The Hackney Council Scrutiny Panel met on Tuesday 21 July 2026 to review the council's annual complaints and member enquiries report, discuss the council's budget update, and examine the digital strategy and the use of artificial intelligence (AI) and automation. Key decisions included the formal establishment of a Budget Scrutiny Task and Finish Panel and the approval of its terms of reference and membership, as well as noting the draft scrutiny panel work programme for 2026/27.

Hackney Council Complaints and Member Enquiries Annual Report 2025/26

The panel reviewed the Hackney Council Complaints and Member Enquiries Annual Report for 2025/26. Bruce Deville, Head of Business Intelligence, Elections and Member Services, and Ben Bradley, Head of Mayor's Cabinet and Civic Support and Member Casework, presented the findings.

The report indicated a slight decrease in Stage 1 complaints compared to the previous year, but a significant 45.6% increase in Stage 2 complaints, which are now over four times the volume from four years ago. Housing services accounted for 53% of Stage 1 complaints and 65% of Stage 2 cases. The Housing Ombudsman had previously investigated Hackney Council under paragraph 49 but has since disengaged due to satisfactory progress. Local Government Ombudsman cases remained broadly flat. Compensation payouts totalled £423,000, with 90% related to housing cases.

Member Enquiries saw a substantial 44.6% increase, reaching nearly 6,000 cases, with Environment and Climate Change, Housing Services, and Benefits and Homelessness Prevention being the most frequent areas of concern. Mayor and Cabinet Enquiries saw a marginal increase. Despite the rise in volumes, average response times for Member Enquiries improved. Resident surveys indicated that while a majority felt their enquiries were taken seriously and received satisfactory responses, there remained room for improvement in timeliness and overall satisfaction.

Councillor Maidment questioned how managers in Environmental Services and Customer Services were provided with insights into Stage 1 complaints to address root causes. Officers explained that service areas receive an overview of complaints within the system, allowing managers to see root causes and dashboards for statistical analysis. Gita, from Environmental Services, added that service requests often come through as complaints, and residents are encouraged to use FixMyStreet for more effective handling.

Councillor Scott raised concerns about the Local Government Ombudsman's investigations, particularly those attributed to homelessness prevention, noting recurring themes of procedural failures, delays, and lack of communication. Alex, from the homelessness prevention team, explained that improvements are being made, including a new IT system for the housing register and a review of how residents access the homelessness service, focusing on early advice and better triage.

Councillor Young inquired about efforts to ensure residents have access to free legal advice services to prevent complaints escalating into legal disputes and what steps are taken to ensure the subject of a complaint is addressed without delay. Ricardo, from Legal Services, explained that residents are encouraged to use the complaints process unless they are at a certain stage of a legal disrepair case. He also highlighted that some residents are advised by legal firms not to engage with the council's attempts to remedy issues, hoping for higher compensation.

Councillor Shiraji asked about accessibility for vulnerable groups, non-English speakers, and the digitally excluded. Officers confirmed complaints are accepted via telephone, online, and email, with efforts made to find translators if needed. Telephone response times are immediate.

Councillor Young also followed up on staffing resources for the Member Enquiries team, noting the significant increase in volumes. Ben Bradley, Head of Mayor's Cabinet and Civic Support and Member Casework, acknowledged that staffing had been a challenge, with the team reduced from six to five members. He noted that response times had improved despite increased volumes, but acknowledged that the new Mayor and Cabinet's personal interest in casework had increased response times for their enquiries.

Councillor Annepa asked for two distinct examples from past quarters where trends in complaints directly resulted in permanent changes to policy, procedure, and service delivery. Officers stated they could follow up with specifics in writing, as immediate examples were not readily available. Alex from the homelessness service noted that service improvement work in that area is underpinned by awareness of resident issues, such as delays in decisions and lack of transparency.

Council Budget Update

The panel reviewed the council's budget for 2026/27, presented by Councillor Florence Schechter, Cabinet Member for Finance, Resident Service and Digital, Naheem Ahmed, Group Director, Finance and Corporate Resources, Deirdre Worrell, Director of Financial Management, and Shakeel Yassine, Director of Finance.

