The Cabinet of Tower Hamlets Council met on Wednesday 22 May 2019, discussing initiatives to combat fraud, reviewing the council's financial performance, and approving an extension to a crucial IT contract. Key decisions included noting the progress of the London Council of Board Health initiative, acknowledging the year-end financial report with a focus on overspends and savings, and approving a direct award to Serck Services for an IT contract to support social care systems.

Combating Fraud Across London

The council noted the progress of the London Council of Board Health initiative, a collaborative effort involving London authorities to fund the development and pilot testing of technology for matching data across boundaries. The aim is to reduce and reverse coordinated activities, with initial funding focused on single-person discounts, individuals in sub-lesson housing, and business wage reliefs. Councillor Andrew Wood highlighted the importance of publicising these new tools to deter potential fraudsters, suggesting that communication through the council's communications team could warn people and prevent them from engaging in fraudulent activities. Joanne Starkie, whose team supports the Federal Government Strategy Board, was present to answer questions.

Financial Performance and Savings Challenges

The Cabinet reviewed the year-end financial report for 2018-19, which indicated a net overspend of £2.6 million after utilising £18.3 million of reserves. Councillor James King expressed disappointment regarding the slippage in savings, noting an increase from £5.5 million in 2018-19 to £10.3 million in 2019-20. He stressed that this trend is unsustainable and will make the current year's budget process more challenging. The Housing Revenue Account (HRA) saw a lower-than-intended transfer to reserves, with higher income levels offset by increased insurance and reduced investment income. Capital expenditure improved slightly, with 89% of the revised budget achieved in 2018-19, though delivery of HRA capital schemes worsened. The Dedicated Schools Grant (DSG) overspent by a net of £4.5 million, with a significant pressure of £5.7 million outside the schools block, primarily within the high-needs block, a national issue attributed to the increasing number and complexity of children with Special Educational Needs and Disabilities (SEND).

Councillor Andrew Wood raised concerns about capital expenditure, noting that out of 53 capital expenditure line items, 45 had underspent budgets, with only eight overspending. The most significant overspend was £27 million on acquiring new properties. Councillor Rachel Blake defended this expenditure, explaining that it was structured to address right to buy receipt rules and spread risk, particularly in light of potential pandemic-related issues. She highlighted that buying back ex-council properties as they come onto the market prevents them from being snapped up by private landlords for high rents, securing long-term assets for public housing. Councillor Peter Golds, Chair of the Licensing Committee, noted that the overspend on the new Town Hall was due to asbestos removal, a necessary but costly undertaking.

IT Contract Extension for Social Care Systems

The Cabinet approved a direct award to Serck Services for an extension to their existing serverlet contract. This extension, costing above the EU threshold, is necessary to reduce risks associated with a key social care system. The aim is to consolidate all framework, high-end mosaic support, including application, database, and infrastructure support, under Serck Services. This will facilitate the migration from an outdated Oracle database to a modern SQL database and from aging hardware to cloud hosting. This consolidation is intended to mitigate risks associated with managing multiple suppliers, which can lead to competing priorities, project delays, and slower issue resolution, as seen in other councils. Adrian Gorst, the original director for IT, and Andrew Cross were present to address questions regarding social care IT. The report indicated that the council's IT systems in social care have been neglected and are not as modern or accessible as they should be, with significant investment planned through a £25 million transformative budget.