The Tower Hamlets Cabinet met on Tuesday 10 January 2017 to discuss the council's budget for the upcoming years, a review of the youth service, and changes to the council tax reduction scheme. Key decisions included the approval of the Mayor's budget, which aims to achieve significant savings while protecting frontline services, and a decision to keep the A-Team Arts project open. The Cabinet also agreed to maintain the existing council tax reduction scheme for those eligible for 100% support, while introducing some changes to the assessment process.

Budget and Financial Planning

The Cabinet discussed the council's budget for 2017-18 to 2019-20, which includes a significant savings target of £58 million over three years. Mayor John Biggs explained that these savings are largely driven by reductions in government grants and necessitate a fundamental restructuring of some services. The budget aims to protect frontline services by making efficiencies in support services and consolidating resources. The plan also includes growth proposals, such as increased funding for improving local neighbourhoods, street cleaning, and a fund for air quality initiatives. Councillor David Edgar, Lead Member for Resources, highlighted that the council's reliance on council tax and business rates is increasing as government funding falls. The report also detailed a review of the council's reserves, with a focus on consolidating unused reserves and ensuring sufficient funds for IT investment and transformation projects.

Youth Service Review

A significant portion of the meeting was dedicated to a review of the youth service. Mayor Biggs announced that the A-Team Arts project would remain open, reversing an earlier proposal to cut its funding. He explained that the project's funding had historically been linked to the youth service budget, leading to its inclusion in the review. The Cabinet was presented with two models for restructuring the youth service: a hub-based model and a locality-based model. Councillor Rachael Saunders, introducing the report, outlined the importance of the youth service in supporting young people's transition into adulthood. She recommended the hub-based model, which would involve centralised commissioning and management, while still emphasising service delivery in local settings. The report also addressed concerns raised by John McLaughlin, a representative of youth service staff, regarding workforce equality issues and the potential for a large number of current staff to be made redundant. Mayor Biggs stated that there was no intention to discriminate against staff based on ethnic origin and that the proposed changes were aimed at addressing historical imbalances in service usage and ensuring a representative workforce. Representations were also heard from Bernie Yates and Cindy, who spoke about the positive impact of the A-Team Arts project on their personal development and educational aspirations. Shafia, a young person with special educational needs, also shared how A-Team Arts had helped her with anger management and provided a supportive environment. Representatives from the University of the Arts London, including Bernie Yates and Cindy, highlighted their successful partnership with A-Team Arts, which has helped over 60 young people from Tower Hamlets progress to higher education.

Council Tax Reduction Scheme

The Cabinet reviewed the council tax reduction scheme for 2017-18. Mayor Biggs confirmed that the council would continue to offer 100% support for those assessed as eligible for a full rebate, aligning with the council's commitment to supporting low-income households in a borough with high levels of child poverty. However, he proposed changes to the assessment process, including reducing the period for backdated claims to one month and limiting the duration of claims for recipients abroad to four weeks. The report also recommended introducing a hardship fund for low-income households, which would be part of the Mayor's tackling poverty fund growth proposal. Councillor Marc Francis, who declared a personal interest as an employee of SACAS 2000 Trust, welcomed the decision to maintain 100% support and the rejection of a household means test. He also strongly supported the proposal for a hardship scheme. Zena Cooke, Director of Resources, provided a health warning regarding the ongoing cost of the scheme, which remains over £25 million annually, and expressed a desire for more progressive government policies on supporting low-income individuals.

Fees and Charges

Councillor David Edgar introduced the report on proposed fees and charges for 2017-18. The report outlines a range of charges, with increases largely reflecting inflation at approximately 2%. The largest income streams from fees and charges are from school meals and parking. The Cabinet was asked to approve revised statutory and non-statutory charges.

Housing Revenue Account and Lettings Policy

The Cabinet discussed the Housing Revenue Account (HRA) budget and rent setting for 2017-18. Councillor David Edgar explained that the report reflects the government's requirement to reduce social rents by 1% for four years. The recommendation was to agree an average weekly tenanted service charge increase of 2%, in line with inflation. Councillor Sirajul Islam, Lead Member for Housing, introduced a proposed tweak to the lettings plan for Band 3 applicants, recommending a reduction in the quota for one and two-bedroom properties to 5% and no quota for three and four-bedroom properties. Councillor Marc Francis, who had previously been involved in designing the allocations system, expressed his disagreement with the underlying philosophy of the report's language regarding Band 3 applicants, arguing that many are in need due to being placed in the private rented sector by the authority.

Other Matters

• Waste Management: A brief observation was made regarding waste management in areas close to Victoria Park, with a plea to incorporate these streets into future cleaning and refuse collection plans.
• Right-to-Buy Receipts: Councillor Sirajul Islam presented a report on the use of right-to-buy receipts for purchasing additional homes outside the borough to alleviate pressure from over 2,000 homeless families. The proposal is to purchase 100 homes outside the borough at a cost of £300,000 per unit for temporary accommodation.
• Late-Night Levy: Councillor Shiria Khatun introduced a proposal for a late-night levy, which would apply to licensed premises selling alcohol between midnight and 6 a.m. The levy, estimated to raise £350,000 annually, is intended to tackle late-night alcohol-related crime and disorder. While businesses expressed reservations, residents were largely in favour, with 62% of online respondents supporting its implementation. Mayor Biggs expressed mixed views, acknowledging concerns from small local businesses but ultimately agreeing with the recommendation to proceed, with a revised commencement date of 1 June.
• Individual Mayoral Decisions: A report on individual mayoral decisions was noted, including the approval of leases for shops on Ben Johnson Road.
• Victoria Park Events: The Cabinet resolved to agree a confidential item regarding contractual arrangements for commercial and community events at Victoria Park.