The Overview & Scrutiny Committee of Tower Hamlets Council met on Monday 23 March 2026 to review the council's strategic delivery performance and budget monitoring for the third quarter of the financial year. Key discussions included the performance of various council services, financial pressures, and ongoing improvement journeys.

Chief Executive's Spotlight

The Chief Executive, Steven Halsey, provided an update on the council's progress over the past year, acknowledging both achievements and areas requiring further improvement. He highlighted the council's commitment to transparency and cooperation with external bodies, despite facing unsubstantiated allegations. Mr Halsey detailed the ongoing improvement journey, referencing statutory support packages, new ministerial directions focusing on governance, audit, and use of resources, and statutory deep dives into areas such as recruitment, resource allocation, housing, licensing, planning, and governance within the Mayor's office. He also touched upon corporate performance, noting strengths in areas like waste collection and early help, while acknowledging challenges in housing, such as overcrowding, repairs, and anti-social behaviour. The council's Future Places strategy, new local plan submission, youth engagement initiatives, and a prudent budget were also mentioned.

Councillor Abdi Mohamed raised concerns about the council's response to new ministerial directions, suggesting it appeared defensive. Councillor Halsey acknowledged this perception, explaining the joint letter with the Mayor was encouraged under the executive-mayor model and that he would have veered more to realism in hindsight. He stressed the importance of staff pride in their achievements and the commitment shown in a recent People's Survey.

Councillor Asma Islam highlighted specific instances of poor service delivery within housing and governance, citing a lack of acknowledgement for a serious email and a perceived inappropriateness in the council's response to external information. Councillor Halsey apologised for the lack of response and assured that capacity issues for handling member inquiries would be addressed. He clarified that the council's response to external commentary was to ensure accurate reporting and protect the council's reputation, particularly concerning grant funding and government support.

Councillor Ahmodur Khan inquired about the council's steps to tackle misinformation regarding new directions. Councillor Halsey stated that the focus was on ensuring the new directions were understood, particularly the nature of reserved powers. He indicated that lines of communication would be established to help the general population understand these matters.

Councillor Nathalie Bienfait questioned the council's approach to delivery and the perceived planning for a plan issue. Councillor Halsey accepted that there had been a lot of talk but explained this was necessary to develop plans where they were lacking, clarify areas for improvement, and resource these efforts. He acknowledged that the Secretary of State felt delivery had not been quick enough in certain areas.

Councillor Gulam Kibria Choudhury asked about the council's contentment with the progress and timeline for clearing issues with the Department for Levelling Up, Housing and Communities (MHCLG). Councillor Halsey expressed his objective to have no envoys or intervention, but doubted this would be achieved within 12 months, and hoped intervention would not extend to the March 2028 deadline outlined in the directions.

Councillor James King questioned the mayor's tweet about leaked government meeting notes and discussions with MHCLG. Councillor Halsey confirmed he had not seen the notes personally but had received written confirmation from the envoys regarding their regret over the leak. He reiterated that the council's responsibility was to address misinformation that impacted its reputation.

Councillor Ahmodur Khan asked if the minister had taken into account the council's positive performance in adult social care and children's services when issuing the ministerial statement. Councillor Halsey confirmed that service delivery was not the justification for intervention, but rather concerns around governance and use of resources. He also noted that the number of staff in the Mayor's office had reduced significantly.

Councillor Nathalie Bienfait raised concerns about customer service, the high volume of member inquiries, and difficulties in contacting the council. Councillor Halsey acknowledged the need for more staff to answer phones, improved ICT infrastructure, and local outlets for face-to-face contact. He stressed the importance of listening to residents and using data to improve services.

Strategic Delivery and Performance Report (Q3 2025-26)

Councillor Saied Ahmed, Cabinet Member for Resources and the Cost of Living, presented the Q3 Strategic Delivery Performance Report. The report indicated that out of 60 performance measures, 26 were rated as 'green' (on target), a decrease from the previous quarter. Seven measures were rated 'red' (below target), the same as the previous quarter, and six were rated 'amber' (requiring attention).

