This meeting will receive a financial update and address the Council's overspend. It will also discuss property disposal and capital projects. We do not know whether any of the topics discussed in these documents will actually be discussed during the meeting, or whether any decisions will be made.

Financial Position of the Council

The Council is forecast to have an overspend, after mitigations, of £38.210m as at September 2024. This has increased by £1.250m since August, primarily in Adult Social Services and Children’s Services. The overspend is largely due to increasing costs and demand in the provision of temporary accommodation for homelessness and social care. The overspend is also impacting on the Council's Medium Term Financial Plan (MTFP) and is increasing its budget gaps. These are now estimated at £35.814m for 2025/26, £49.281m for 2026/27 and £67.230m for 2027/28.

In order to mitigate this overspend, the Council's Corporate Leadership Team (CLT) is undertaking a number of initiatives, including pausing some budgeted contributions to capital programmes¹, a non-essential spending freeze, a freeze on recruitment of permanent and agency staff and overtime restrictions.

CLT is now doubling down on, and enhancing, the spend control measures put in place earlier in the year.

The Council has also received an additional £15.7m grant funding from the third round of the Local Authority Housing Fund (LAHF3). This will be used to deliver temporary accommodation and resettlement homes, and to support the Afghan Citizens Resettlement Scheme (ACRS). The Council has also participated in a localised business rates pooling scheme with the City of London Corporation and six other London Boroughs, and is proposing to continue participation in this scheme in 2025/26.

The report pack also addresses the ongoing cost of living crisis. In it the Council confirms that it will be spending £5.6m of grant funding from the government’s Household Support Fund on a variety of projects to help vulnerable residents manage the cost of living crisis. These projects include providing food support to families claiming free school meals, fuel vouchers and funding the Hackney Money Hub.

Hackney Youth Parliament Presentation

The Hackney Youth Parliament² were unable to attend the last meeting of the Cabinet and are scheduled to make their presentation at this meeting.

Urgent Exempt Business

The Cabinet will also consider whether to admit any late items of Urgent Exempt Business. Exempt business is not open to the public.

Commissioning of Clinical Sexual Health Services

The report pack says that the Cabinet will be asked to approve the recommissioning of clinical sexual health services in Hackney.

The following changes to service provision are proposed:

• Commissioning a new acute clinical sexual and reproductive health service.
• Continuing to participate in the online sexual health e-service commissioned by the City of London Corporation.
• Recommissioning primary care based clinical services from community pharmacies and GPs.
• Continuing to use third party arrangements in order to meet the open access mandate for sexual health via contracts agreed with out of area providers.
• Recommissioning the Open Doors service for sex workers.

In the report pack the council says that it will use a combination of different procurement methods to find providers for these services and that the aim is to improve them and save £2m.

Commissioning of Sexual Health Prevention and Reproductive Health Promotion Services

The Cabinet will also be asked to approve the recommissioning of sexual health prevention and reproductive health promotion services. In the report pack the Council says these services are key to reducing health inequalities and the demand for clinical services in the future.

In order to improve efficiency, the Council proposes to use an existing framework for community and voluntary organisations working in sexual health, HIV prevention and support, and to take part in the London HIV Prevention Programme. The report pack does not give any information about what the Council's previous spend or commitment to these services is.

Mandeville Primary School - Facade Repairs

The Cabinet will be asked to retrospectively approve a £1,840,237.07 contract variation for facade repairs to Mandeville Primary School that have already been completed. In the report pack the Council explains that it had to undertake urgent remedial work after a terracotta stone corbel fell from the facade of the school. It says that an inspection found that all of the terracotta stones on the building were in a similar condition and needed to be replaced. The works, which were completed in May 2024 at a total cost of £2.3m, included replacing all of the terracotta corbels on the roof.

Parking Services ICT Systems Reprocurement

The Cabinet will be asked to approve the direct award of a three year (2+1) contract worth £3,000,000 to Polaris Software to provide Hackney Council’s parking IT systems. Polaris Software already provides Hackney Council’s parking systems and the new contract will see the existing systems migrated to Azure. The report pack suggests that the cost of this migration would be included in the new contract, and that the direct award is necessary to allow the Council to secure the prices agreed ten years ago when the initial contract with Polaris Software was agreed.

Lift Servicing and Repairs Contract

The report pack says that the Council has a significant number of lifts in its housing stock and that a large programme of replacement works is required. In order to improve service delivery the Council will split the borough into two areas, East and West.

The report pack says that two 5-year contracts, worth £27.9m each, will be awarded, one for each area. The report pack says that the Council will appoint one contractor to each area, and that they will be responsible for servicing and repairing all of the lifts in their area. The contracts will include an option to extend for up to a further 5 years (5 years +1+1+1+1+1).

The report pack says that the contracts will include a client management function to oversee service delivery, and that there will be a Strategic Core Group that will monitor the performance of the contractors against agreed key performance indicators.

Planned Capital Works Contracts for Property Asset Management

The Cabinet will be asked to approve the Council’s procurement strategy for procuring capital works contracts for its housing stock over the next four years. In the report pack the Council says that the contracts will cover external works programmes, planned internal works and specialist fire safety works.

The works, which will be awarded using an external framework, have an annual value of £45m, and the Council says that it will split them between four contractors. The contract will be for 2 years + 2 years. However, the Council suggests that it expects to have longer term partnering contracts in place before the end of the 4 year period.

In the report pack the Council says that it has sought legal advice to mitigate the risk of not being able to use a framework to procure works because of the need to recover costs from leaseholders. The Council proposes to undertake a modified consultation process before joining the framework that closely aligns with the requirements of section 20 consultation. The Council suggests that it has been advised that this will allow it to recover costs from leaseholders.

Residential Concierge & Vacant Premises Security Services

The report pack says that the Council has a framework agreement that covers the provision of corporate security services which is due to expire soon. It says that the framework covers two lots that are of interest to the Cabinet: Security arrangements for vacant premises, and residential concierge services for the Council’s housing blocks.

The report pack suggests that the Council is modernising and optimising its CCTV network in order to reduce the number of physical guards, and that this will lead to a reduction in costs.

The report pack says that the Council is also consulting with leaseholders and tenants about its proposals for residential concierge services.

Unit A, Residence Tower, Goodchild Road

The report pack says that the Cabinet will be asked to approve the granting of a new 10 year lease to the current tenant of Unit A, Residence Tower, Goodchild Road. The tenant, who operates a cafe called Zer Cafe, does not want to continue in the property and has proposed to either sell the business and assign the lease, or to vacate when the lease expires.

The Council proposes to surrender the existing lease and grant a new 10-year lease to the existing tenant so that he can sell the business to someone who intends to continue to operate as a cafe. The report pack suggests that this is in the best interests of the Council and the local community.

17 Sylvester Road

The Cabinet will be asked to approve the sale of the freehold of 17 Sylvester Road, which has been vacant since April 2023. The Council says that the property is in need of comprehensive repair and modernisation and will require at least £2.5m - £3m of investment to make it lettable in the long term. The Council says that it has extensively marketed the property and has received interest from managed workspace/studio operators and a budget hotel operator. However, all of the options that have been presented would require the Council to undertake major works and / or to obtain planning consent for a change of use, and to commit considerable resources to deliver these. The Council believes that the potential return on investment would not justify the risk, expenditure and resources required.

The Council suggests that the property would achieve a higher value if it were to be sold as an unencumbered freehold and that it expects the sale to generate a substantial capital receipt which could be used to fund other projects and programmes. The report pack suggests that the sale of the property would also reduce ongoing void management costs.