The Overview and Scrutiny Committee of Tower Hamlets Council met on Monday 26 October 2020 to discuss the council's budget monitoring, waste service performance, and the ongoing COVID-19 pandemic. Key decisions included the acknowledgement of a significant budget deficit, ongoing efforts to improve waste collection services, and a detailed update on the rising COVID-19 cases and the council's response.

Budget Monitoring for Period Five

The committee received a sobering report on the council's budget monitoring for period five, forecasting an overall deficit of £13 million for the year. This deficit includes £5.5 million related to COVID-19 costs, out of a total projected COVID expenditure of £36 million. Underlying pressures, excluding COVID-related costs, amount to £7.5 million, attributed to undelivered savings and expenditure pressures. Councillor Candidate Ronald, Cabinet Member for Resources and the Voluntary Sector, highlighted that the council has had to draw upon reserves to bridge the gap, a situation exacerbated by the pandemic and years of government funding cuts. Mr. Neville Merton, Corporate Director of Resources, outlined financial control measures being implemented, including a recruitment freeze, robust challenges to agency spend, and a non-essential expenditure embargo.

Councillor Wood inquired about future government funding and the forecast of £7 million in income foregone. Mr. Merton explained that a formal claim had been submitted, but it was anticipated that the council might be around £1 million short, particularly as the government considers some income losses, such as free parking for essential workers, to be local decisions not eligible for reimbursement.

Councillor Etishan Hak asked for figures on income loss due to COVID-19, extra expenditure because of COVID-19, and the contrast with government support. Mr. Merton stated that income loss from sales, fees, and charges was £7 million. Additional COVID expenditure was £36 million, with £28 million being non-income related. Government support received to date, including the recent £14.4 million tranche, totals around £38 million. Councillor Mark Francis noted that the £14.4 million government funding would broadly cover the COVID-related overspend, but the £7.5 million non-COVID deficit still requires action. Councillor Ronald reiterated that the £14.4 million was intended for winter costs and future expenditures, emphasizing the need to address the underlying pressures to bring the budget back into balance.

Waste Service Performance

The committee reviewed the performance of the in-house Waste Service, six months after it was brought under council control. Councillor Asmit Islam, Cabinet Member for Environment and Public Realm, and Mr. Richard Williamson, a manager within the service, presented the findings. They acknowledged that the initial six months were significantly impacted by the COVID-19 pandemic and industrial action. The service aimed to deliver a like-for-like service initially, with investments in equipment and IT systems, and the transfer of over 300 staff.

Despite challenges, including an estimated £500,000 extra cost due to COVID-19 measures and reliance on agency staff due to sickness, the report indicated an overall improvement in performance compared to the previous Veolia contract. Missed collection complaints had decreased, although resolving them remained an area for improvement. Street cleansing performance, however, saw a blip with increased resident complaints and a decline in standards, which was linked to more people being at home and an increase in fly-tipping. Recommendations for the service include improving data management, joint working with planning on service design, reviewing service specifications, focusing on productivity and income generation, and enhancing workforce engagement and training.

Councillor James King raised concerns about missed pickups and the barriers between residents reporting issues and their resolution, particularly in Limehouse Ward. Mr. Williamson explained that the new system allowed for more detailed complaint tracking, enabling targeted interventions. He also noted that COVID-19's primary impact was on staffing and social distancing measures, leading to reliance on agency staff which affected round completion.

Councillor Farouk Ahmed highlighted persistent waste collection issues in Whitechapel Ward, specifically on estates like Royal Mint Street and Burner Street, and Cannon Street Road. Councillor Islam acknowledged these issues and stated that an action plan was being developed for long-term solutions. Mr. Williamson added that ward-based action days were being implemented to understand root causes, which could involve service design, delivery, resident education, or enforcement.

Councillor Andrew Wood inquired about the free bulk waste collection service, noting difficulties in booking and its potential link to fly-tipping. The service has extended its booking window to three weeks and is considering a four-week window due to exceptionally high demand. Councillor Mark Francis praised the in-house service for collections but noted less progress on street cleansing, particularly regarding road sweeping and the collection of bagged waste. He also questioned the new approach of not specifying road sweeping frequencies. Mr. Williamson confirmed that street cleansing was a focus area and that some streets had not been swept to the required frequency.

