The Overview & Scrutiny Committee of Tower Hamlets Council met on Monday 24 July 2023 to discuss the cancellation of Neighbourhood Community Infrastructure Levy (CIL) funding and the council's strategic performance for 2022-23. The committee also reviewed the council's financial outturn for revenue and capital for the same period.

Neighbourhood Community Infrastructure Levy (CIL) Funding

The committee considered a call-in regarding the cabinet's decision on 21 June 2023 to cancel civil funding. Councillor Sabina Akter, presenting the call-in, argued that the decision contravened the council's constitution and was not proportional to the stated outcomes. She highlighted that many of the cancelled schemes aligned with the council's strategic priorities, such as boosting culture, empowering communities, and working towards a clean and green future. Concerns were also raised about the adequacy of public consultation, with the Annual Resident Survey being deemed insufficient for decisions on CIL funding. Specific examples of cancelled projects included improvements to access to indoor board gardens, Sydney Square, and Whitechapel Market. Councillor Akter recommended that the Mayor and Cabinet re-examine the decision, consult residents and neighbourhood planning forums, and conduct a robust equality impact assessment.

Councillor Kabir Ahmed, Cabinet Member for Regeneration, Inclusive Development and Housebuilding, defended the decision, stating that the new CIL approach aimed to align with the strategic plan and deliver meaningful local improvements. He argued that the new approach, which prioritises grants, capital projects, and affordable housing, would be a more comprehensive way to meet local priorities. Councillor Ahmed also noted that the new approach would be informed by the Annual Resident Survey, a model used in other London boroughs. He stated that there is no legal requirement to consult neighbourhood forums on developing a new CIL approach, but that engagement with local communities would be a key part of the new grant process. He also highlighted that 25% of CIL would be allocated to areas with neighbourhood forums, and 15% elsewhere.

During the subsequent discussion, councillors raised concerns about the impact of the cancellations, particularly on the Isle of Dogs, and questioned the rationale behind the decision. Councillor Marc Francis expressed dismay at the extent of the cuts to public realm improvements, while Councillor Maisha Begum criticised the lack of detailed justification. Councillor Asma Islam argued that some cancelled projects, such as flat recycling and Watney Market regeneration, were in line with the Mayor's manifesto and council priorities, and questioned the rationale for their cancellation. Councillor Mohammad Chowdhury expressed satisfaction with Councillor Ahmed's answers, particularly regarding the low number of nominations for some projects. Councillor Abdul Mannan supported the new administration's approach, suggesting that projects agreed in 2016 might be outdated.

Ultimately, the committee voted to refer the decision back to the Cabinet for reconsideration.

Strategic Performance and Delivery Report (Annual Report 2022-23)

The committee reviewed the council's performance for 2022-23 against its strategic plan. Chief Executive Steve Holsey highlighted key achievements, including the awarding of all 400 university bursaries and exceeding targets for uniform patrols. He also noted the Tower Hamlets crime reduction team's national award. However, he drew attention to areas of concern, particularly recycling rates, where the council is among the bottom three in the country. He indicated that the government's new Office for Local Government (Oflog) would be scrutinising this area.

Stephen Bramah, Head of Corporate Strategy and Improvement, explained the reporting process, including the RAG status (Red, Amber, Green) for performance indicators and the narrative provided for areas performing below target, including mitigation plans and expected timelines for improvement.

Councillor Asma Islam raised concerns about the homelessness service, particularly in light of recent media reports and an ongoing independent investigation. She questioned the availability of alternative accommodation and the process for assessing applications. Councillor Abdul Mannan also raised concerns about the rising cost of living and its impact on homelessness, asking about provisions to help vulnerable people. Mr Holsey stated that the issues surrounding homelessness were a London-wide problem and that the council was working with other boroughs and government bodies to address it. Rafiqul Hoque, Head of Housing Options, detailed the challenges faced by the service, including a significant increase in demand and a reduction in available private rented accommodation. He outlined measures being taken, such as increasing rates paid to landlords and recruiting additional staff.

Regarding recycling, Simon Baxter, Head of Waste Management, explained the complexities of recycling in a densely populated borough with a high proportion of flats. He highlighted issues with bin provision, contamination, and the impact of new waste legislation. He acknowledged that the council's recycling rate was the second worst in the country and outlined mitigation plans, including targeted communications, route optimisation, and a new recycling plan for flats.

The committee also discussed the performance of the Education, Health and Care (EHC) plans service, which has seen an unprecedented increase in demand. While the service is currently below target, an improvement plan and additional workforce recruitment are in place. The council's EMA (18+) and university bursary schemes were also discussed, with a question raised about the criteria for awarding EMAs and the potential for distributing unused funds.

Council's Financial Outturn for Revenue and Capital (2022-23)

Saied Ahmed, Cabinet Member for Resources and the Cost of Living, presented the council's provisional financial outturn for 2022-23. The General Fund showed an underlying gross overspend of £14.7 million, which was reduced to a net underspend of £0.6 million after the drawdown of earmarked reserves. Key spending pressures were identified in children's services (SEND), adult social care, waste operations, and homelessness.

The Dedicated Schools Grant reported a £0.9 million underspend, reducing the brought-forward deficit. The Housing Revenue Account (HRA) had an in-year overspend of £6.6 million, largely due to energy pressures, increased leaseholder service charges, abortive capital costs, and void property costs.

Regarding savings targets, only £5.9 million of the £11.8 million target was delivered, with £4.7 million identified as unachievable. The General Fund Capital Programme had a net variance of £22.1 million due to slippage, and the HRA Capital Programme had a variance of £28.3 million, also due to slippage.

Councillor Marc Francis raised concerns about the underspends in the General Fund Capital Programme and the HRA overspend, questioning the drivers and actions being taken. Caroline Holland, Corporate Director for Resources, explained that the HRA was being reviewed to ensure it remained in balance and supported its capital programme. Ahsan Khan, Head of Strategic Finance, provided further detail on the breakdown of the HRA overspend.

Other Business

The committee also discussed the draft work programme for the Overview & Scrutiny Committee and its subcommittees, with a final draft to be presented in September. It was agreed to delegate the nomination of three representatives to the Inner North East London Joint Health Scrutiny Committee to the Health Scrutiny Subcommittee.

The meeting concluded with thanks and well wishes to Sharon Godman, the statutory scrutiny officer, and David Knight, the committee clerk, who were both moving on from the council.