The Overview and Scrutiny Committee of Tower Hamlets Council met on Monday 20 May 2019 to discuss the council's budget outturn for the previous financial year, the proposed closure of Raines Foundation School, and the establishment of new scrutiny subcommittees. The committee reviewed a provisional overspend of £2.8 million, with significant pressures identified in children's services, particularly in special educational needs and school transport. Discussions also covered the council's capital programme, savings proposals, and the financial outlook for the coming years, which was described as uncertain due to upcoming government funding reviews.

Budget Outturn and Financial Planning

The committee received a report detailing the provisional outturn for the 2018-2019 financial year, which indicated an overspend of £2.8 million. Mayor John Biggs explained that the primary driver for this overspend was children's services, a national issue exacerbated in London, particularly concerning special educational needs and school transport. Neville Murton, Head of Finance, provided further detail, highlighting that the Housing Revenue Account (HRA) was largely on target with a projected surplus, while the Dedicated Schools Grant (DSG) faced challenges, with an overspend in the high needs and early years budgets.

A significant concern raised was the slippage of savings proposals, with over £10 million carrying over into the current financial year, of which £1.8 million was deemed unachievable. This slippage would ordinarily lead to a substantial deficit, but compensatory underspends in other directorates had mitigated the overall impact. Councillors expressed concern about the sustainability of these compensatory measures and the need for greater transparency in how savings are achieved.

Questions were raised about parking income, which had seen an unexpected increase due to improved enforcement and continued breaches of parking restrictions. While some of this income was expected to continue, it was noted that budgeting on such a basis was uncertain. The issue of vacant buildings, specifically Jack Dash House, was also discussed, with the council facing reduced rental income and costs associated with securing the property. Options such as property guardians were being explored to mitigate these costs.

Looking ahead, the financial outlook was described as uncertain, with potential significant reductions in core funding due to the fair funding review, the spending review, and a business rate reset. Councillors expressed a desire for more detailed, quarterly monitoring reports and a clearer understanding of the council's financial position and the impact of these upcoming changes.

Proposed Closure of Raines Foundation School

A significant point of discussion was the proposed closure of Raines Foundation School. Councillor Bex White declared an interest as Chair of a youth work charity that delivers services at the school and highlighted her mandate from the London Diocese Board of Schools policy. Councillor Andrew Wood expressed disappointment that decisions regarding the school, including the appointment of an interim executive board, the partnership with Oakland's, and the decision not to admit a Year 7 intake for September 2019, had not been discussed in council, scrutiny, or cabinet. A petition with 2,500 signatures protesting the closure was presented.

Concerns were raised about the process of consultation, with Councillor Francis noting that the consultation for the closure of local authority day nurseries had gone to Cabinet, unlike the current process for Raines Foundation School. There was also anxiety that the next opportunity for the Cabinet to consider the matter would be in September, which was considered too late given that children would have already started elsewhere. The committee agreed to programme this decision into the Children's Subcommittee's work programme and to examine the broader process of school place allocation planning and consultation.

Scrutiny Appointments and Work Programme

The committee formally approved the establishment of new scrutiny subcommittees and appointed scrutiny leads for each. The returning subcommittees are Health and Housing and Regeneration, with the latter having Regeneration added to its remit. A new subcommittee, Children's and Education, has replaced the Grants subcommittee. Councillor James King was elected Vice-Chair of the Overview and Scrutiny Committee.

The committee also discussed an updated scrutiny toolkit, designed to be a more instructional guide for both members and officers. Suggestions were made to include information on how residents can engage with scrutiny work, increase the profile of scrutiny, and incorporate the legal responsibilities and requirements of overview and scrutiny. The importance of considering equalities impacts and using council data to inform scrutiny work was also emphasised.

The committee also discussed the pre-decision scrutiny of cabinet papers. Councillors raised questions regarding the extension of the contract for the ServlT casework management tool, the cost and risk of alternative procurement options, and anticipated delays. Concerns were also raised about the reporting of performance data, with a call for more detailed analysis of why targets were missed or exceeded, and clearer plans for improvement. The effectiveness of business support programmes and the need for outcome-focused metrics were also highlighted.

In relation to safeguarding, the committee welcomed the Safeguarding Adults Support Strategy but sought more detail on the outcomes of investigations, the removal of risks, and safeguards put in place. The rise in neglect cases was noted, and the need for easier reporting processes and training for carers, including family members, was emphasised. The committee also discussed the potential inclusion of detentions under the Mental Health Act within the remit of the Safeguarding Adults Board and the need to cross-reference Key Performance Indicators (KPIs) with the council's manifesto pledges.

Finally, the committee noted that a work programme planning away day would be scheduled for early June. The next meeting of the Overview and Scrutiny Committee was scheduled for 24 June 2019.