The Cabinet of Tower Hamlets Council met on Tuesday 27 February 2018 to discuss a range of important issues, including the improvement of children's services, the council's budget, and the future of its ICT services. Key decisions were made regarding procurement in adult social care and the funding for the London Square project.

Children's Services Improvement Progress

The committee received an update on the progress of children's services, with input from Sir Alan Wood, Chair of the Children's Services Improvement Board, and Debbie Barnes, an improvement partner from Lincolnshire. Both highlighted positive progress, noting that Tower Hamlets has implemented necessary processes and management oversight to achieve compliance, with corporate and political commitment aligned. However, they stressed that there is still a long way to go to reach the ambitious target of a good rating from Ofsted by 2019, and a strong focus on service quality is now needed to sustain progress. Areas identified for improvement include recruiting, training, and developing a stable, motivated, and highly skilled workforce, ensuring competitive salaries, and providing support and career development opportunities for social workers. The committee also discussed the need for stronger partnerships with health services, the police, and the voluntary sector, improving engagement with early help delivery, and monitoring children in need who do not have a plan. Furthermore, measures to improve cultural changes were discussed, such as training, better caseload allocation and supervision, involving children's voices in analysis and records, involving staff in the development of a new model of social care that views families as assets, ensuring the quality of social work is sustained as support levels decrease after an improved rating, engaging families without being perceived as an enforcement team, and representing the community in the social care workforce. The committee also discussed the need for all members to receive training on children's services and how to better scrutinise the service after the elections.

Chief Executive Spotlight

The Chief Executive, Will Tuckley, presented a session highlighting the council's progress from a period of distress to implementing necessary changes, including a three-year budgeting plan, an organisational review, and new leadership. The committee noted areas for development such as cultural change, breaking down silos, raising the profile of audits, and the need for leadership to be more outward-facing. Discussions also covered planning around the election to safeguard against fraud and corruption. The committee discussed with the Chief Executive the Communities and Local Government Select Committee report on the effectiveness of local authority overview and scrutiny committees. The committee formally requested a response to this report from the executive after the May election, to be presented to the first meeting of the new overview and scrutiny committee. All current members, including co-opted members and councillors on scrutiny subcommittees, should have an opportunity to contribute to this report. Key areas highlighted included the importance of hearing from independent third parties on service quality, citing the spotlight session on children's services with Sir Alan Wood and Debbie Barnes as a prime example of how overview and scrutiny can be assisted in challenging service areas to improve. The committee also emphasised the need for improved executive engagement with scrutiny to ensure added value, particularly in developing the work programme and discussing areas of risk. The importance of induction processes to upskill executive and scrutiny members to better understand and engage with scrutiny processes was also noted, as was the demanding and time-consuming nature of the chair's role, which needs to be considered when appointing a new chair after the May elections.

Corporate Monthly Budget Monitoring

The committee reviewed the quarter three budget report, welcoming the new format and content. The committee noted a general fund underspend of £1.5 million and an HRA underspend of £8 million. Budgeting around greater risks, such as those in children's services, was also discussed, with questions raised and addressed in the circulated papers.

Adult Social Care Procurement

Councillor Denise Jones declared a personal interest in a specific paragraph of the report due to a family relationship with a board member mentioned, and therefore left the room during the discussion. Mayor John Biggs presented the report, highlighting that procurement and its management were areas of concern that led to government intervention. He explained that as part of the improvement journey, procurement processes have been redeveloped, with a significant amount of council spending channelled through various procurement activities, particularly in adult and children's social care. The report detailed progress in adult social care procurement, noting that 44 contracts are now in place, with 15 procurements underway. A key focus has been driving social value, with 19 contracts awarded to local providers and 32 out of 44 contracts with the voluntary and community sector, demonstrating strong support for the local community. Co-produced strategies with local people have also been implemented, focusing on designing solutions with those who experience the services. Systems have been put in place to track contracts and flag them for review in line with commissioning intentions and to ensure a better flow through procurement processes. The report sought decisions on a small number of items, primarily related to community rents and the need to regularise them as part of the best value action plan, as well as challenges with local landlords regarding the use of their premises for service delivery.

Unlocking Opportunities Funding Report and London Square Project

The council decided to withdraw from a European Social Fund (ESF) project due to increasingly tightened eligibility and onerous monitoring criteria that hindered the ability to help disadvantaged individuals. Instead, the council will use £1 million of Section 106 money to fund this activity, which is more flexible and cost-effective than the £1.4 million of ESF funding being forgone. This approach is not unique to Tower Hamlets, as other London boroughs have faced similar challenges with ESF projects.

