The Overview and Scrutiny Committee of Tower Hamlets Council met to discuss a call-in regarding the Cabinet's decision to consult on the phased closure of local authority day nurseries. The committee unanimously agreed to refer the decision back to the Mayor, requesting he reconsider the proposal for consultation, focusing on the length, scope, and process of the consultation.

Early Years Services Consultation

The primary focus of the meeting was the Cabinet's decision on 27 June 2018 to consult on the phased closure of local authority day nurseries. The call-in by Councillors Gabriela Salva Macallan, Unknown, and Tarik Khan questioned the process of this consultation.

Arguments for the Call-in:

• Timing and Due Diligence: Councillors argued that the consultation process was rushed, with insufficient time for proper scrutiny and discussion of alternative proposals. They raised concerns that the consultation was based on a nursery, Mary Sandbrook, which had already stopped taking new children in July 2017, and questioned the information presented about another nursery, Unknown.
• Meaningful Consultation: A key argument was that the proposed consultation, offering only two options (closure or maintaining the status quo), did not meet the legal threshold for due diligence and a meaningful consultation. Councillors suggested a longer consultation period, similar to Salford City Council's 90-day engagement, and the establishment of a mixed working group of councillors to explore alternative options.
• Financial Viability and Inefficiencies: Concerns were raised about the financial management of the nurseries, with one councillor highlighting that a significant portion of the budget (£562,000 out of £707,000) was absorbed by council recharges, which was deemed disproportionately high compared to private or third-sector organisations.
• Impact on Families and Staff: Councillors expressed worry about the impact on parents and children, noting that there were waiting lists for the nurseries, indicating demand. They also highlighted the need for job security for staff and fair redeployment procedures.
• Previous Opposition: It was noted that Councillor Danny Hassell, the lead member for Children's Services, had previously opposed similar closure proposals in 2014, describing them as vicious.

Arguments Against the Call-in (from Councillor Hassell):

• Reasonableness of Consultation: Councillor Hassell, Lead Member for Children's Services, argued that the Mayor's decision to consult on the proposed closures was reasonable. He stated that fewer than 100 children use these specific local authority day nurseries, representing less than 1.6% of overall provision, and that the council has a duty to ensure fairness and that all children benefit from early years spending.
• Financial Pressures: He explained that the Dedicated Schools Grant (DSG) funding for these nurseries was no longer sustainable due to significant pressure on school budgets. He quoted the head teacher of Thomas Buxton Primary School and chair of the Schools Forum, who stated that funding could no longer be diverted from other children's services to keep these places open.
• Alternative Provision: Councillor Hassell highlighted that there were 122 unfilled places at maintained nursery schools, which are described as outstanding settings, and that these could accommodate the children from the local authority day nurseries. He also mentioned specialist provision for children with special educational needs and disabilities (SEND) at Children's House nursery and other primary schools.
• Sustainability of Other Services: The proposal to consult on closure was presented as a measure to protect the wider sustainability of early years services, including ensuring the financial viability of nursery schools and nursery classes in primary schools, some of which currently have unfilled places.
• Consultation Period: Councillor Hassell indicated a willingness to extend the statutory 28-day consultation period, acknowledging that the school holidays would make it difficult for parents to engage.

Committee's Decision:

The Overview and Scrutiny Committee unanimously agreed to refer the decision back to the Mayor. They requested that the Mayor reconsider the proposal for consultation, taking into account:

• Length of Consultation: The committee felt the proposed consultation period was too short, particularly as it would overlap with the school summer holidays. They suggested a longer period, potentially extending into September and October, to allow for meaningful engagement.
• Scope of Consultation: Concerns were raised that the consultation offered only a binary choice (closure or status quo) and did not adequately explore alternative options. The committee suggested that the consultation should allow for the development and consideration of a third way or alternative proposals.
• Process of Decision Making: Some councillors expressed concerns about the process leading up to the Cabinet report and the timing of information being made available.

The committee's recommendation was that the Mayor should think again about the proposal, ensuring a more comprehensive and inclusive consultation process. The committee also suggested that the outcome of the public consultation should be brought back to the Overview and Scrutiny Committee for discussion and advice to the Mayor before a final decision is made.