The Cabinet of Tower Hamlets Council is scheduled to convene on Wednesday, 29 July 2026, with a key item on the agenda being the Contracts Forward Plan for Quarter 1 of the 2026-2027 financial year. The meeting will also review the Strategic Delivery and Performance Report for Year 4, Quarter 4, and examine the Budget Monitoring for both the 2025/26 provisional outturn and the 2026/27 period. Additionally, discussions are scheduled regarding the regionalisation of fostering recruitment, assessment, and support services.

Contracts Forward Plan – Q1 – FY 2026-2027

A significant portion of the meeting is dedicated to considering the Contracts Forward Plan for the first quarter of the 2026-2027 financial year. This report outlines contracts that are being procured during this period and seeks confirmation that these contracts can proceed to award following the tender process. The plan includes details of new contracts planned for quarter one and beyond, with the aim of providing Cabinet with visibility of high-value contracting activity. The report asks for Cabinet members to identify any contracts about which they would like further information before proceeding.

The contracts scheduled for discussion include:

• Property, Terrorism & Casualty (Liability) Insurance (R6149): This is a statutory contract with a duration of five years, procured through the Insurance London Consortium (ILC), a group purchasing consortium of seven London boroughs. Social Value will have a 10% weighting in the tender evaluation, with specific requirements to be defined.
• Unit 4 SaaS contract (R6125): This is a three-year contract for the Finance System, which is the core system for recording all financial transactions. The contracting approach involves a direct award for three years, with year one dedicated to preparation for full procurement, year two for the procurement itself, and year three for mobilisation. The standard 10% social value requirement will be secured directly from Unit 4.
• Antill Road Learning Disability Day Activities (HAC6145): This is a statutory Adult Social Care service with a contract duration of 12 months. Opportunities for savings are limited due to its statutory nature, but cost avoidance will be achieved by not uplifting the contract value in 2027/28. The service supports adults with profound learning disabilities, complex mental health, and behavioural needs. Social Value will have a 10% weighting in the tender evaluation.
• E-service provision for sexual health (HAC5818): This contract, commissioned by the City of London Corporation on behalf of 31 boroughs, is currently in its ninth year and set to expire in August 2026. Due to delays in the re-procurement process, a 12-month extension of the current contract is proposed to maintain service continuity. This service is crucial for early detection and treatment of sexually transmitted infections and plays a key role in delivering Tower Hamlets' statutory responsibility for comprehensive sexual health services.
• Integrated Information, Advice & Advocacy (HAC6123): This is a statutory service fulfilling the council's obligations under the Care Act 2014 regarding the provision of information and advice about adult social care. There are no direct savings attached to this procurement, as demand has significantly increased. Social Value will have a 10% weighting in the tender evaluation.
• Substance Misuse Treatment and Recovery Services (HAC6052): This is a statutory service with a contract duration of five years. Cashable savings will not be made as it is a ring-fenced provision, but non-cashable savings will be secured through increased quality and productivity. The service meets the needs of residents facing substance misuse challenges, aiming to equip individuals with tools for recovery. Social Value will have a 10% weighting in the tender evaluation.

Strategic Delivery and Performance Report Year 4 Quarter 4

The Cabinet will receive the Strategic Delivery and Performance Report for Year 4, Quarter 4, covering the period from 1 January 2026 to 31 March 2026. This report details performance against the council's strategic plan priorities and all reportable strategic measures. It aims to provide a clear understanding of the council's current performance, informing any necessary decisions or actions arising from operational delivery. The report indicates that 34 performance measures met or exceeded their target (Green), an increase from the previous quarter, with two measures improving from Red to Green. However, six measures are flagged as Amber, and five remain Red, requiring attention.

Budget Monitoring 2025/26 - Provisional Outturn

This report sets out the provisional financial outturn position of the council for the 2025-26 financial year. It highlights a net General Fund overspend of £19.4 million, after accounting for funding substitutions and reserve drawdowns. The Dedicated Schools Grant (DSG) also shows an overspend of £15.1 million, while the Housing Revenue Account (HRA) has an underspend of £3.5 million. The report details the reasons for these variances, including pressures in Temporary Accommodation, Adult Social Care, and Children's Social Care demand. Enhanced financial governance arrangements, including Expenditure Control Panels and Spending Review Panels, are in place to manage these pressures.

Budget Monitoring 2026-27 Period 2

The Cabinet will also review the 2026-27 financial position of the council as at Period 2. This report provides a forecast against the budget for the current financial year, highlighting areas of overspend and underspend across directorates. It details the progress made against savings targets and the utilisation of reserves and contingency budgets. The report indicates a forecast net General Fund overspend of £19.2 million, which will be funded from reserves and contingency. Recommendations include approving the use of funds from the S106 Carbon Offset Fund for food waste collections and approving the extension and increase of the household income threshold for the School Uniform Grant.

Regionalisation of Fostering Recruitment, Assessment and Support

This report outlines LB Tower Hamlets' plans to continue participating in the regional fostering recruitment service, Local Community Fostering (LCF). The proposal includes expanding the service to take responsibility for the full fostering recruitment and assessment pathway, aligning with the Department for Education's 'Renewing Fostering' Programme expectations. This expansion is necessary to meet DfE funding conditions and delivery deadlines. Delegated authority is sought to enable timely operational, financial, and service decisions to avoid risks to delivery and funding. The report highlights the benefits of the LCF, including improved recruitment activity and quality of progression, leading to increased likelihood of securing local, family-based placements and reducing reliance on independent fostering agencies.

The meeting will also cover other agenda items, including the approval of the minutes of the previous Cabinet meeting, announcements from the Mayor, and updates from the Overview & Scrutiny Committee. The agenda also includes provisions for a public question and answer session.

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