The Overview and Scrutiny Committee met to discuss the Asset Management Strategy, Organisational Transformation, and the Climate Emergency. Key decisions included agreeing to discuss the Asset Management Strategy in a closed session due to its draft nature, and a commitment to further explore the implications of the Organisational Transformation plan, particularly regarding its pace and alignment with significant financial challenges. The committee also reviewed the Climate Emergency plan, noting its innovative Just Transition approach and the significant external funding secured by the climate action team.

Asset Management Strategy

The committee was presented with a draft Asset Management Strategy. It was noted that the document was a green paper, indicating it was a draft for internal confidential use and had not yet been formally signed off by the council. Councillor Lester Hudson, Chair of Overview and Scrutiny, expressed concern about the lack of clarity regarding the draft status of the paper, leading to confusion about its purpose and the committee's role in pre-decision scrutiny. Councillor Zulfiqali, Government for Finance and Resources, apologised for the oversight in not communicating the draft nature of the paper earlier. The committee agreed to treat the document as a draft for pre-decision scrutiny, with an assurance that their recommendations would be seriously considered. The meeting then moved into a closed session to discuss the exempt material within the report.

Organisational Transformation

The committee reviewed the Transforming Newham for the Future Plan, which aims to address challenges such as financial sustainability, service delivery, resident satisfaction, and operational efficiency. A significant concern raised by Councillor Rita Chadha was the quality of current technology and the financial implications of a more digital-focused approach. James Pass, Chief Approximation, explained that the council faces a significant technology deficit gap due to legacy systems and historic decisions. He outlined a plan to accelerate technology transformation, including an ICT disaggregation project with OneSource, and the use of external partners to build new systems.

Councillor Chadha also expressed concerns about the potential for residents to be left behind due to a lack of digital skills, and the risk of system failures, referencing past issues with Happy Council and the British Library. The committee discussed the need for a multi-channel approach, including improving the telephony offer and ensuring resident-led design.

The role of councillors in the transformation process was also debated. Councillor Chadha suggested that councillors, who experience services directly through resident casework, should have a more integrated role in the planning and design phases to avoid future hiccups.

The committee also discussed the timeline for portfolio consolidations, with the Chief Executive leading a review of organisational structure. It was indicated that this would likely be completed by the end of the year.

Concerns were raised about the pace of transformation in light of significant financial pressures, with one councillor questioning if the £39 million transformation plan was sufficient to address the need for cuts totalling £175 million. The executive team assured the committee that the transformation plan is inherent to addressing the financial challenges and that savings are being pursued through internal efficiencies, staff effort reduction, and the use of technology.

The committee also discussed cybersecurity risks, acknowledging lessons learned from past incidents and highlighting the importance of managing these risks through robust systems and staff training. The transformation plan's risks are being tracked on a dedicated transformation risk register, with strategic risks to be escalated to the corporate risk register.

Climate Emergency

The committee reviewed the Scrutiny Report - Climate Emergency, which outlines the council's action plan for addressing climate change. Councillor John Whitworth presented the plan, highlighting that the council's commitment to climate action began with its declaration of a climate emergency in 2019. The plan, developed by a team of nine, has secured £4.7 million in funding, significantly exceeding its operational costs.

A key aspect of the plan is its Just Transition approach, which aims to ensure that the shift to a net-zero economy benefits all residents, particularly those most vulnerable to the impacts of climate change. Jacob Hytland, Director of Climate Action, explained that this approach moves beyond solely focusing on carbon reduction to include resilience and equity. Newham is identified as having a high risk of extreme heat and surface water flooding, making resilience a critical component of the plan.

The committee discussed the funding model, with Councillor Lakmini Shah noting that the majority of funding comes from external sources, making the climate action team largely self-financing. Questions were raised about the uniqueness of Newham's Just Transition plan and potential associated risks. Councillor Hytland stated that the plan is designed to address these risks by incorporating resilience and equity alongside decarbonisation.

The committee also discussed the carbon impact of technology and the council's website, which has a carbon rating of F. Councillor Hytland acknowledged this and stated that the team would investigate this further.

Concerns were raised about the capital required for decarbonising council properties and the need for government grants to fund this work. The committee also discussed the challenges of retrofitting private rented sector properties and incentivising owners to make them more energy-efficient.

The impact of the climate action initiatives on residents was a significant point of discussion. While some positive impacts on air quality in specific areas, such as healthy school streets, were noted, councillors sought clearer metrics on the overall impact on air quality and the quality of the environment. The committee also debated the effectiveness and impact of low-traffic neighbourhoods and emissions-based parking charges.

The committee also discussed the circular economy and behaviour change initiatives, with Councillor Terence Paul emphasizing the need for clear metrics to define success in these areas. Councillor Hytland agreed to provide clearer measures of success in future drafts of the plan.

Other Matters

The minutes of the previous meeting on 6 August 2024 were noted, with two amendments proposed by Councillor Terence Paul. These amendments related to progress on compensation payments for individuals wrongly judged by the local authority and the recording of a motion passed at the previous meeting regarding public scrutiny meetings. The committee agreed to bring the debate on the motion to a future meeting for a vote.

The committee also noted apologies for absence from Councillor Paul Leslie and Corporate Director Paul Kitson. No declarations of interest were made by members.

The committee agreed to extend standing orders by no more than half an hour to accommodate the remaining agenda items.

Finally, the committee made an appointment: Councillor Hudson was appointed as the Deputy Chair for the Children and Young People's Scrutiny Committee.