The Cabinet of Tower Hamlets Council met on Tuesday 05 January 2016, discussing a wide range of financial and service-related matters. Key decisions included the approval of the General Fund budget and a council tax increase, alongside the adoption of a new cycling strategy and significant changes to the commissioning of adult social care services.

Budget and Council Tax

The council agreed to a General Fund budget of £358.774 million for 2016-17, which will be subject to the impact of savings not taken. A council tax increase of 3.99% was approved, comprising a 2% precept for adult social care and a 1.99% increase to help offset the loss of the government's council tax freeze grant. This increase will result in an additional £17.71 per year for Band D households. The council tax base was formally adopted, reflecting property growth in the borough. The local council tax reduction scheme will continue for the coming year, with a review to be conducted alongside the impact of government welfare reforms.

Adult Social Care and Supported Housing Contracts

A significant decision was made to commence the tendering processes for various adult social care and supported housing contracts, including home care services. This is part of a broader effort to provide immediate sustainability and compliance, and crucially, longer-term stability for services, staff, and service users. Longer contract terms will be authorised to avoid recurring situations of short-term contracts needing constant renewal. The council also agreed to extend existing contracts where necessary to allow for the retendering process.

Housing Revenue Account (HRA) Rent Setting

Rents for council housing will be reduced by 1% for each of the next four years, from 2016-17, in line with a central government directive under the Welfare Reform and Work Bill. This directive is intended to reduce the government's housing benefit bill but presents challenges to the viability of some housing providers. The report also noted risks associated with the pay to stay policy and the sale of high-value properties.

Cycling Strategy

A new cycling strategy was approved, demonstrating a commitment to improving cycling infrastructure and safety in the borough. The strategy includes proposals for secure on-street cycle parking lockers, car bike ports in shopping areas, and a vision to transform Cycle Superhighway 3 on Cable Street. The council also committed to improving cycling on Manchester Road, with a focus on traffic calming. Councillor Dave Chesterton has been appointed as the council's cycling champion to monitor the delivery of the strategy.

Other Key Discussions and Decisions

• Leaseholder Extended Payment Support: New payment options for leaseholders facing large bills for major works were agreed. These include an extended discount for prompt payment, interest-free periods for invoices over £1,000, and longer interest-bearing payment periods for resident leaseholders with bills over £2,000 or £10,000.
• Infrastructure Delivery Framework: A new process and system for administering and reporting Section 106 and Section 151 (SIL) contributions were approved. This framework aims to increase transparency and accountability in how these funds are allocated to infrastructure projects.
• Carbon Offset Solutions: Recommendations were made for investing carbon offset monies secured through planning obligations. The priorities for investment are fuel poverty, building retrofit, and a community fund, with a focus on private sector housing properties.
• Corporate Revenue and Capital Budget Monitoring: The report indicated that the council was expecting to break even on the general fund budget for the year, but highlighted areas of pressure, particularly in social care. The Housing Revenue Account was projecting an underspend, while the capital budget expenditure was lower than anticipated, with concerns raised about potential slippage on projects like decent homes.
• Strategic Performance Monitoring: The six-monthly strategic performance monitoring report was discussed, highlighting progress in most areas but also identifying challenges in meeting strategic targets. Specific questions were raised regarding the delivery of places for two-year-olds, delays with commissioners, and the conversion of SEN statements into education and healthcare plans.
• Children and Adult Services Capital Programme: Capital proposals were presented, including plans for school places and early education provision. Health-related elements included the allocation of Section 106 monies to GP practices for redesign and capacity increase, and fitting out accommodation for the St. Paul's Way practice.
• Collaborative Agreement on Sexual Health: The council agreed to join a pan-London collaboration to commission sexual health services. This initiative aims to improve access, partner notification, and self-sampling, while also driving down costs and ensuring better value for money.
• Unpaid Carer Scrutiny Challenge Session Report and Action Plan: The report and action plan for supporting unpaid carers were welcomed. Key actions include co-producing a new carers' strategy with the carers' centre, piloting a dedicated role for the carers' agenda, and ensuring services are shaped around user needs. Carers will also be explicitly considered in the council's welfare reform response.
• Mayor's Individual Executive Decisions: A list of the Mayor's individual executive decisions was noted, including the endorsement of a strategy for the publication of East End Life.

Apologies were received from Councillor Peck and Councillor Islam. The meeting also noted the absence of several directors, with substitutes in place.