The net revenue budget for 2026/27 is £424 million, with adult social services and children's social care making up over 50% of this. The gross budget is £1.2 billion. Funding sources include Revenue Support Grant (£138 million), Council Tax (£129 million), Business Rates (£71 million), and specific grants (£87 million).

Significant cost pressures were identified across directorates:

• Children and Education: Pressures in corporate parenting, family intervention support, looked-after children, and disabled children services due to increased unit costs and numbers. Hackney Education faces pressures supporting EHCP assessments and transport costs. A statutory override for a £19.1 million deficit in the council accounts has been extended to March 2028.
• Adults, Health and Integration: Pressures in care support and commissioning, and mental health, due to rising demand and complexity of needs, particularly in supported living placements which saw a 32% surge.
• Housing, Climate and Economy: Pressures in benefits administration due to the housing benefit subsidy shortfall, and in climate, sustainability, and environmental services due to operational demands and the cost of maintaining public realm cleanliness.
• Finance and Corporate Resources: Pressures in ICT and workplace due to a forecast shortfall in income from ICT traded services, and rising costs of repairs and maintenance for the council's estate.
• Housing Revenue Account (HRA): Pressures related to repairs and maintenance, exacerbated by the implementation of Awaab's Law, and the need to contribute to capital investment.

The council is forecasting an overall General Fund overspend of £5.4 million for 2026/27, with significant pressures in Children and Education (£3.4m) and Adults, Health and Integration (£7m). The HRA is forecast to break even. Savings proposals for 2026/27 total £26.6 million, with a forecast delivery of 86.4%. However, several savings proposals, particularly within Children and Education and Finance and Corporate Resources, are rated as 'Red' due to delays and uncertainty in their achievement.

Councillor Scott inquired about interventions for the high needs block deficit in the Dedicated Schools Grant (DSG) and the likelihood of SEND reform plan approval. Officers detailed recovery plan interventions including localised provision, early intervention, and fiscal discipline. They confirmed the deficit has stabilised and that 90% of funding is anticipated from the government if the reform plan is approved.

Councillor Onapa questioned the assessment threshold for the 32% surge in supported living placements and how the Adult Social Care Improvement Board is managing its impact on reserves. Officers explained that supported living is a cost-effective provision between home care and residential care, and the increase in placements reflects a wider rise in needs. The Adult Social Care Improvement Board is focused on mitigating demand and exploring re-ablement services.

Councillor Chapman raised concerns about the £12.5 million savings target for transformation over three years, noting a £7 million saving identified for the current year was rated as 'Red'. Officers explained the voluntary redundancy scheme is a key part of the transformation plan, aiming to reduce staff numbers without affecting service delivery, and that savings will be realised as services are redesigned and technology is increasingly used.

Councillor Young asked about the Crisis and Resilience Fund and how funding reaches vulnerable groups, particularly the Haredi community, and how independent advice sectors are supported. Councillor Schechter stated that the funding is targeted using community groups to reach hard-to-reach individuals and that the VCS programme is still live. Further details would be provided by the Strategic Policy team.

Councillor Maidment questioned the increase in temporary accommodation rents in older blocks and how the council is ensuring the additional income is passed on to residents. Officers explained that the council absorbed losses for existing tenants when LHA rates increased, and new tenants are subject to the LHA 24 rate. Discretionary housing payments are available for households in financial difficulty.

Councillor O'Neill inquired about the council's consideration of its environmental impact on its footprint, particularly concerning technology tools. Officers confirmed that environmental impact is considered during procurement and contract management, and that suppliers are questioned on their sustainability impact.

Digital Strategy & Use of Artificial Intelligence (AI) and Automation

Rehana Ramesh, Director of ICT, Digital and Customer Services, presented the Digital Strategy 2025-28 and the AI policy. The strategy's vision is to deliver seamless digital services, with AI and automation playing a key role. Five themes underpin the strategy: a digitally accessible council, a digital workplace, a digital place, a digitally inclusive borough, and becoming a data-informed organisation. Six design principles guide this: digital first, people-centred, inclusive, co-created, secure by design, and data-driven.

