The Council of Tower Hamlets convened on Wednesday, 28 February 2024, to approve the budget and Council Tax for the upcoming financial year 2024-25. Key decisions included setting the Council Tax requirement and agreeing to the Mayor's budget proposals, which incorporate a 2.99% increase to the Tower Hamlets element of Council Tax and a 2% Adult Social Care precept. The Council also adopted the Treasury Management Strategy Statement, Investment Strategy Report, and Capital Strategy for 2024-25.

Budget and Council Tax 2024/25

The Council approved the Mayor and Executive's budget proposals for 2024-25, which includes a General Fund Revenue Budget of £462.606 million. A Council Tax (Band D) of £1,204.11 has been set for the year, incorporating a 2.99% increase to the Tower Hamlets element of Council Tax and a 2% Adult Social Care precept. The Council also noted the Greater London Authority (GLA) precept, which is subject to approval by the GLA Assembly. The Capital Programme, Housing Revenue Account budget, and Dedicated Schools budget were also noted.

Designation of Monitoring Officer

Following the departure of the previous Director of Legal Services, Linda Walker was endorsed as the designated Monitoring Officer for the Council on an interim basis. This role is crucial for ensuring the Council's governance and probity.

Treasury Management, Investment, and Capital Strategies

The Council adopted the Treasury Management Strategy Statement, Investment Strategy Report, and Capital Strategy Report for 2024-25 to 2026-27. These strategies outline the Council's approach to managing its investments and borrowing, aiming for prudent financial management, security, and liquidity while pursuing optimal performance. The Minimum Revenue Provision (MRP) Policy Statement was also adopted as part of the Capital Strategy. The Council will continue to monitor its prudential and treasury indicators to manage financial risks effectively.

Housing Revenue Account (HRA) Financial Resourcing Strategy

A financial strategy for the Housing Revenue Account (HRA) was presented and agreed upon. This strategy aims to address the borough's housing crisis by better utilising HRA resources to provide more homes, improve existing stock, and reduce reliance on expensive temporary accommodation. Key elements include maintaining investment in the housing stock, resourcing a risk-focused team for high-risk properties, preparing for new regulatory requirements, and reducing reliance on third-party B&B accommodation by utilising the HRA for an additional 300 homes. The strategy also involves discontinuing the previous approach to Minimum Revenue Provision (MRP) to create additional revenue resources and adjusting the interest cover ratio for prudential borrowing. The Council also agreed to the acquisition of approximately 600 homes over the next two years within the HRA and the allocation of around 200 homes for temporary accommodation from vacated units.

Growth Proposals and Savings

A significant portion of the meeting was dedicated to discussing numerous growth proposals and savings initiatives across various directorates. These proposals aim to either increase investment in services or achieve financial efficiencies.

Key Growth Proposals:

• Waste Services: A £5 million investment is planned to improve waste services, including recruiting additional frontline workers, enhancing nighttime and weekend provision, acquiring new vehicles, and investing in street cleansing.
• Housing Options and Homelessness: Two growth bids totalling £8 million were discussed to address the overspend in this service, primarily due to increased temporary accommodation costs and a shortfall in Housing Benefit subsidy. Measures include developing an acquisition strategy for cheaper properties and enhancing landlord recruitment.
• Adult Social Care: Growth is proposed for demographic pressures and inflation, with an estimated requirement of £2.92 million for 2024-25, £4.64 million for 2025-26, and £4.96 million for 2026-27. This is partly offset by the continuation of the Adult Social Care Discharge Fund.
• SEN Transport: An additional £1.121 million is sought for SEN transport to address increased demand and inflationary pressures.
• SEND Improvement: £454,000 is allocated for additional staffing within the SEN and Preparing for Adulthood service to manage the rising number of Education, Health and Care Plan (EHCP) assessments and reviews.
• Accelerating Education: £1.35 million is allocated for the Mayor's Education Maintenance Allowance (EMA), University Bursary Awards, and Education Awards.
• Somali Community Hub: £60,000 is proposed for the development of a community hub focused on the Somali community.
• Women's Resource Centre: £400,000 is allocated to establish a dedicated resource centre for women, with a focus on Bangladeshi women.
• Electric Vehicle (EV) Charging Points: £1.6 million per year is proposed for the installation of additional bike parking across Tower Hamlets, with a focus on estates and on-street locations.
• Future of Building Control: £501,000 is requested to enhance the Building Control team's capacity to respond to the Building Safety Act, including recruiting additional Registered Building Inspectors and specialist officers.
• Care Technology Transformation: An investment of £962,000 is proposed for a five-year project to expand the use of care technology, aiming to prevent, reduce, or delay the need for more costly social care support.
• Leisure Service Insourcing: £2.105 million is allocated for the insourcing of the Leisure Service, aiming for greater control over operations and the potential for improved service delivery and income generation.

Key Savings Proposals:

A comprehensive list of savings proposals were presented, aiming to achieve financial efficiencies and generate income across various directorates. These include:

• Council Tax Measures: Introduction of an Empty Property Premium (£546,000) and a Second Home Premium (£2 million from 2025-26) to encourage properties back into use and generate income.
• Housing Revenue Account (HRA) Savings: Deletion of THH executive management posts (£548,000), reduction in THH contingency budget (£485,000), and efficiencies in finance, procurement, and audit relating to THH company administration costs (£200,000).
• IT Savings: Rationalisation of telephony on Microsoft Teams (£2.5 million), limiting Microsoft Office applications to online versions, reducing email and file retention periods, removing Box and Egress services, and downgrading internet connections for smaller offices.
• Waste Services: A £5 million investment is planned, with a corresponding saving of £5 million in 2025-26, to review and improve waste operations, including commercial waste services and street cleansing enhancements.
• Planning and Building Control: Savings are proposed through income generation from new advertising sites (£830,000 over three years), reviewing fees and charges (£830,000 over three years), and restructuring support services (£251,000).
• Adult Social Care Savings: Proposals include reducing reliance on out-of-borough placements by supporting residents to return in-borough (£253,000), decommissioning the Dellow Centre (£100,000), and increasing the recycling rate for community equipment (£60,000).
• Other Savings: Further savings are proposed from removing corporate contingency budgets, reviewing IT infrastructure, restructuring the Mayor's Office, and reducing agency spend in Legal Services.

The Council's Budget and Council Tax for 2024/25 were approved, along with the associated Treasury Management, Investment, and Capital Strategies. The meeting also saw the designation of Linda Walker as the interim Monitoring Officer. Numerous growth proposals and savings initiatives were discussed and approved, reflecting the Council's commitment to balancing financial sustainability with service delivery and strategic priorities.