The Skills, Economy and Growth Scrutiny Commission met to review the achievements of the administration and discuss the automation of parking appeals processing. Key decisions included noting the progress on manifesto commitments, the ongoing challenges faced by the council, and the priorities for the remainder of the administration's term. The commission also received an update on the implementation of an AI tool to streamline parking appeals.

Review and Update from Cabinet Members: Achievements of the Administration 2022-2026

Councillor Robert Chapman, Cabinet Member for Finance, Insourcing and Customer Service, provided an update on the administration's achievements and challenges in relation to manifesto commitments. He highlighted the significant financial pressures Hackney Council has faced, including a loss of £150 million in government support under the previous Conservative government. Despite these challenges, several pledges have been advanced.

Pledge 11, concerning the procurement of goods and services locally and sustainably, is on track. The Sustainable Procurement and Insourcing Strategy was ratified in December last year, embedding a procure local first approach and requiring social value to be considered in all procurements. Work is underway with Cialia and HCVS to deliver fit-to-supply workshops for local SMEs and VCS organisations.

Pledge 243, the Space Bank initiative to use council-owned buildings for local businesses and the voluntary community sector, has seen progress, though delivery has been challenging due to financial pressures and the need for property use to be financially sustainable. Shared use of spaces has been promoted, and the VCS-led Shared Power Network has been established. However, the Garages to Workspace Programme has been paused due to viability constraints.

Pledge 244, to create a council-to-business brand, has seen significant commercial activity, including Hackney's commercial waste service generating a surplus and Hackney Markets moving towards self-sufficiency. A major rollout of 3,000 electric vehicle charging points is in progress, and Hackney Light and Power has launched a residential solar pilot. A comprehensive commercial strategy is being designed and will go to Cabinet for approval in December.

Pledge 10, prioritising local businesses and social enterprises where services cannot be insourced, has not yet been fully achieved in terms of creating new co-operatives. However, the Strategic Procurement and Insourcing Strategy embeds an insourced first hierarchy. Hackney has brought 18 major contracts in-house in recent years, including waste collection and ICT.

Pledge 245, expanding procurement pathways for local businesses, is at an early stage, with foundations laid for improved accessibility to contracts for SMEs and VCS organisations.

Councillor Chapman outlined priorities for the final eight months of the administration, focusing on financial effectiveness and identifying further savings to maintain financial sustainability. He also highlighted the Mayor's three main priorities: housing and homelessness, poverty and inequalities, and climate change.

During the discussion, Councillor Gilbert Smyth asked about the circular economy, the Space Bank website, and savings from insourcing 18 services. Councillor Jasmine Martins questioned the pause on the Space Bank project and the need for a new brand for council-to-business services. Councillor Penny Wrout raised concerns about the lack of uptake from co-operatives and probed further into the Space Bank initiative, particularly regarding community halls and the viability of converting garages into workspace. She also sought clarification on the definition of a local business for procurement purposes. Councillor Chapman responded that while progress has been made, financial pressures have impacted some projects, and that the council is working to measure the benefits of insourcing more effectively. He also clarified that the definition of a local business focuses on the location of people and premises.

Parking Appeals Automation of Notice Processing

Michael Wiktorko, Senior Service Area Manager of Parking Customer Services, presented an update on the pilot project to automate parking appeals notices. The initiative aims to integrate AI to improve the efficiency of the appeals process, with the tool assisting case officers by drafting responses for their review and approval.

Hackney Council issues a significant number of Penalty Charge Notices (PCNs), with over 300,000 issued in the last financial year, resulting in over 62,000 disputes. The appeal rate to the independent adjudicator remains very low, below 0.3% of PCNs. Hackney Council has achieved the number one ranking in London for winning cases at independent adjudicators, demonstrating the quality of their work.

The current process for handling disputes takes approximately 15 minutes per case, with officers handling around 30 cases per day. The new automated system aims to reduce this to approximately 10 minutes per case, increasing productivity by 40%. The AI tool is designed to summarise incoming disputes, identify key information, and draft responses, thereby eliminating the need for officers to read every correspondence in full. This is particularly beneficial for repetitive scenarios such as vehicle sales or blue badge displays.

Councillor Liam Davis raised concerns about data privacy and the potential for scope creep with AI. Geeta Subramaniam-Mooney, Director of Environment and Climate Change, clarified that the system uses automation rather than generative AI and that data protection has been a forefront consideration. She assured members that the council is testing AI cautiously and learning from its implementation.

Councillor Martins sought clarification on whether the automation selects the boxes for the officer, which was confirmed. She also asked if language barriers would be picked up by the system, which was also confirmed. Councillor Patrick Pinkerton inquired about the process if an officer disagrees with the proposed response, and was informed that there is a function to report disagreements back to the supplier for review. Councillor Penny Wrout asked how the system determines if a contravention is a first-time contravention without accessing previous data, and was informed that the system checks the vehicle's record for previous PCNs.

Councillor Wrout also raised concerns about potential bias and discriminatory responses from the automated system. Michael Wiktorko explained that all cases are quality checked by team leaders, and that the system is designed to be objective, focusing on factual evidence. He also noted that the system does not use generative AI and is trained on existing council policies.

Councillor Gilbert Smyth asked about the reliability of the system, the potential for legal challenges, the council's IT infrastructure, and staff training. Michael Wiktorko stated that the system has approximately 95% accuracy, and that all cases are checked by a human. He also confirmed that the system is hosted by the supplier and does not interface with external platforms like Google. Staff training is provided, and most staff pick up the system within a week.

Skills, Economy and Growth Scrutiny Commission Work Programme 2025/26

The commission discussed potential items for its work programme for the upcoming municipal year. Suggestions included reviewing the business voice and support funding, the Green Skills Centre, the Transport Strategy, the circular economy strategy, library services, the voluntary sector strategy and grants programme, and the Nighttime Economy Strategy.

Councillor Smyth suggested exploring the community energy fund and its alignment with the Green Skills Centre and Ways into Work programme. Councillor Jasmine Martins proposed a joint piece of work with the Living in Hackney Scrutiny Commission to examine how businesses are signing up to schemes like 'Ask Angela' and the council's support for these initiatives, particularly in relation to the Nighttime Economy and its impact on women and girls. Councillor Penny Wrout raised concerns about changes to A-level provision at BSix college and whether this would fall under the commission's remit. Councillor Jon Narcross inquired about the remit for reviewing town centre support and area action plans.

The Overview and Scrutiny Officer confirmed that the Nighttime Economy Strategy would encompass issues of antisocial behaviour and that area action plans fall within the commission's remit. It was also confirmed that if BSix transitions to a Further Education College, it would fall under the commission's purview. The commission agreed to monitor developments at New City College and to discuss potential joint work with the Living in Hackney Scrutiny Commission.

The commission also agreed to the minutes of the previous meeting held on 16 June 2025. The minutes for the meeting held on 7 July 2025 were noted as still to come.