The governance framework includes mandatory assessments for Data Protection Impact, Cyber Security, and Equalities Impact, alongside review by the Technical Design Authority and the Data Ethics Board. Decisions on AI deployment are tiered, escalating to the Corporate Leadership Team and Cabinet for significant risks or policy shifts.

Opportunities for AI and automation include virtual assistants for call triaging, AI-assisted software development, public realm monitoring, and predictive analytics for self-service. The AI policy outlines Hackney's principles: human-centred, open, fair, safe, and innovative. It explicitly prohibits AI use for sole decision-making in critical areas like employment or social care assessments, and for facial recognition or predictive policing.

Councillor Scott raised concerns about data sovereignty, privacy, and algorithmic bias when using third-party AI models. Officers assured that data is not hosted outside the UK or EU, and procurement processes include checks on data hosting and algorithm transparency. Pilots are conducted with small groups, and data is kept within Hackney's infrastructure. The Data Ethics Board reviews the Open Data Institute's framework to assess impact on communities.

Councillor Per-Bo inquired about accessibility options like large print and easy reads, promotion of co-production with residents, and further training for officers on addressing disabled people within AI tools. Officers highlighted the re-platformed council website's accessibility standards and the use of staff disability networks and resident engagement in developing new portals. Training is factored in early, with Gemini training provided to over 500 staff.

Councillor Maidment asked about website functionality, specifically citing issues with ordering parking permits. Officers acknowledged a problem with the parking system's core application and its supplier, and are working on improving website information about alternatives.

Councillor Shiraji questioned the environmental costs of AI model training and whether the remit of the Data Ethics Board extends to training data. Officers stated that Hackney does not train models with its data and that environmental impact is assessed during procurement. They are learning how to capture these metrics, and the Data Ethics Board focuses on operational embedding of AI and data use.

Councillor O'Neill asked about the council's environmental impact footprint. Officers confirmed this is assessed for technology tools and captured within procurement frameworks.

Councillor Young inquired about consultations with unions regarding the transition to AI and automation, given potential job anxieties. Officers detailed extensive workforce engagement, including show-and-tells, and regular meetings with unions to share policies and impact assessments. The focus is on upskilling staff to enhance employability.

Budget Scrutiny Task & Finish Group

The panel formally established the Budget Scrutiny Task and Finish Panel, approving its terms of reference, membership, and timetable. Councillor Jasmine O'Connor was appointed as Chair. The panel's purpose is to review the development of the council's budget, challenge resource allocation, and ensure alignment with strategic objectives, value for money, and community priorities.

Scrutiny Panel Work Programme 2026/27

The panel noted the draft work programme for 2026/27, which includes standing items such as quarterly finance updates, the annual report on complaints and member enquiries, and Mayor's Cabinet Question Time. New regular updates on the SP work programme and performance monitoring will be added. Public suggestions for scrutiny topics were also noted, with key themes including:

• Skills, Economy and Growth: Dangerous driving, road safety, pavement cycling, waste disposal, business support for black women, and traffic management (LTNs, bus gates).
• Children and Young People: Inadequate SEND support, school exclusions, mental health provision, and youth employment opportunities.
• Living in Hackney/Housing and Homelessness: Estate maintenance, high rents, homelessness, temporary accommodation, housing repairs, overcrowding, fire safety, and leasehold maintenance charges.
• Health in Hackney/Adults Health and Integration: NHS service delivery, appointment wait times, and concerns about the Homerton Hospital's partnership with Palantir.
• Scrutiny Panel: Efficiency and waste in council services, consultation processes, and the use of public funds.

The panel also agreed to roll over reviews of public engagement and consultation, the transformation programme, and an update on poverty reduction from the previous year into the new work programme.

Minutes of Previous Meetings

The draft minutes of the previous meetings held on 11 March 2026 were agreed as an accurate record.

Any Other Business

Councillor O'Connor formally declared the meeting closed, thanking members and officers for their contributions to a productive and lengthy meeting.