The Cabinet of Tower Hamlets Council met on Wednesday 28 September 2022, discussing a range of important issues including the procurement of a new highways and street lighting contract, essential works at Watney Market, and the council's budget monitoring report. Key decisions were made regarding the highways contract and the urgent repairs needed at Watney Market.

Highways and Street Lighting Contract Procurement

The council has agreed to proceed with the procurement of a new highways and street lighting works contract, which is set to replace the current one expiring on 31 March 2023. The contract will have a duration of seven years, comprising five core years with two possible extensions linked to the attainment of contract Key Performance Indicators (KPIs) and performance targets. A social value framework, contributing 10% to the contract award criteria, will be implemented. The achievement of employment targets, including jobs, apprenticeships, and graduate schemes, will be delivered through the council. The contract will be awarded through an open tendering process to the most economically advantageous tenderer.

Watney Market Essential Works

Urgent safety works are to be undertaken at Watney Market to address the deteriorating condition of the underground car park. The sprinkler system is at the end of its life, and a deficiency notice has been served by the London Fire Brigade. The report highlighted risks to the residential blocks, Colstead and Melwood Houses, situated above the market, should a fire occur in the basement and the sprinkler system fail. To mitigate these risks, a waking watch is currently in place. Water penetration has caused lime corrosion, damaging conduits and affecting the sprinkler system and other cabling. The proposed works include refreshing the water membrane and resurfacing the market itself. These remedial works will allow the car park, offering approximately 82 spaces, to be brought back into public use. The asset and lighting systems will also be upgraded. A budget of £2.89 million has been confirmed for this project to enable works to commence swiftly, with local residents, shopkeepers, and market traders to be kept updated on the plans.

Budget Monitoring Report

The council is forecasting an overspend of £2.8 million for the 2022-23 financial year, as at the end of the first quarter. A significant factor contributing to this forecast is a £2.6 million pressure from energy costs, with electricity prices increasing by 68% and gas costs by 160-200%. Other pressures include adult social care costs, vacant property costs, and a shortfall in commercial waste income. Conversely, there are surpluses in concessionary fares and parking income. The council will continue to monitor budgets throughout the year to bring the forecast overspend back in line. The Housing Revenue Account (HRA) is also forecasting a £0.5 million overspend, primarily due to energy costs. In terms of capital expenditure, the council anticipates spending £146.1 million on general fund schemes and £84.8 million on HRA schemes this financial year. Councillor Kabir Ahmed emphasised the importance of supporting residents during the cost of living crisis, particularly in light of rising energy prices. Officers assured that efforts would continue to manage and reduce the forecast overspend.

IT Contract Procurement Approval

The Cabinet has authorised the opening of negotiations with four key suppliers to continue the use of essential IT applications that support council services. This is crucial for maintaining the continuity and robust management of systems related to housing benefit and social care. The report detailed the contracts, providing flexibility and oversight. A portion of the document was restricted from public view, but it was confirmed that these items could be discussed in an open session without revealing confidential details.

Record of Corporate Directors' Actions

The Cabinet noted and approved the record of corporate directors' actions, which were presented clearly within the meeting documents.

Livable Streets Announcement

Mayor Lutfur Rahman made a statement regarding the council's approach to livable streets and road closures. He reiterated the manifesto pledge to remove road closures implemented by the previous administration, stating they have impacted thousands of working people, delivery drivers, taxi services, and small businesses. The Mayor argued that these closures have pushed traffic onto other roads, often in poorer areas, leading to congestion and pollution for vulnerable residents. While acknowledging the climate emergency and the commitment to becoming a net-zero borough, the council intends to understand the reasons behind car usage and barriers to public transport before making decisions on remaining restrictions. An update on these restrictions will be provided in due course after considering public opinion surveys and any further consultation required.