The Cabinet of Tower Hamlets Council met on Wednesday 30 January 2019 to discuss a range of significant issues, including the council's budget, the adoption agency, and fees and charges. Key decisions were made regarding the adoption agency and the council's budget, with further discussions planned for other items.

Council Budget and Medium-Term Financial Strategy 2019-22

The council's budget and medium-term financial strategy for 2019-22 were presented, outlining proposals for full council approval on 20 February. Councillor Candida Ronald, Lead Member for Resources and the Voluntary Sector, highlighted the significant challenges faced by local authorities, with Tower Hamlets Council's core funding from the government reduced by £148 million since 2010. Despite these pressures, the budget aims to address residents' priorities, including community safety, housing, and children's services and education.

Key investments proposed include:

• Community Safety: A new team of ASB enforcement officers, continued investment in additional Metropolitan Police officers, capital investment in a new CCTV network, and enhanced support for the gangs' exploitation team.
• Housing: Continued prioritisation of the capital programme for building new council homes for social rent.
• Young People: Significant investment in early years education and new initiatives for disadvantaged children and families.

The budget also includes difficult decisions regarding savings and council tax to protect and invest in essential services. The report noted final government resources of £105,000 for Brexit preparedness for both the current and next year, which will be reflected in the final budget. Other adjustments include changes to empty homes premium charges, business rates levy supplement, the Marlbury Place lease, and an increase in the school's budget. The Overview and Scrutiny Committee's budget response was formally noted, with a commitment to respond to their comments.

Regional Adoption Agency (Adopt East London)

A significant decision was made regarding the council's participation in the Adopt East London regional adoption agency. Councillor Danny Hassell, Lead Member for Children and Young People, explained that this move is a government requirement for local authorities to enter into regional arrangements for adoption. Tower Hamlets will join Newham, Barking and Dagenham, and Havering in this initiative.

The business case for the regional arrangement was reviewed, and it was confirmed to be viable with the remaining boroughs after Waltham Forest withdrew. Financial implications include the contribution of the current adoption budget to the regional agency and an additional contribution for start-up costs, though the total contribution is expected to be lower than other boroughs. Medium-term savings are anticipated through a reduction in inter-agency fees and improved adoption performance, leading to reduced placement costs as children in care are hoped to be adopted more quickly.

Concerns were raised by John McLaughlin of Unison regarding the transfer of staff terms and conditions. He argued that the proposal to transfer staff to Havering's terms and conditions, as suggested in the business case, contradicts the protection offered by the Transfer of Undertakings (Protection of Employment) Regulations (TUPE). Mr. McLaughlin stated that Havering's terms and conditions are not universally better than Tower Hamlets', and that staff should not have their terms changed in advance of transfer without their agreement.

Council officers, including Richard Baldwin, Divisional Director for the service area, and Will Tuckley, Chief Executive and Head of Paid Service, clarified that the decision is an in-principle agreement to move forward with the consortium. They emphasised that detailed consultation with staff and trade unions will take place to ensure no detriment to employees' terms and conditions. The intention is to harmonise terms and conditions through negotiation, respecting TUPE regulations. The cabinet agreed to the recommendations, with the caveat that the terms and conditions aspect requires further consultation and negotiation with Havering and the relevant unions to ensure staff rights are protected.

Fees and Charges

The report on proposed changes to fees and charges for the financial year 2019-20 was presented by Councillor Candida Ronald. The council generates over £56 million annually from fees and charges, and these are reviewed each year to consider the council's financial strategy, inflationary pressures, and demand. For 2019-20, an income target of £419,000 was agreed, with a further £100,000 proposed through changes to specific charges. Most charges are set to increase by at least the Consumer Price Index (CPI) of 2.4%, with some exceptions rising by more. The introduction of a diesel surcharge was noted, along with other charges increasing above inflation. The cabinet acknowledged the observation that behavioural change is not solely achieved through charging, but also through education and encouragement, particularly in areas like air quality improvement.

Integrated Information and Advice Plan for Health and Social Care

Councillor Denise Jones, Lead Member for Health and Social Care, presented the report on redesigning the information and advice service for health and social care. The recommendation was to extend the contract of Local Link for nine months, aligning its end date with other contracts to facilitate a more integrated provision for residents. Mr. Thompson, Joint Director of Integrated Commissioning, clarified that this extension would mean the contract ends in March 2020. The cabinet agreed to the recommendations, noting the useful work Local Link does within the community.

Grant of Release for First Floor of Bethnal Green Library

Mayor John Biggs presented his report on the grant of release for the first floor of Bethnal Green Library, located at Cambridge Heath Road, E2 0HL. Following a refurbishment of the library, funded in part by the Greater London Authority (GLA), the first floor is to be leased for commercial use. The best offer received was from Bart's NHS Trust for their life sciences project. This initiative is seen as a community-focused commercial use, aiming to foster biomedical science research and development. The lease is expected to provide rental income and potential community benefits, including flexible workspace and employment opportunities. Councillor Denise Jones suggested that a condition of the lease could be for the tenants to contribute to the local community, similar to arrangements in other arts and creative spaces. This suggestion was welcomed, and it was noted that discussions with Bart's NHS Trust could explore such contributions.

Other Matters

The meeting also included announcements from Mayor John Biggs regarding the cold weather and the launch of the council's homelessness strategy. He also mentioned the upcoming launch of a Brexit report and positive feedback from Ofsted on their quarterly visit to the borough, particularly concerning the Children Looked After service. The Overview and Scrutiny Committee's work on community safety, anti-social behaviour, and the Prevent agenda was also discussed, with Councillor Abdal Ullah highlighting recommendations for simplifying ASB reporting, improving feedback to residents, setting standards for ward panels, and enhancing information sharing. The committee also discussed the Prevent agenda, expressing a desire for greater evidence of its work and ensuring the Muslim community does not feel targeted.