In parallel, the council will use CIL (Community Infrastructure Levy) and Section 106 contributions to fund the development of the London Square project, located behind the new town hall. This project aims to transform the open space into a vibrant area for visitors to the Civic Centre and hospital, and potentially for small-scale markets and festivals, forming part of a green spine from Whitechapel Road to Commercial Road. The total cost for the London Square project is £1.486 million. Councillor Andrew Wood raised concerns about the overall cost of the Whitechapel Civic Centre, which has increased to £105 million, a 38% rise from the previously approved £77 million. Councillor David Edgar and Mayor John Biggs explained that this increase is due to factors such as an increase in the building's scale and capacity, as detailed in a June 2017 cabinet report. They assured that the council would provide a more comprehensive explanation of the costings and value for money measures.

Social Value Act Scrutiny Challenge Report

The council accepted and will carry forward the recommendations from a scrutiny review of the Social Value Act. This legislation allows local authorities to add value through various means, and the report outlines how the Act can be implemented effectively. Councillor Rachel Blake suggested looking at assessment tools from other authorities to avoid reinventing the wheel and to maximise social impact.

Creating a Balanced Night-time Economy

A scrutiny report on the night-time economy was discussed, with a number of recommendations largely accepted by the council. These recommendations aim to balance the economic benefits of a growing night-time economy with the need to mitigate negative impacts on residents. Progress is being made on economic benefits, including engagement with the GLA consultation on the night-time economy and the development of employment opportunities. A hospitality training centre will also open as part of a Section 106 agreement. Councillor Peter Golds, Chair of the Licensing Committee, raised concerns about the appointment of a night czar, suggesting that a cabinet member should instead hold this responsibility. He also called for a review of the Cumulative Impact Zone (CIZ) and the late-night levy, recommending close work with Hackney Council on this matter. The review of assets of community value (ACVs) was also highlighted as important. Councillor Golds also suggested that the City of London should take more responsibility for its night-time economy's impact on neighbouring boroughs. Councillor Amina Ali highlighted the inclusion of a neighbourhood pilot scheme to address anti-social behaviour and the importance of food hygiene and safety standards within the night-time economy. Councillor Abdul Mukit MBE emphasised the need to ensure the night-time economy benefits residents as well as businesses, particularly in the west of the borough. Concerns were also raised about waste management policies and the need to integrate planning into licensing and enforcement strategies to establish clear boundaries and operating rules for night-time economies in specific areas. The issue of touting by curry restaurants was also raised.

Local Implementation Plan (LIP) Annual Spending Plan

The council discussed its Local Implementation Plan (LIP), which outlines how it will implement the Mayor of London's transport strategy at a local level. The report detailed progress on the first LIP phase (2017-2018) and future plans for 2018-2019, with a focus on road safety, cycling, walking, healthy streets, and air quality. While initial funding allocations for 2018-2019 were substantially reduced due to government cuts to Transport for London (TfL), additional funding of £390,000 has been secured from business rate receipts. This additional funding will be prioritised for schemes aligned with the criteria, focusing on road safety, improving compliance with the 20 mph limit, cycling, air quality, and specific anti-social behaviour issues not addressed by standard traffic management.

ICT Future Sourcing

The council is proposing a hybrid model for its ICT services after March 2019, when the current contract with Agilisys ends. This model involves bringing some functions in-house, extending the contract with Agilisys for two years, and then undertaking a tender process to bring in key posts and teams. This approach aims to improve the management of ICT work, which is undergoing significant change. Approximately 35 posts are expected to be transferred in-house, and the council will directly manage a number of third-party supplier contracts. During the transition period, work will continue on upgrading the outdated infrastructure. Councillor Dave Chesterton noted that questions raised at overview and scrutiny regarding IT provision for children's services, which has been struggling with its ICT, would be addressed later.

Corporate Monthly Budget Monitoring Report

The council reviewed the corporate monthly budget monitoring report, which presented a forecast underspend of £1.5 million on the general fund and a significant underspend of £24.8 million on the Housing Revenue Account (HRA). The HRA figure relates to longer-term housing reserves and arises from technical considerations regarding capital programme funding. The report identified potential risks to the budget, including social care costs, offset outcomes, and savings delivery, and outlined the measures being taken to address these. The report's new format was praised for its clarity and accessibility, making it easier to understand the financial position and progress on savings. Councillor Amy Whitelock Gibbs raised concerns about the absence of commentary on an overspend in transport and the SCN (Special Educational Needs) budget, which are London-wide issues. Officers confirmed that these are areas of anxiety and that a written response would be provided.