JP Morgan Chase for a major development in Canary Wharf, alongside the green light for several key contract awards and funding for essential building safety and childcare programmes. Key decisions included the approval of a £11.3 million funding injection for the Maltings and Brewster building safety project, the award of a General Build Measured Term Contract, and the allocation of grants for the Wraparound Childcare Programme.

JP Morgan Chase Canary Wharf Development and Memorandum of Understanding (MOU)

The Cabinet approved the signing of a Memorandum of Understanding (MOU) with JP Morgan Chase, the Ministry of Housing, Communities & Local Government (MHCLG), and the Greater London Authority (GLA) regarding JP Morgan Chase's proposed development at Riverside South in Canary Wharf. This development, estimated to cost £3 billion, is expected to create approximately 3 million sq ft of office space and accommodate up to 12,000 employees, further solidifying London's position as a global financial centre. The project is anticipated to contribute around £9.9 billion to the UK economy over six years and create approximately 7,800 construction jobs.

The council agreed in principle to offer a business rates incentive to JP Morgan Chase as part of the MOU. This incentive is crucial for securing the investment, as JP Morgan has indicated they would not proceed without certainty regarding their business rates liabilities. The potential financial benefit to Tower Hamlets over 25 years is estimated to be between £1 billion and £1.6 billion. The Cabinet delegated authority to the Corporate Director of Resources and the Corporate Director of Housing and Regeneration to negotiate community benefits, including quality jobs and social value initiatives, with JP Morgan Chase. Further detailed modelling and legal advice will be sought before a final decision on the incentive mechanism is made.

Contracts Forward Plan Quarter 4 (2025-2026)

The Cabinet reviewed and approved the Contracts Forward Plan for Quarter 4 of the 2025-2026 financial year. This plan outlines upcoming high-value contracting activities, including five contracts from the Health, Adults and Social Care services directorate. These include:

• Floating Support Service (Prevention of Homelessness): This service aims to prevent homelessness and support residents in maintaining their tenancies, aligning with the Care Act 2014 and the Homelessness and Rough Sleeping Strategy 2024-2029. The contract will be procured via an open tender process.
• Integrated Statutory Advocacy Service (ISAS): This will merge three existing statutory advocacy contracts into a single, streamlined arrangement to improve efficiency and resident access to advocacy support under the Care Act 2014, Mental Health Act, Mental Capacity Act 2005, and Health and Social Care Act 2012.
• Mental Health Supported Living Service: This contract will provide 24-hour supported accommodation for adults with serious mental health needs, aiming to enhance recovery, independence, and reduce reliance on out-of-area placements.
• Substance Misuse Treatment and Recovery Services (Procurement): This will involve re-procuring integrated substance misuse treatment and recovery services, branded as Reset, to build on previous successes and refresh the model within a sustainable funding framework.
• Substance Misuse Treatment and Recovery Services (Extension): This is an extension of existing contracts to ensure continuity of service while the new model is procured.

The Cabinet authorised the appropriate Corporate Directors to award these contracts following appropriate procurement exercises, subject to further reports where necessary.

Award of the General Build Measured Term Contract

The Cabinet approved the award of the General Build Measured Term Contract (MTC) to B&M McHugh. This contract will provide a single contractor for essential maintenance and repairs to the council's corporate buildings and parks infrastructure. The contract, valued at an estimated £1.4m - £1.6m per annum, up to a maximum of £8m, aims to ensure council properties remain safe, compliant, and efficient, moving away from the less consistent outcomes of repeated Request for Quotations (RFQs). This decision aligns with the council's strategic approach to securing best value.

Governance Decision to Support the Completion of the Maltings and Brewster Building Safety Project

An additional £11.3 million in funding was approved for the Maltings and Brewster building safety project, bringing the total project cost to £22.8 million. This funding is essential to complete the final phase of works, which includes replacing external wall insulation (EWI) and structural strengthening. The project, which commenced in 2017, has faced numerous challenges, including government intervention, the COVID-19 pandemic, and the introduction of the Building Safety Act 2022. The decision allows for the continued use of Wates Property Services, the existing contractor, to ensure continuity and avoid further delays and potential litigation. The works are expected to be completed by Autumn 2027.

Wraparound Childcare Programme – Grant Awards for the Creation and Expansion of Places

The Cabinet confirmed allocations and approved funding for Phases 4 and 5 of the Wraparound Childcare Programme. This initiative, part of national childcare reforms, aims to provide term-time childcare from 8 am to 6 pm for primary school-aged children by September 2026. A total of £870,538.96 in grants will be awarded to local providers, creating 804 new wraparound places. This investment is intended to strengthen local childcare capacity, improve access for families, and support parents' access to employment. The methodology for assessing applications and making funding decisions, in line with Department for Education (DfE) requirements, was also noted. Councillor Sabina Akhtar declared an interest as her children attend a school that had applied for funding.