The Cabinet of Tower Hamlets Council met on Wednesday 8 January 2020 to discuss and recommend the council's draft budget for the upcoming financial year, alongside proposed changes to fees and charges, and the calculation of the council tax base. The meeting concluded with the agreement of these recommendations, which will now proceed to further scrutiny and full council consideration.

Council Budget and Financial Planning

The council's draft budget for 2020-21, along with savings for the following two years, was presented and recommended for further scrutiny. This budget aims to protect frontline services, invest in the community's future, and deliver on manifesto pledges, despite significant funding cuts from central government over the past decade. The council has made £190 million in savings since 2010 and faces a further £39 million requirement by 2023. The budget includes an additional £7.2 million for children's social care and £12.4 million for supporting vulnerable adults. The council also plans to continue its free school meals programme and maintain the 100% council tax discount scheme, though the long-term sustainability of this discount is under pressure.

The budget setting process was described as particularly challenging due to the provisional confirmation of the government settlement in December, a general election, and the ongoing implications of Brexit. The council consulted with approximately 2,000 residents, businesses, and community groups, who prioritised efficiency, reduced spend on agency staff, increased commercial income, and collaboration with the voluntary sector. Services for children, education, and the elderly and vulnerable adults were identified as the most valued.

In response to resident feedback and government expectations, the budget proposes an increase in council tax of 1.99%, with an additional 2% for the adult social care precept. This equates to an extra 78 pence per week for the average property. The council highlighted that this increase is necessary to safeguard services and avoid further damaging cuts under the government's fair funding proposals.

Concerns were raised by Councillor Andrew Wood regarding the reprofiling of nearly £4 million in agreed savings, specifically in contract management efficiencies and greater commercialisation, questioning the clarity of responsibility for these shortfalls. Neville Murton, Head of Finance, explained that dedicated boards, including cross-directorate representation, have been established to oversee these areas.

Councillor Rachel Blake, Cabinet Member for Health, Wellbeing and Social Care, emphasised the budget's commitment to increasing the supply of genuinely affordable housing, with progress being made on the first two thousand council homes. Councillor Danny Hassell, Cabinet Member for Children and Young People, detailed the budget's investment in safeguarding vulnerable children and young people, ensuring timely assessments and support, and meeting the council's duties as corporate parents. This includes funding for unaccompanied asylum-seeking children and home-school transport for children with special needs and disabilities. The budget also addresses pressures on special educational needs funding, proposing a more modest reduction in top-up funding for schools.

Councillor Candida Ronald, Cabinet Member for Housing and Regeneration, highlighted the ongoing investment in the housing stock, including significant resources for fire safety work following the Grenfell Tower inquiry and the Hackett review. Councillor Sabina Akhtar, Cabinet Member for Health, Wellbeing and Social Care, spoke about the immense budget pressures in adult social care, driven by an increasing and ageing population with complex needs. The council is exploring innovative ways to support independent living and is facing the challenge of introducing charges for adult social care, having previously been one of the last councils to do so.

Fees and Charges

The annual report on fees and charges for the financial year 2020-21 proposed increases, largely in line with inflation (CPI), with some above. Councillor James King, Chair of Overview and Scrutiny (ONS), raised concerns about the potential impact of these increases on vulnerable residents, citing examples such as the rise in the Meals on Wheels subsidy charge from £3.50 to £5.30 and increased leisure charges. He questioned the adequacy of the Equality Impact Assessment and suggested exploring opportunities to increase charges on those with greater capacity to pay, such as developers.

Councillor Sabina Akhtar responded that while many charges are increased by inflation, concessions are available for families with low incomes, and charges for activities requiring specialist trainers, like canoeing or cycling, are necessary to cover costs. She noted that fees for local residents are comparatively low and that increases are primarily aimed at those from outside the borough or larger groups.

Kevin Bartle, Director of Finance, clarified that the overall net increase from fees and charges is £445,000, with £125,000 being new income and £320,000 contributing to existing savings targets. The meeting agreed to recommend the proposed increases, with a caveat that the council would consider specific representations from ONS regarding charges that may be punitive for low-income residents.

Calculation of Council Tax Base

The report on the calculation of the council tax base for 2019-20 indicated an increase of 3,870 Band D equivalent properties, representing a growth of nearly 4%. Councillor Andrew Wood questioned the assumption used for dwelling growth in the budget, noting that the average annual increase over the past eight years has been 2.9%. Officer Kevin Bartle confirmed that the assumption used in this year's budget was 3%. The discussion also touched upon the council's position as the densest local authority area in London, with ongoing challenges related to land availability and the need to maintain fairness and equality. The recommendation to agree the council tax base calculation was approved.