Concerns were also raised about the development of the IT system, with Halima Islam, a co-opted member, asking about its impact on service delivery. Mr. Williamson explained that while the system was good for managing work, the customer interface needed improvement to make reporting easier for residents and provide better feedback, which had led to additional complaints. James Wilson, a co-opted member, asked about redeploying staff from other services to mitigate reliance on agency staff. Mr. Williamson confirmed that this had been done early on but that short-notice sickness still necessitated agency cover.

Councillor Etishan Hak asked about senior officers' site visits to problem areas, and Lima, a resident, raised concerns about bin collection standards and the difficulty of obtaining recycling bags. Mr. Williamson confirmed that senior officers had conducted site visits and that a focus was being placed on improving communication regarding recycling, including the use of alternative containers to pink bags.

COVID-19 Update

Soman Banerjee, Director of Public Health, provided an update on the rising incidence of COVID-19 in the borough. He reported that the seven-day incidence rate had tripled since early October, placing Tower Hamlets as the ninth highest in London. The virus was increasingly affecting older age groups, more vulnerable populations, and areas of deprivation, with higher levels observed in the South Asian population. Key areas with higher incidence included the northwest of the borough, Whitechapel, Stepney, Bethnal Green, and Shadwell. While there had been few major outbreaks, local testing sites had been established, and a local test and trace program had been launched. The borough had moved to Tier 2 restrictions on 17 October, introducing a ban on household mixing indoors and reinforcing advice to reduce travel.

Councillor Gabby Jones raised concerns about food sovereignty and the provision of free school meals, particularly given the borough's high child poverty rate. Mr. Banerjee acknowledged that the issue of food supply had been discussed at a corporate leadership team meeting. Councillor Bex White inquired about laptops for children isolating at home and shared a concerning case where a vulnerable resident received incorrect advice about social bubbles. Christine McInnes, from the council, later clarified that a government scheme provided laptops for certain targeted children, and schools were also providing support.

Councillor Etishan Hak questioned the link between housing conditions and COVID-19 transmission, particularly in the Bangladeshi population and social housing. Mr. Banerjee confirmed a clear link between multi-generational housing, overcrowding, and increased transmission, and that the council was working with housing associations to map and address issues on specific estates. Councillor Andrew Wood asked about compliance with self-isolation instructions, and Mr. Banerjee indicated that qualitative data suggested reluctance due to concerns about confidentiality and economic impacts. Halima Islam asked about planning for school outbreaks amongst staff, and Mr. Banerjee explained the ongoing work with schools and Public Health England. Councillor Farouk Ahmed raised concerns about the location of the testing centre in Watney Market, a densely populated area. Mr. Banerjee explained that the site was chosen due to high case numbers and accessibility, and that testing was by appointment only with strict safety measures in place.

Work Programme

The committee reviewed the draft work programme for the 2021 municipal year, with an overarching theme of transparency, resident engagement, and how services respond to residents' needs. Councillor Mark Francis inquired about the inclusion of resident engagement twice in the programme, and the Chair explained that the first session would scope out the topic, with a more detailed session to follow. The potential inclusion of a discussion on the impact of the mayoral system and governance arrangements was also mentioned.

Cabinet Pre-Decision Questions

The committee discussed the management of pre-decision scrutiny questions for upcoming Cabinet meetings. Councillor Etishan Hak proposed reviewing the questions to eliminate duplication and ensure they were genuinely pre-decision. Councillor Andrew Wood highlighted a process issue regarding the parking item on the Cabinet agenda, noting its importance and lack of inclusion on the forward plan. Councillor Mark Francis agreed, suggesting a wider problem with genuinely seeking residents' views. Councillor Farouk Ahmed echoed concerns about the parking decision, emphasizing that it went against residents' wishes and petitions. Councillor Gabby Jones raised the issue of the high needs block deficiency and its potential impact on SEND provision. The closure of libraries and reduction of services at others was also noted as a significant issue for residents. Councillor Farouk Ahmed specifically questioned the rationale behind the decision to close Kiwi Town Library and reduce services at others, highlighting its importance as a community hub. The Chair noted that any Cabinet decision would trigger a three-month consultation period.