The Transformation Advisory Board of Tower Hamlets Council met on Monday 19 February 2024 to discuss the LGA Corporate Peer Challenge Action Plan, the Medium Term Financial Strategy, and income generation opportunities. The Board reviewed progress on the Corporate Peer Challenge Action Plan, noting that significant actions had already been completed and that four key longer-term findings remained. Discussions also focused on the Medium Term Financial Strategy, highlighting a balanced budget position and identified savings, as well as the potential for income generation through various council assets and services.

LGA Corporate Peer Challenge Action Plan

The Board received an update on the LGA Corporate Peer Challenge Action Plan, introduced by Stephen Halsey, Chief Executive. Kirsty Roberts, Strategy and Improvement Lead, detailed the plan, noting that the review process had been rigorous and that significant actions, such as those concerning the council's accounts and the Annual Governance Statement, had already been completed. Key longer-term findings highlighted included the need for a robust Medium Term Financial Strategy, the development of a workforce strategy, improved relations with partners, and the acceleration of the 'People First' Transformation programme. The Board discussed the importance of the Action Plan remaining a live document to monitor progress and suggested that housing, homelessness, and the Housing Revenue Account were areas that warranted further review. Board members were asked to provide feedback on which areas they would like to see discussed in more detail at future meetings, particularly where their expertise could be valuable.

Medium Term Financial Strategy (MTFS)

Julie Lorraine, Corporate Director of Resources, presented the Medium Term Financial Strategy (MTFS). The Board noted the strategy's headlines, which included a balanced budget position for the next three years, protection of statutory services, and risk mitigation measures. Significant savings of approximately £43 million have been identified, with contracts with third parties being a particular area for potential savings. The strategy also emphasised income generation as a key focus, with risk weighting mechanisms in place to balance opportunities against potential under-delivery. The budgeted use of reserves for the current financial year had been reduced from £20 million to £1 million. The Mayor, Mayor Lutfur Rahman, thanked officers and members for their work on the budget, noting that nine months of hard work had gone into its preparation. The Board discussed the presentation, raising points such as the need to consider the council's technology strategy and advising caution regarding the success of income generation initiatives, stressing the importance of ensuring the council had the necessary capacity to support such ventures. Updates on the MTFS, particularly concerning high-risk areas, will be brought back to the Board as appropriate.

Income Generation

The Board received a presentation on income generation, highlighting it as a key priority within the Council's Medium Term Financial Strategy. It was noted that the Board members' expertise could be valuable in achieving these goals, and the Council intended to implement a commercialisation strategy. Early areas of focus included venues such as the Registrars at St George's, Idea Stores, better utilisation of the Town Hall and other property assets, and arts, parks, and events. The Board was asked to consider what advice they could offer based on their own experiences. In discussion, the Board highlighted the need for a clear list of high and low-risk income generation ideas. Leisure centres were identified as a particular focus, with the potential for significant income streams if the right facilities and programmes were offered. The importance of driving best value for the community, not just profit, was stressed, as was ensuring that council support services were set up to quickly facilitate new income generation ideas, avoiding delays caused by administration and processes. The Board also suggested speaking to local organisations about what would work for them and making income generation a priority for all officers. Officers were tasked with providing more information on the Income Generation project, particularly regarding identified high-risk areas, and further reports on key areas such as leisure will be presented. Board members were also encouraged to consider how they could support this work.