Cabinet - Monday 28 October 2024 6.00 pm

October 28, 2024 View on council website  Watch video of meeting or read trancript
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Summary

The Cabinet noted the minutes of the previous meeting and the minutes of the Cabinet Procurement and Insourcing Committee. They approved the Overall Financial Position Report - August 2024, the Capital Update and Property Disposals And Acquisitions report, a proposal for a Hackney Council Agency Joint Venture with Commercial Services Kent Ltd (CSKL), the City and Hackney Safeguarding Adults Board Annual Report 2023-24, and an updated list of appointments and nominations.

The Overall Financial Position of Hackney Council

The overall financial position report presented to the Cabinet showed an in-year overspend of £36.958m. The report described this as a major challenge to our financial sustainability going forward, and attributed it to rising demand and costs in the provision of temporary accommodation for homeless people and social care. The report stated that:

In simple terms if we were to do nothing and we were to continue to overspend at the current rate our reserves will be exhausted in less than 3 years.

The report set out a number of planned mitigations, including a review of agency worker assignments, a review of non-essential spending, and recruitment controls.

The Cabinet approved a number of savings proposals for the years 2025/26 to 2027/28 to be implemented across the General Fund and the Housing Revenue Account budgets. The report stated that:

Sadly, the potential savings we are now setting out are just the beginning of that process as all councils face financial crisis with the prospect of significant new funding from the government unlikely. However, the range of proposals show that balancing the books will not just mean funding cuts, but options like investing to save in the long-term, and where necessary seeking a greater contribution from those who can afford to pay more.

Councillor Vinny Lubbock asked if the dramatic overspend by Children's Education on agency staff was being investigated, and who was overseeing the investigation. Councillor Chapman said that the overspend was a reflection of increased costs for children's social care and that it largely affected social workers. The Council's Chief Executive, Dawn Carter-McDonald, added that there was a nationwide issue with recruitment of social workers.

Capital Update and Property Disposals And Acquisitions

The Cabinet approved a number of capital projects and property disposals.

The Pedro Club

Councillor Chapman highlighted the funding of the Pedro Club, a community sports club in Kings Park.

I'm delighted to announce that, again, despite the financial pressures we're under, we were able to announce the funding for the Pedro Club, which will make sure that this well-loved facility is brought back, well, stays in use and is fit for the future and the residents, particularly of Kings Park.

Councillor Kennedy said that:

Sport England are prepared to put in £1.5 million of the Pedro Club project for the rebuilding of that building, so when we're bold, partners are bold.

The Cabinet agreed to allocate a further £1.5m to the project, subject to the Pedro Club securing match funding from Sport England and other sources, and making satisfactory progress on strengthening its governance.

Local Authority Housing Funding

The Cabinet approved the allocation of £15.7m of Local Authority Housing Funding round 3 grant (LAHF3) to deliver 56 new homes for temporary accommodation, as well as 4 resettlement homes for Afghan refugees under the Afghan Citizens Resettlement Scheme. They also approved delegated authority to purchase further suitable dwellings in Hackney using the grant.

Councillor Etti welcomed the investment, saying that it would keep our residents within the borough in terms of their network, and Councillor Williams said that it reaffirmed the Council's commitment to being a Borough of Sanctuary.

Councillor Vinny Lubbock asked how the Council defined genuinely affordable housing and why 50% of new homes were not simply being built as council homes. Deputy Mayor Nicholson responded that the definition was set out in the National Planning Policy Framework, adding that:

In Hackney we consistently refer to genuinely affordable homes because what's actually defined in the national planning policy framework as an affordable home, I think as all of us in the Chamber are more than aware, very, very rarely is actually affordable in reality.

Councillor Nixon said that the reason more council homes were not being built was a lack of funding, adding that:

If you can find down the back of the green party sofa, Councillor Vinny Lubbock, some 150 odd million pounds, just for year one, then I can assure you the Housing Regeneration team in the London Borough of Hackney will love you dearly, have beat a path to your door, and many, many more council homes, as in council rent homes, would be built in our borough.

The Local Implementation Plan

The Cabinet approved resource and spend approval of £3.967m for the final year of the Local Implementation Plan (LIP) 2024/25 and Mayor of London’s Air Quality Fund (MAQF) for 2024/25 and 2025/26. This funding will enable the delivery of schemes identified in the 3 Year Local Implementation Plan 2022/23 - 2024/25.1

The funding will support schemes to improve air quality, reduce road casualties, discourage the use of private cars, and encourage the use of sustainable transport. It will also support the expansion of the cargo bike share scheme and the delivery of micrologistics hubs.

Councillor Vinny Lubbock asked if the funding for the LIP programme could be used to implement additional schemes in areas where car volume had increased and air quality had worsened. Councillor Young responded that the funding was very limited and that the Council's approach to allocating it was set out in a technical note.

Councillor Vinny Lubbock then asked if the North World Road scheme was still being taken forward. Councillor Young said that she would have to check on the details but that the point was about engagement and design rather than the specific outcome.

Section 106 Funding

The Cabinet approved the allocation of £920,000 of Section 106 funding for two schemes:

Small Asset Sites

The Cabinet approved the disposal of six small plots of land that have been deemed surplus to requirements.

Hackney Council Agency Joint Venture with Commercial Services Kent Ltd (CSKL)

The Cabinet approved a proposal to set up a joint venture with Commercial Services Kent Ltd (CSKL) to provide recruitment agency services to all Hackney Council departments. The joint venture will be set up as a Teckal company, which is a type of public-public partnership.

Councillor Williams said that:

By creating this JVE, the council will have more control over our recruitment of temporary staff, and it aligns with our goals while delivering on our commitments on community wealth, prioritising opportunities for Hackney residents with employment and skills outcomes.

The joint venture will aim to directly recruit staff and where appropriate transition temporary staff to permanent roles.

Councillor Vinny Lubbock asked if the joint venture would include engagement with a longer-term vision for insourcing staff. Councillor Williams responded that the Council's Cabinet Procurement and Insourcing Committee was always looking at insourcing as an option.

City and Hackney Safeguarding Adults Board Annual Report

The Cabinet noted the City and Hackney Safeguarding Adults Board Annual Report 2023-24.

Councillor Kennedy highlighted that the most common reason for safeguarding adult referrals was self-neglect.

Councillor Vinny Lubbock asked if the mental health triage team model being used successfully in the City of London had been considered for Hackney. Councillor Kennedy said that it would be trickier in Hackney but that it would be worth asking the Metropolitan Police and the East London and North East London Foundation Trusts.

Updated Appointments and Nominations

The Cabinet noted the updated membership of the Cabinet Procurement and Insourcing Committee, with Councillor Young joining as a substitute.

Councillor Chapman welcomed Councillor Young to the committee, saying that:

This particular meeting of the cabinet procurement and sourcing committee was even more interesting than usual in that it really, really, really did demonstrate the huge range of things that we consider at CPIC which are all of vital importance to the council.


  1. A 'Local Implementation Plan' is a statutory document that sets out a local authority's proposals for implementing the Mayor of London's Transport Strategy.