Key areas of concern included:

• Lets to overcrowded households (KPI 010): This remained 'red' due to a lack of suitable three and four-bedroom properties and a significant portion of the council's stock comprising one-bedroom units.
• Number of privately rented properties inspected (KPI 011): This also remained 'red' due to resourcing shortfalls during recruitment campaigns, although the number of visits was increasing.
• Rate of first-time entrants to the Youth Justice system (KPI 025): This remained 'red', with an increase in the number of children receiving criminal outcomes. Mitigation efforts included additional training for decision-makers and the introduction of Outcome 22 for diversion.
• Victims of violence against women and girls who feel safer after engaging with commissioned provider (KPI 043): This remained 'red', with satisfaction levels below target, although the commissioned service itself maintained 100% satisfaction. Safety concerns were often linked to external factors like housing.
• Percentage of enforcement actions to fly-tip incidents (KPI 047): This remained 'red' due to an unprecedented increase in incidents reported by council crews and data capture irregularities. An action plan was in place to increase enforcement activities.
• Percentage of tenants satisfied with the overall service (KPI 054): This was rated 'red' due to dissatisfaction with repairs, damp and mould, and anti-social behaviour. Mitigation included monthly monitoring of repairs, IT improvements, and a new ASB hotline.
• Percentage of tenants satisfied that their home is safe (KPI 055): This also remained 'red', with dissatisfaction driven by ASB, outstanding repairs, and damp and mould. Mitigation included a new ASB policy, improved damp and mould response times, and fire safety measures.

Positive developments included improvements in the percentage of education, health and care assessments completed within 20 weeks (KPI 021), and the number of new jobs, training, and apprenticeship opportunities enabled for local people (KPI 032).

Budget Monitoring (Q3 2025-26)

Councillor Saied Ahmed also presented the Q3 Budget Monitoring report. The council was projecting an £18.6 million overspend on the General Fund, an improvement of £0.3 million from Q2. This overspend was attributed to increased demand in children's social care, temporary accommodation (TAs), adult social care, and SEND provisions – pressures felt nationally.

Mitigation measures included the use of parking reserves, Section 106 funds, and Public Health funds. Earmarked reserves were also utilised, and £4 million was drawn from the Indian mitigation fund. A corporate revenue contingency of £5 million was in place.

The Dedicated Schools Grant (DSG) showed a £9.9 million overspend, a deficit common across councils. The Housing Revenue Account (HRA) was projecting a £3.1 million overspend, primarily due to repairs and ongoing costs, with a £609 million investment planned to address this.

Savings targets of £30.2 million were largely on track, with £28.5 million achieved or forecasted. The capital programme was forecasting a £0.1 million variance.

Councillor Gulam Kibria Choudhury asked about the impact of international events on finances, such as inflation and interest rates. Councillor Ahmed stated that the council had budgeted for these within the Medium Term Financial Strategy (MTFS) and had sufficient contingency and reserves.

Councillor Ahmodur Khan questioned the income generation from CCTV, noting that none had been realised. Councillor Ahmed stated he was investigating this issue.

Councillor Gulam Kibria Choudhury also raised concerns about the £22.9 million overspend in adult social care. Councillor Ahmed explained that £22.5 million had been allocated in the next budget to address this, and that a dedicated adult social care board was in place to monitor pressures. Georgina Chimbani, Corporate Director for Health and Social Care, elaborated on the complexities of adult social care, highlighting efforts to promote independence, work closely with health colleagues, and ensure efficient use of staff.

Councillor Asma Islam linked the performance report to the budget, noting a projected £3.4 million overspend in public realm and waste operations, and a £200,000 overspend for the flats food waste service. She called for a clear report identifying gaps and outlining ongoing costs. Councillor Ahmed stated that all information would be available and that the investment in the waste service was based on departmental forecasts.

Councillor Jayed questioned the rising deficit in the high needs block of the Dedicated Schools Grant (DSG). Steve Reddy, Corporate Director for Children's Services, explained that a SEND reform plan was being developed to address the deficit, focusing on early help, prevention, and investment in mainstream schools.

Other Matters

The committee also received updates from Scrutiny Leads. Councillor Asma Islam noted that the work on the report she had been undertaking was ongoing and that she had conducted her own research into the waste department's performance. Councillor Nathalie Bienfait provided an update on children's education, mentioning a new body set up to monitor children's online activity and efforts to tackle cyberbullying. Councillor James King noted the lack of updates from the Resources Scrutiny Lead.

The Chair thanked members for their contributions, particularly those who would not be returning, and acknowledged the hard work of officers.