The Cabinet of Tower Hamlets Council met on Wednesday 29 July 2026 to discuss a range of important issues, including the council's financial performance, the expansion of fostering services, and the construction contract for the Beatrice Tate School. Key decisions included approving budget monitoring reports, noting progress on savings targets, and authorising the award of a significant construction contract for a new school facility.

Strategic Delivery and Performance Report Year 4 Quarter 4

Cabinet noted the strategic delivery and performance report for the fourth quarter of Year 4 of the Strategic Plan 2022-2026. Of the 60 performance measures reported, 34 were rated as 'green', indicating they were on track or exceeding targets. Notably, two previously 'red' measures – tenant satisfaction with overall service and satisfaction that homes are safe – had improved to 'green'. Two 'amber' measures, relating to learners passing Skills for Life courses and public realm cleanliness, also moved to 'green'. However, five measures remained 'red', including lets to overcrowded households and the number of privately rented properties inspected. Concerns were raised about the performance of the Tower Hamlets Enforcement Officers (THEOs) regarding patrol hours and community safety warnings, with a request for officers to investigate the financial implications of this underperformance. The council's recycling rate had fallen to 19.83%, below the target of 23%, prompting a discussion on contamination issues and planned interventions.

Budget Monitoring 2025/26 - Provisional Outturn

The Cabinet reviewed the council's provisional financial outturn for the 2025/26 financial year. A net General Fund overspend of £18.6 million was reported, which would be funded from the risk reserve. This overspend was attributed to increased demand in children's social care and pressures in homelessness services, exacerbated by national economic factors. Significant progress was noted against the £30.2 million savings target, with £27.5 million achieved. The Housing Revenue Account (HRA) reported an underspend of £3.5 million. Cabinet approved various funding substitutions and noted the capital programme outturns for both the General Fund and HRA.

Budget Monitoring 2026-27 Period 2

This report provided a forecast of the council's financial position for the 2026/27 financial year as at Period 2. A net General Fund overspend of £19.2 million was forecast, with £8.9 million to be drawn from the risk reserve and £10 million from contingency funds. The Dedicated Schools Grant (DSG) was forecasting a net overspend of £21.7 million, and the Housing Revenue Account (HRA) a net overspend of £1.2 million, both to be funded from reserves. Cabinet approved the use of £1.74 million from the S106 Carbon Offset Fund for the mobilisation of food waste collections and approved transfers from contingency and reserves for HR, OD, Business Support, and Information Governance improvements. The council also approved an increase in the household income threshold for the Council Tax Cost of Living Relief Fund and the School Uniform Grant to £60,000. Revised parking fees and charges were also approved.

Regionalisation of Fostering Recruitment, Assessment and Support

Cabinet approved Tower Hamlets' continued involvement in the Local Community Fostering (LCF) regional hub, with Waltham Forest continuing as the lead local authority. Authority was delegated to the Corporate Director of Children's Services, in consultation with the Corporate Director for Resources, the Mayor, and the Lead Member, to expand the LCF's scope to an end-to-end regional fostering recruitment and assessment service. This expansion is in line with the Department for Education's 'Renewing Fostering' reforms and aims to improve fostering capacity, consistency, and access to grant funding. The decision was made with the understanding that termination clauses and performance management would be included in the final agreement, and that the Mayor and Lead Member would be regularly advised of achieved savings.

Contract Forward Plan – Q1 – FY 2026-2027

Cabinet considered the quarterly forward plan of supply and service contracts. A decision was made to amend the contract award for the R6125 Unit 4 SaaS contract to a duration of 2+1 years, allowing for early exit if necessary and requiring consultation with the Mayor for any extension beyond two years. This decision was made in the context of a direct award due to limited options and a significant price increase.

Application to Cabinet for delegation to sign final version of Beatrice Tate construction contract

Cabinet authorised the Corporate Director of Children's Services to award the construction contract for the Beatrice Tate School Expansion Project to Alexander James Limited for the sum of £6,319,887.85. This decision was deemed urgent to allow construction works to commence immediately, maintaining the target completion date of Q4 2027 and avoiding increased costs due to inflation. The expansion will provide additional specialist educational provision for approximately 60 pupils with severe learning difficulties, meeting forecast demand and saving the council an estimated £6 million annually by reducing reliance on out-of-borough placements. The project also supports the Mayor's Accelerated Housing Programme by enabling the timely vacant possession of the Southern Grove site for housing development.

The meeting also approved the provisional outturn for the 2025/26 financial year, noting a net General Fund overspend of £18.6 million which would be funded from the risk reserve. Cabinet also approved the proposed growth to the Council's General Fund approved capital programme and the Housing Revenue Account capital net position.

In addition, Cabinet approved the revised parking fees and charges for implementation during 2026/27, which included increases for higher-emission vehicles and second/third vehicle ownership, while retaining existing arrangements for Blue Badge holders and residents aged 60 and over. These changes aim to manage parking demand, support environmental objectives, and ensure the financial sustainability of the parking service.

The Cabinet also approved the extension of the School Uniform Grant from 2026/27 to include children in Reception, Primary Year 3, Secondary Year 7 and Secondary Year 10, and increased the household income threshold for eligibility to £60,000. The Council Tax Cost of Living Relief Fund household income threshold was also increased to £60,000.

Finally, Cabinet noted the delegated use of the £5 million Transformation Fund, with decisions to be made in consultation with the Mayor and Lead Member.